Reviewing the 'Total Rewards Model' in staff retention

"A 'Total Rewards Model' is aimed at attracting, retaining, motivating and engaging the best possible employees by offering more than an attractive remuneration package," explains Yolanda Sedlmaier, SARA Exco member. Most organisations listed on the Johannesburg Stock Exchange are corporate members of SARA that has, since its inception in 1997, promoted and developed the reward profession well beyond the concept of remuneration.

"Higher employee satisfaction is proven to deliver superior operational, customer and financial outcomes. The areas of consideration in compiling offers of employment need to include compensation, benefits, work-life effectiveness, recognition, performance management and talent development."

Start with what employees want

During the feedback event, Wayne MacFarlane, head of Human Capital Policies at Standard Bank, highlighted key discussion points from Aon Hewitt's presentation titled "Inside the Employee Mindset."

Employees want to feel appreciated for their efforts and successes and prefer to work for a humanistic company where they can develop and cultivate relationships. At the top of their wish lists are employee recognition, respect, loyalty, home and work balance, open communication, fairness, honesty and trust.

This is in sharp contrast to the traditional focus areas of business, namely: customer satisfaction, profit, quality, brand image, profitability, cost reduction and financial stability, long hours and bureaucracy.

Total Rewards 2020

The next five years are likely to see a shift in the way that reward programmes are structured and shared with employees, allowing for a more sustainable and flexible strategy that is to the benefit of all.

Elize van Biljon, Key Account Manager at PwC Research Services, shared Mercer's seven predictions for 2020 total rewards.

1. Total rewards will be customised for each employee
   
2. Employees will have more risk through incentive compensation
   
3. Employer sponsored benefits will become less prominent
   
4. Performance ratings will not have disappeared
   
5. The workforce will have more contingent workers than today
   
6. Increased workplace flexibility will be the norm
   
7. All pay will be transparent and pay disparity will not have decreased
   

Organisational response to predicted changes

Minda Botha, REMeasure Manager at PwC on job evaluation, warned that the unquestioned loyalty that previous generations have shown their employer is outdated. Botha also shared a few tips on what employers can do to prepare and manage total rewards to keep employees satisfied.

• Use data and analytics to get to know patterns of past behaviour to predict and prepare for the changes that will be necessary in your own organisation.
  
• Understand the internal labour market to inform workforce planning. The biggest reason why employees resign is usually career progression. Individual career planning - rather than generic functional level plans - is therefore of utmost importance.
  
• Develop a 'Total Rewards Strategy' by considering compensation, benefits and careers across all focus areas of reward. This can include cost, employer needs, employee needs and external perspectives.

It has become an art form to attract, retain and engage employees from all levels within the organisation. Reward professionals who are responsible for the design, development and implementation of reward strategies, policies and processes in the business and who ensure that these will support organisational objectives, are in possession of critical skills. They can potentially transform the employer/employee relationship and support the organisation's goals going forward.

To date, 150 SARA members have achieved a professional reward designation and an increasing number of employers are starting to include a professional reward designation as a requirement during their recruitment processes. Those companies in South Africa that have already made great strides towards adopting a Total Rewards Model are celebrated annually at the SARA Reward Awards Banquet. Entries for this year's awards close on 17 August 2015 and more information is available from www.sara.co.za.