A new approach to total reward
The historical total reward approach provided employees with a blend of monetary and non-monetary rewards using a traditional ‘top-down’ mechanism. In the future, we expect to see a personalised, bottom-up approach that uses total reward as a vehicle to deliver total wellness.
PwC’s ‘total wellness’ approach bridges the gap between employee preferences and the total reward offering, placing the individual employee at the centre of a reframed, broad and flexible approach to the total reward equation.
Implementing this approach that enhances total wellness by aligning reward to physical, emotional, mental, social, career and financial wellness, powered by an exceptional employee experience that leverages a company’s culture and leadership, will enable organisations to attract, engage and retain top talent.
Financial rewards will always be important, but employers need to do more to align non-financial rewards with employee preferences and needs. Employers must understand preferences at an individual level, with the list of options reflecting an understanding of the wellness needs of each employee, not just employee groups.
Key questions
In this context, there are five key questions leading organisations should ask themselves:
- Does our total reward strategy promote the total wellness of employees?
- Are we effectively engaging and retaining our top talent?
- How does our total reward strategy deliver on total wellness in a way that enhances workforce productivity?
- What is the return on our reward investment?
- Are we considering employee preferences in our total reward decisions?
