Rewards that are meaningful and fair are the crux of the program as they will engender the employee trust that is critical to success. That requires smart use of data to develop meaningful insights into the workforce so the offerings are relevant and personalized to the individual.

Where to start

More effectively aligning pay – or more broadly, compensation – with performance will do far more than improve retention. It provides employers with a powerful lever for resilience and results. Here are four considerations to bake into the effort.

Make your data work for you. Enterprises are awash in data that is underutilized – 68% of what's available to them, in fact. Yet readily available employee data – from benefits claims patterns to attendance records – is invaluable to identifying employee profiles, one way to customize total rewards. Another way to fine-tune the strategy is through Workforce Persona Analysis, which fine-tunes how an organization sees the unique needs of different generations and personalities. Better use of data enables employers to provide each employee a Quality Employee Experience – key to better engagement and productivity, and company success.
Address financial stress by meeting basic, universal needs. The reality is that offering top tier wellness perks are likely to be less of a performance incentive to employees struggling to cover rising grocery costs. Tools like Total Rewards Hierarchy of Needs are important for structuring plans that respond to basic necessities. Think employee spending accounts to help cover essential expenses. It's also key to offer tools that improve their financial readiness: the better able employees are to make informed decisions, the less money-related stress is a burden that affects their productivity.
Make your leaders more accessible. There's a link between productivity and the extent to which employees feel valued, and that takes more than benefits alone. One-on-one, personal interaction between employees and their leaders is crucial to a culture where people are demonstrably valued. Improved productivity follows.
Find experienced partners. The right advisors will be instrumental in guiding results-driven solutions. This should include an extensive suite of analytical tools and the support to go along with them. Done right, they will help employers with the insights and tools to maximize productivity-to-compensation alignment and bridge the gap between data, strategy and people.

Employers are increasingly pressured as profitability threats collide with a workforce under heightened financial distress. Their best response is to find creative and forward-looking ways to align compensation with performance. Not only will this be good for business, but it will provide a lifeline for culture, retention and resilience.

Instant Insights /

The $183B drain: How financial stress is eroding U.S. workforce productivity

More From HR Executive

Related Stories

Recommended For You