But there are more meaningful rewards for employees than just cash. Recognition and taking the time to really understand what they value and what they need is sometimes the best motivation.
Which reward category has the biggest impact on work engagement?
When considering the reward category that is likely to have the biggest impact on work engagement, it is tempting to respond with “Money”. However, research into motivation and engagement over the decades has tended to show that while money will engage people up to a point, other reward categories are needed to maintain and drive genuine engagement with work. Studies show that helping people grow and recognizing their achievements can be far more rewarding than cash incentives. These types of intrinsic motivators are often more meaningful for people than money. However, getting the balance right will differ for each person. Some people are driven more by money than others, while some will be far more engaged by the challenge of new projects, and the personal growth that they gain from working on something novel and gaining new skills. Overall, it is best to consider the total reward strategy in the case of each person, which should take the value of every element of a reward package into account, and must include everything that staff value about their work.
How does digitization benefit the compensation plan management?
Digitization brings about various benefits to compensation plan management. One of the most obvious is the fact that it increases efficiency. It is also possible to compare compensation packages much more quickly with digitized records. Critically, this makes it easier to make informed decisions. In addition, it is possible to make changes within digitized versions of compensation plans, and see what they will look like, to see the impact on the overall budget. Digitization makes it possible to visualize the financial consequences of making salary and compensation package adjustments. Overall, what all of this does is it helps to provide greater management control over compensation plan management.
Total Rewards vs. Compensations and Benefits: what is the formula to organizational success?
When trying to decide what to focus on for organizational success, companies often find themselves choosing between total rewards or compensation and benefits. There is no “one size fits all” formula for organizational success, unfortunately, but following a total reward strategy is arguably better than a narrower emphasis just on compensation and benefits. This is because compensation and benefits are very monetary-focused, while engagement is likely to be driven by much more than this. Employee engagement is tied to productivity, customer satisfaction, fewer accidents, lower absenteeism, and employee turnover and profitability. Thus, engaging employees is key to organizational success, and if total rewards are most likely to be engaging, then this would appear to be the path to opt for. Consideration of total reward is so much more than compensation and benefits, and takes into account everything that the employee finds of value at work, so this is likely to be the best formula.
Ali Khaled ALHASHMI, SVP & Head of Human Resources & Centre of Excellence Group at Union National Bank is a winner of several notable awards such as Happiness Champion of the Year 2018, Human Resources Executive of the Year at the International Business Awards 2017, HR Leadership Award at the GCC Best Employer Brand Awards 2017, HR Professional of the Year at HR Excellence Award 2017, and 100 most influential Global HR Leaders at the World HRD Congress 2018.
Mr. Alhashmi is a published author, public speaker and a passionate Human Resources specialist with more than 20 years of leadership and professional development experience. He brings a rare ability to apply an entrepreneurial approach to organizational challenges, delivering transformational and sustainable change to large and small businesses alike. He is well known as a catalyst for transformational change, spearheading the use of innovative HR management techniques combined with digitalization to deliver lasting results, particularly with employee engagement.