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Leading organisations are shaping the future of rewards

Talent|Total Rewards
Beyond Data

By Sambhav Rakyan and Shai Ganu | March 14, 2019

Progressive organisations are taking innovative actions to modernise their Total Rewards philosophy.

Over a quarter of organisations in Asia Pacific say that not having an adequate rewards programme is a major obstacle in their ability to attract critical talent. 1 There are social, technological, and cultural shifts emerging in the talent market – including personalisation, transparency, flexibility, and inclusion and diversity – driving how employees want to be rewarded. 2

Progressive organisations have taken innovative actions to modernise their Total Rewards philosophy. Willis Towers Watson’s 2018 Modernizing Total Rewards Survey Report highlighted three things in particular that they do differently.

Progressive organisations have taken innovative actions to modernise their Total Rewards philosophy. Here are three important things they do differently

Progressive organisations have taken innovative actions to modernise their Total Rewards philosophy

Using a holistic approach for Total Rewards

Progressive companies see pay, benefits, employee wellbeing, and career development, among others, as a whole strategy and not as individual offerings. These companies also ensure that their Total Rewards package aligns with and serves to promote the organisation’s purpose, values and culture. This mind-set is articulated carefully throughout the organisation, thereby helping employees to better understand, value and maximise their total rewards portfolio.

They also prioritise building their talent value proposition through workforce segmentation. This can help managers to be more consistent and effective in their messaging around performance management and personalised rewards, which can lead to a greater understanding of rewards and increased engagement at work.

Leading organisations take a holistic approach to developing their Total Rewards strategy

Leading organisations take a holistic approach to developing their Total Rewards strategy

Asking employees for their expectations through analytics

Globally, 70% of employees expect their employers to understand their needs and wants, but only 56% of employers actually do. 3 Employees want more choice, flexibility and personalisation in how they are rewarded. Understanding the reasons behind these needs can lead to better employee relationships and engagement.

Leading companies put time and effort into fully understanding what their employees see as valuable in their total rewards offerings. They use various channels and methods to learn what their employees actually want and need, instead of simply making assumptions. 3 They use this knowledge to design and deliver their total rewards, thus enabling them to create a consumer-grade experience for employees.

Wellbeing is one of the key benefits that employees today highly value. Almost 75% of leading organisations consider wellbeing as a priority area and have a design for work-life balance within the rewards portfolio. 3

Total Rewards leaders are doing better at supporting employee wellbeing

Total Rewards leaders are doing better at supporting employee wellbeing

*Leaders represent organisations identified as leaders in Total Rewards.

Flexible working is another popular offering as it also supports employee wellbeing, but many employers tend to overlook its value. Only 31% of organisations globally offer this as a key component in their total rewards programme. Companies that provide a good work/life balance are twice as likely to select flexible work arrangement as a key Total Rewards component, compared with those that don’t provide a good work/life balance. 3

Integrate technology into Total Rewards design and delivery

In recent years, a breakthrough innovation in the total rewards space is enrolment tools that can provide a consumer-grade experience for employees. Automated systems can also help organisations be agile and make strategic changes in rewards design and delivery. 3

In Asia Pacific, less than half of organisations use software to support the implementation of base pay and short-term incentives. 4 HR functions that still rely on spreadsheets are facing increasing challenges with delivering effective pay-for-performance schemes.

More than 90% of organisations claim to use advanced technology for total rewards design and delivery, but only 11% use it well. 3 HR professionals need to develop their tech-savviness in order to efficiently leverage technology for capturing employee insights, identifying personalised messaging and appropriate offerings for different employee segments, and making better and effective rewards decisions.

The great strides that leading Total Rewards companies have taken in innovating their rewards strategies, are helping them attract, retain, and engage key talent. Without having to worry about continuously rebuilding their human capital, these companies are twice as likely to report outperforming their industry peers. 3

Moreover, by addressing key social themes such as fair pay and inclusion and diversity, leading companies are better positioned to be employers of choice in a talent market with a heightened sense of social awareness and activism. 2 These types of leaders experience only 39% difficulty with attracting diverse employee populations. 3

Over the next three years, companies deemed as Total Rewards leaders plan to implement more personalised and individualised rewards, transparent communication and programme governance, including measurement of ROI for rewards program. 3

A holistic and employee-driven Total Rewards strategy that is delivered thoughtfully through the right technology, is critical to a company’s ability to compete for talent. A ‘good offer’ may get talent in the door, but a Total Rewards offering that puts value on employees is what will get them to stay.

1 2018 Artificial Intelligence and Digital Talent Survey, Digital Transformation Practices – Asia Pacific
2 Beyond Data 2018-19 Rewards Trends Webinar - Asia Pacific
 (Contact us to access webinar recording passcode)
32018 Modernizing Total Rewards Survey Report - Global
42018 Getting Compensation Right Survey – Asia Pacific Findings

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