Total Rewards programs are changing business dynamics in India Inc. The latest TJinsite study by TimesJobs indicates that nearly 43% of the surveyed organizations already have a well-built Total Rewards strategy and 23% have it in the planning stage.
July 26, 2016: Total Rewards, encompass not just compensation and benefits but include other rewards such as a motivating work environment, learning & development, recognitions, and professional growth opportunities provided to employees as well.
Organizations recognize that Total Rewards help them in many ways including increasing business output, retaining and engaging their top performers, etc. and so are investing huge amounts of money and resources on these programs.
How does India Inc. implement this concept? The latest TimesJobs study reveals interesting pointers on how Indian firms view the concept, make it work on ground and perceive its future.
Nearly 43% of the 442 employers surveyed across India by TimesJobs, have a well-built Total Rewards strategy in place and for about 23% it is in the planning stage. A Total Rewards approach helps both employer and employee to look beyond monetary rewards and strategically evaluate the value of their non-monetary rewards as well. A well-executed Total Rewards strategy helps not just in increasing employee productivity but enhancing business output as well, state employers.
“While compensation is critical in attracting new talent, as you move up the value chain, top performers need to be engaged and motivated in order to be retained – this is where a robust Total Rewards program creates the cutting edge differentiator for the organization.” Says Nilanjan Roy, Head of Strategy, Times Business Solutions.
Retaining employees has been stated as the key benefit of a Total Rewards strategy by nearly 40% of the surveyed organizations, followed by employee engagement (30%), attracting potential talent (20%) and increasing business output (10%).
“In today’s cut-throat competition, Total Rewards are an employee program that no organization can afford to miss on. The Total Rewards strategies are a set of recognitions that allow a company to recognize, praise and commend hardworking employees with the aim of sustaining a motivated and engaged workforce,” says Zubin Zack, director & chief recognition strategist, O. C. Tanner India.
For nearly 50% organizations the most important aspect while executing a Total Rewards strategy is aligning it with business objectives. Another 25% feel that effective communication at each stage of implementing the program is crucial to its success.
However, a critical issue that many organizations don’t understand is that communication is a two-way process and organizations often neglect the importance of listening to the employees’ voice. This is one of the key reasons, which results in failure of the Total Rewards program.
In fact, another TimesJobs study had revealed that nearly 87% employees prefer a customized compensation structure and organizations need to take such feedback into account while designing their Total Rewards and benefits packages.
Sanchayan Paul, Head of performance, rewards & recognition, Vodafone India agrees and says, “You must have a broad understanding of different employee segments and their needs. Then, try to personalize and simplify it.”
Nearly 40% organizations stated lack of awareness and communication about Total Rewards as the biggest barrier in effective implementation of the program, followed by lack of support from leaders (25%).
“Total Rewards need effective management to suit both business goals and employee needs and thus awareness among employees, employee feedback and leadership support is imperative for the success of this program,” says Nilanjan Roy, Head of Strategy, Times Business Solutions.
Nearly 25% of the survey respondents also felt that budget constraints possess a big challenge in execution of the Total Rewards strategy, while 10% felt cultural barriers are the stumbling block to effective implementation.
The survey results suggest considerable changes in the Total Rewards landscape and that it is evolving continuously. India Inc. thus requires a holistic approach for effective and efficient implementation of this program.
The results also point out some critical areas where the organizations need to improve their efforts. The primary one among them is, creating an effective two-way communication channel with the employees who are the ultimate beneficiaries of a company’s Total Rewards program.
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