Are you still relying on benchmarking alone to drive your total rewards mix? If so, it's time to think differently. Our approach to total rewards customization is designed to help clients fine-tune offerings based on employee lifestyles and your unique qualities as an employer.
We use a mix of data and qualitative evidence to help you identify employee lifestyle segments; learn the value of a new or existing reward offering through the lens of each employee; and realize what makes you unique in the marketplace to attract and retain talent. Ultimately, these efforts allow clients to better communicate the value of rewards and understand the ROI of plan changes.
What is the optimal compensation package for each person in your organization? While complete customization at the individual level is probably not worth pursuing, we all know different segments of your employee population have different preferences in terms of what kind of rewards they want and expect. The challenge for HR leaders is to identify the optimal rewards packages to keep existing talent engaged while also attracting new talent to fuel changing business needs.
Our work typically begins with a survey of employee preferences, where each person is asked to rank the kinds of rewards they want. We then use advanced analytics techniques to determine the optimal combination of rewards for each key segment of your employee population. Lastly, we leverage our extensive market data to identify opportunities for differentiation relative to key competitors for talent.
Following the implementation of a more optimized rewards portfolio, clients commonly report higher levels of employee engagement, increased retention and lower turnover.
A technology company in the U.S. faced rising employee turnover at their headquarters in a city with a rising cost of living. While the company’s brand helped them attract a lot of top talent, the reality of the actual work environment quickly seemed to set in, resulting in a very high turnover rate within the first year.
With our help, the company took a closer look at their data to identify existing lifestyle groups and their work/reward priorities. They learned they had three lifestyle types within their new-hire population, each with very different preferences related to careers, learning and pay/benefit offerings. They also learned their most loyal and valuable employees had different needs than new hires, which made them question their reflex to alter rewards offerings to aid talent attraction.
The results of our study were used to shape their rewards messaging on their internal website (customized for different employee lifestyle segments) and on externally facing social media. The results of the analysis also pointed to specific action items that would benefit retention across lifestyle groups related to opportunities to save money (stock ownership plans, retirement savings), the work environment (most employees valued more autonomy), and career paths (faster career progression during early employment). The company also launched a special initiative focused on reducing employee turnover among women.
Let us know how we can help and a member of our team will be in touch shortly.
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