Employees are the backbone of any business, whether it’s a quick serve restaurant or a high tech software development shop. And in order to get the most out of a company, employees must be performing well … therefore employee rewards must be treated as fundamental.
Employee rewards must be treated as fundamental.
Towers Watson, a leading firm helping organizations improve performance with effective people, risk, and financial management, has just released eight guiding principles that are essential to developing an effective total rewards strategy.
Tango Card’s philosophy about rewards underscores these principles. From denomination to delivery, a reward must match the business’s intention as well as an employee’s desire.
Here are the eight guiding principles for developing an effective total rewards strategy according to Towers Watson. We’ve also added our interpretation of how to tactically implement these principles into employee rewards for your business:
- Performance orientation. An effective reward should vary according to employee roles, levels, and responsibilities.
- Competitive positioning. Employee rewards must be aggressively positioned but still flexible.
- Affordability. Can rewards fit into your budget and still have an impact? Yes.
- Shared responsibility. Get your employees to have “skin in the game” and actively take part in selecting their reward. With a Tango Card, the recipient gets to choose how, where, and what to use it for Studies show that if employees are involved.
- Career orientation. Longevity of the employee’s service must be taken into account, and the rewards must include tangible “real rewards” as well as intangibles like continuing education.
- Individual flexibility. This applies to workforce arrangements such as telecommuting, but also directly to the reward. Different employees are motivated by different rewards, and businesses must factor this into their overall rewards strategy.
- Segmentation. Just like a marketing campaign, a rewards strategy must leverage segmented data – meaning the work experience and the reward experience must be customized.
- Delivery. With traditional rewards, delivery can be expensive and time-consuming. Take advantage of digital and mobile – your employees want and expect this anyways.