While the concept of total rewards is nothing new, it is constantly evolving. Shifting employee preferences and the needs of modern, flexible organizational structures are changing how organizations not only define and personalize total rewards, but also how they approach measurement and communications.
Mercer Select Intelligence surveyed nearly 700 organizations across industries and geographies to understand these emerging changes and the latest trends for employee rewards around the world. The resulting report presents the clearest window into how HR leaders are considering how total rewards strategies can prepare them for the needs of today and the challenges of tomorrow. Here are the highlights.
3 Key Findings
- Nearly all organizations include contractual components (compensation and health benefits) in their definition of total rewards. Two-thirds have added experiential components like career and well-being elements, while half include emotional components related to purpose (such as meaningful work and pride in organization).
- 59% of organizations are planning to revisit their total rewards strategy in the next six to 18 months, and another 12% will do so for specific job families.
- 53% are watching the personalization trends closely, and only 20% are not considering personalization at all.
- Total rewards strategies continue to evolve, with a more holistic definition incorporating new elements and personalization emerging out of segmentation.
- Organizations struggle with using data to assess their total rewards programs, particularly moving beyond simple benchmarking to employee sensing and the impact of rewards on productivity and engagement.
1 Action You Should Take Now
Review your total rewards strategy to determine if it delivers a differentiated and unique employee value proposition that resonates with your employees and candidates.
Interested in more?
The 2017 Total Rewards Practices Survey delivers Mercer Select Intelligence’s latest data on total rewards strategies and trends around the world. Use this report to learn how today’s business leaders and HR decision makers are thinking about rewards within their own organizations, including how they design, communicate, and implement rewards strategies.