Is it time to rethink your rewards strategy?

Perks and benefits are a great way to sow loyalty and keep staff happy and engaged. However, to be effective, employers should make sure their strategy is relevant to their workforce.

With talent shortages persisting, organisations should look to create a strong rewards system that recognises the needs of workers.

“There’s a risk that companies may make short-sighted decisions here as the talent market continues to tighten,” said Perkbox CPO Mona Akiki.

“Global HR leaders who may have looked to companies like Apple, Google and Microsoft for cues on how to position their workplace offering, are now realising now more than ever, it’s not a one size fits all.”

According to Perkbox, 59 per cent of Australians are considering quitting their roles in 2023. Meanwhile, 56 per cent said they were confident they would be able to find a new job.

With this in mind, organisations should look to curate a rewards plan that is relevant to their specific workplace. As Dr Patrick Aouad said to HR Leader, by taking the time to actually listen and engage with employees, you can better form a strategy that recognises their opinion.

Ms Akiki continued: “The global shift to flexibility and remote working following the COVID-19 pandemic has put the emphasis on increasing a sense of belonging. Employers are wanting to find ways in which to connect their people to their purpose, and employees, in return, are more than ever considering a company’s mission and purpose before applying for a job.”

“Along with a strong sense of purpose, employees want to stay in organisations where they feel recognised and appreciated. Employees are prone to feeling undervalued when a lot of their work now is conducted outside of the office and possibly away from the direct view of a manager.”

Ms Akiki said that employers could stay ahead by putting the energy and resources into a rewards plan, as it will pay off in the long run.

“Forward-thinking companies are quickly realising that reallocating existing budgets to a reward strategy that emphases their mission, purpose and values will provide them with a better return on that investment,” explained Ms Akiki.

“A well thought out reward strategy should coincide with a broader discussion of what the company is trying to achieve as well as the behaviours required of its employees to get there. Simply put, it should be built with the objective of aligning people to purpose.”

Jack Campbell

Jack is the editor at HR Leader.