This year is one where employees continue to have a strong hand to play when it comes to driving changes in the reward packages that businesses offer. Many sectors are experiencing shortages of qualified and experienced staff, and businesses are realising that to attract and retain the best people, they must adapt their reward strategies. The term ‘total reward’ has been increasingly popular in recent years, referring to how employers increasingly offer (and employees increasingly expect) something other than a simple paycheck – total reward encompasses other rewards such as wellness programs, flexible working arrangements, support for healthcare, childcare or student loan payments and a plan for future professional and personal development.
Here are some of the notable trends that are shaping total reward packages in 2024.
Personalized Rewards
Traditional businesses favoured fixed salary scales and benefits packages, but 2024 has seen ever more firms embrace personalized rewards. These can make all the difference when it comes to attracting top talent. They usually take the form of a ‘menu’ of benefits and rewards that employees can choose from to suit their needs and select the ones that are of most value to them. The options should be offered after surveys and discussions to identify what would be most valuable to a workforce. While benefits form part of the total reward package, do not entirely neglect the basic salary, and ensure that regular salary benchmarking is undertaken to ensure pay is in line with the sector or industry.
Work-Life Balance
The impact of the COVID-19 pandemic on people’s priorities continues to have effects. Work-life balance is an increasingly important factor in employee decisions, and many are putting more emphasis on the ‘life’ side of the balance. Consequently, many companies are emphasizing enhanced paid time off (PTO) policies as part of their total reward. Policies can include unlimited PTO, extended parental leave, equal parental leave for men and women, and the opportunity to take sabbaticals. Flexible working hours and options for remote or home working are also key parts of this offer.
Family Care Benefits
Many countries are seeing families struggle with rising childcare costs, and this can be particularly challenging in cities and regions that have the best employment opportunities. Benefits that alleviate these costs are proven to have major positive impacts on employee productivity, greatly reducing absenteeism and increasing retention. There are clear benefits in employee well-being, too, with mental health being improved by reducing the stress and anxiety of both childcare and the attendant financial strain.
Environmental and Social Responsibility
Sustainability, community engagement, and other forms of civic activism are becoming increasingly important to many people and are becoming part of ever more total reward packages. Employees are placing ever more emphasis on a company’s ESR policies when choosing a workplace and ever more value on initiatives as part of a reward package. This includes things like incentives to use public transport, facilities, rewards for using electric vehicles, paid volunteer time, and matching charitable donations.
Unique Perks
More traditional perks and benefits still have a place as part of a reward package, and if they’re distinctive or particular to the company, that can make the firm stand out and clearly show appreciation. Employee discounts on company products or services are typical, as are partnerships or schemes with other businesses for similar discounts. A system of monetary bonuses or other recognition programs is still seen as valuable by many employees. Do not underestimate the benefits on morale and engagement that even low-cost measures such as awards and public recognition.
Summary
The latest trends in employee reward packages indicate that employees are increasingly looking for a comprehensive approach that covers financial reward and their personal well-being. The trends highlight the importance of recognizing the diverse needs and preferences of employees to ensure they feel valued in their workplace.
