Within the past three years, approximately 40 percent have been promoting employee well-being—and 80 percent expect employee well-being to increase in importance over the next three years,. (Photo: Shutterstock)
It's hard to find good talent these days–not only are employers competing on salary and benefits, but today's younger workers are interviewing their employer almost as much as the employer is interviewing them.
But they're getting it, albeit slowly. According to a new survey from Willis Towers Watson, more employers are bolstering their total rewards programs to attract and keep talent. Such programs can include not just compensation and health and well-being programs, but also retirement and financial benefits, flexible work programs, recognition programs, learning and development opportunities and career opportunities.
It sounds great on paper, but it's a little harder to execute. With so many moving parts, and with so much at stake, just 49 percent of employers reported they understand which total rewards offerings their current employees value. And only 47 percent know which components potential candidates value.
When it comes to recruiting, 54 percent are struggling to hire employees with critical skills, while 49 percent say they're having a tough time bringing in high-potential employees.
Still, they're mixing things up on the rewards front, with 66 percent saying they've made at least one change to their program; among those who haven't already done so, two out of three are considering doing so this year, with the other third considering changes over the next three years.
“Given the ongoing changes taking place in today's work environment, employers are under mounting pressure to rethink their approach to total rewards and move beyond the status quo,” Adrienne Altman, North America Rewards leader, Willis Towers Watson, says.
So what are they changing? Flexibility, with 61 percent considering making it easier on employees with regard to benefits, working arrangements and career options either this year or within three years.
And within the past three years, approximately 40 percent have been promoting employee well-being—and 80 percent expect employee well-being to increase in importance over the next three years, which is driving most employers to say they're considering changes to help promote employee well-being over that time period.
Then there's personalized communication, with 67 percent of bosses expecting to improve that either this year or within the next three years; 13 percent have already tackled that.
The technology that administers benefits is getting a facelift, too, with 60 percent of employers saying they're working on that either this year or will within the next three years; 27 percent have already done so. Fifty percent expect to improve the tech for employees to use this year, while 37 percent say they've already done that.
And pay transparency is also an issue, with 64 percent considering taking steps to improve it either this year or within three years; 19 percent have already done so.
Changes are probably (over)due, since only 51 percent of respondents even believe they provide their employees with a good work/life balance. In addition, just 53 percent say they design their total rewards program to help employees achieve well-being. Similarly, 53 percent say they provide meaningful choice within their benefit program, and 55 percent believe their programs provide a consumer-grade experience.
“We recommend employers carefully evaluate their overall strategy, gain a better understanding of what employees and prospects value and ensure they have the right technology and tools to deliver a consumer-grade experience to their employees,” Altman says.
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Marlene Satter
Marlene Y. Satter has worked in and written about the financial industry for decades.
