McLean & Company: A Total Rewards Strategy Separates Organizations from Competitors in a Competitive Labor Market

To increase engagement and retention, Total Rewards strategies use the employee experience lens.

TORONTO, Jan. 19, 2023 /CNW/ – Talent attraction and retention are crucial organizational functions in an ever-changing labor market. The external environment is changing and pressures are increasing. To retain and attract talent, a Total Rewards strategy must be the focal point. To facilitate the implementation of a TR strategy to improve organizational talent attraction and retention. McLean & CompanyOne of the top HR research and advisory firms around has published its industry blueprint data-backed by titled Build a Total Rewards Strategy.

The Total Rewards strategy provides a comprehensive view of the benefits an employee gets in return for their work at an organization. The strategy includes all the traditional rewards categories. CompensationBase pay is also available. benefitsIt includes healthcare and the following:

• Wellbeing – Supporting employees’ overall happiness both within and outside of work.

• Development – Supporting employees’ development of knowledge, skills, and attributes.

• Recognition – The acknowledgement by the organization and employees of the demonstration of desirable behaviors.

“A Total Rewards approach that is solely focused on compensation and benefits does not reflect the full value of employees. Also, it is not flexible enough for the current labor market. “says Will Howard, director, HR research & advisory services at McLean & Company. “It doesn’t matter how large an organization is, Total Rewards offers will not have much impact if they do not take into consideration the unique aspects of your workforce and are not perceived to be meaningful.“

Many organizations offer a mix of benefits, compensation, recognition, well-being, and/or other development options. However, very few have a comprehensive TR strategy. Despite compensation, benefits, and other TR areas making up a significant portion of an organization’s overall expenditures, McLean & Company’s resource outlines how there is often a lack of understanding of which TR offerings employees value and how they impact organizational success. McLean & Company suggests that organizations understand the most important things to employees and make sure they are within their budget and resources to reward them with meaningful rewards.

To build a Total Rewards strategy and find the right balance of priorities between organizational and employee needs, McLean & Company recommends that HR leaders follow four key steps that will yield a three- to five-year roadmap upon completion. These four steps are:

1.  Plan and identify your goals – The first step requires establishing a TR project team, reviewing strategic documents and uncovering key takeaways, and scanning the external competitive environment. After these are completed, HR leaders can create an inventory of TR offerings and review and analyze existing data as well as additional data from employees.

2.  Identify cost optimization strategies – Step two includes leveraging key takeaways from step one to define current and ideal states for each TR category, identifying gaps between the current and ideal states, and brainstorming strategic projects to address identified gaps. Once the task is completed, HR leaders must consult Finance and HR stakeholders to determine budgetary constraints and prioritize strategic initiatives based on their potential impact and estimated effort.

3.  Make an action plan – Step three involves gathering information to assess prioritized strategic projects, examining each strategic project against organizational resource constraints, and prioritizing strategic projects into a finalized list.

4.  Create a roadmap for a TR strategy – The fourth and final step calls for defining goals and metrics for each strategic project on the finalized list and developing a business case to secure senior leadership buy-in. Once the business case is complete, the HR leader can create a TR purpose statement and an action plan. The communications will also need to be planned. Finally, the plan will include an evaluation and iteration of the TR strategy.

For full insights and guidance on creating a Total Rewards strategy that supports both employee and organizational needs, HR professionals can download McLean & Company’s industry blueprint, Build a Total Rewards Strategy.
 For more about McLean & Company or to download the latest industry research, visit hr.mcleanco.com Use the following link to connect LinkedIn  Twitter.

About McLean & Company

Through data-driven insights and proven best-practice methodologies, McLean & Company offers comprehensive resources and full-service assessments, action plans, and training to position organizations to meet today’s needs and prepare for the future.

McLean & Company is a division of Info-Tech Research Group.

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