This year, only 33 percent of respondents to the Global Human Capital Trends survey felt that their organizations were ready or very ready to address the issue of rewards, and only 11 percent of respondents believed that their rewards strategy was highly aligned with their organization’s goals.

We believe that many organizations are stuck in old-fashioned thinking: they see labor as a cost, not an asset, so they keep wages and associated spending on labor down.[i] This philosophy might help organizations meet short-term financial targets. However, as the global survey shows, the need to reskill people, restructure work, and improve the workforce experience is now paramount. When asking workers what is important to them, the No. 1 answer is not money but the value of the work to them.[ii]

The frequent lack of alignment between organizational strategy and rewards means that many organizations must step back and refresh their rewards approach. Rather than relying on benchmarking, organizations should embed their rewards strategies in their organization’s unique culture and objectives and focus on curating employment brands that highlight how their rewards are different from those of their competitors. The latest research by Bersin™ tells us that high-performing organizations are six times more likely to use data and analysis to understand the rewards preferences of their workers compared with their lower-performing counterparts.[iii]

While understanding what workers want is one part of the equation, the other part of a winning rewards strategy is to make sure that people understand what they are getting. Here, organizations need to do a better job of explaining their rewards to workers, it is an essential part of the dialogue around rewards that organizations should maintain with their workers to understand their needs and articulate the organization’s efforts to meet them.

In the world of the social enterprise, where workers are seeking deeper meaning in their work and organizations are striving to create a greater human connection with their workers, rewards can be either an incredible motivator or a topic of contentious debate. To help avoid the latter, organizations must expand their view of rewards, engage their workers, and enter a new world of work where perks and pay are just the beginning.

 

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Should you wish to have more information on rewards, you can read the full article at: https://www2.deloitte.com/insights/us/en/focus/human-capital-trends/2019/rewards-employees-want-most.html or contact Karine Pontet, Director Operations Excellence and Human Capital Advisory (kpontet@deloitte.lu).

To access the full 2019 Human Capital Trends report, please download it here: https://www2.deloitte.com/lu/en/pages/human-capital/articles/human-capital-trends-2019.html#1

Look out for our next article “Future of HR: Accessing talent” to understand how organizations can face and recruit in the current talent-constrained labour market by leveraging new technology and internal/alternative resources.

 

Article by Deloitte Luxembourg

 

[i] Josh Bersin, “Why aren’t wages keeping up? It’s not the economy, it’s management,” Forbes, October 31, 2018

[ii] Josh Bersin, “New research shows ‘heavy learners’ more confident, successful, and happy at work,” LinkedIn, November 10, 2018

[iii] Pete DeBellis, Surveying employee preferences for rewards: A primer, Bersin™, Deloitte Consulting LLP, 2018


Publié le 14 juin 2019