Rethinking Employee Rewards With Health and Wellness
In the global economy today, retention of exceptional workers is an arduous task for HR personnels.
Recognition and reward programs have been shown to be important in this context, in fact, going by Gallup's position, 81 percent of workers would not seek to be in another employee if they are well recognized.
While 90 percent of employers declare they have programs for employees, the major reason workers quit their work is because they are not well rewarded and recognized for their efforts. With this credible evidence, it is glaring that the rewards and recognition programs of today do not meet the expectation of the modern workforce.
Organizations that understand this are enjoying the benefits. The SRHM survey has shown that companies with well-thought reward and recognition programs enjoy 23 percent lower employee turnover on the average, then retention level in companies with no concrete reward program.
Now, let's give the effects of employee turnover, changing workplace expectations, and simple strategies that can be adopted in giving employee reward and recognition programs a close look.
How Reward and Recognition differ
Though the meaning of these words is often considered interchangeably, they differ from each other. Recognition is impalpable, represented in relationships and usually experienced. It is personal generally and implies one employee celebrating the personality and effort of another person.
On the other hand, rewards can be held, transactional, and used to amplify some results. An HR personally in the know who make sure these are included meaningfully to satisfy their multi-generational workforce.
Recognition and reward programs keep failing
With only 13 percent of the world workforce active, it is glaring that most employers are not getting rewards and recognition that make them happy, healthy and productive in their work.
Companies that offer employee recognition program with outstanding rewards attached to the achievement of certain successes are enjoying the benefits of an encouraged, motivated and active workforce.
The looming talent shortage will only make the situation worse
Companies failing in the optimization of their employee recognition and reward program will not fare well in the competition. In the market with increasing competition, players have become the ultimate differentiator, and HR leaders can't help this. In fact, it is expected that by 2018, 60 percent of positions in the market will require skills in which 20 percent of the population will be proficient in.
Companies should understand how employee recognition, reward, and sustained profitability are directly related.
If reward and recognition are well put in place, employee turnover will be reduced since the employee is 81 percent less likely to seek another employee when properly rewarded and recognized. It is understood that generally, the cost of getting an employee replaced far exceeds and employees annual salary.
Emphatically, at the average salary of $35,000, if 25 percent of the labor force of a company leaves; it would cost a company with 100 employees $438,000 to $4 million to replace employees annually.
With these figures associated with employee turnover, the importance of recognition is more established.
Wise HR personnels understand this and ensure that meaningful employee recognition and reward programs are developed.
Advantages of employee recognition and reward are beyond employee turnover. Gallup report shows that 87 percent of employees feel recognition and reward programs affect their performance while 70 percent declare that they will put more effort if recognition and reward program is getting better.
Workplace demographics and Changing Expectations
Five generation are present in the labor force of today, each having its own preferences when it comes to recognition.
This is well defined in the millennial generation -- millennials being offsprings of baby boomers now constitute 50 percent of the labor force-- skyrocket to 75 percent by 2025.
At the back of this generation is Generation Z, who are grown adults just entering twenty. They are familiar with mobile technology since their toddler years.
Let's see the changes occurring as a result of the growing demographic shift.
Going by the position of the World Health Organization, health is state of complete physical, mental, and social well-being and not merely the absence of disease or infirmity".
This is not wrong in today's labor force where health is view holistically and as an integral aspect of life. The health programs treasured now is better than the traditional package for mental health, fitness, and osteopath. In fact, millennials are more health conscious than other generations before it as they focused on prevention than cure.
As a result, companies that know this are including sound health packages in their reward programs.
High Frequency is now normal
With numerous employment alternative available, employees expect more from their employers.
Companies that want to get millennials should understand that they want regular feedback, efficient communication and rewards to be more productive in the roles.
The study by the Center for Generational Kinetics 2016 shows that 42 percent of millennials expect feedback in each week. This is higher than other generations.
Therefore, your company's must develop an 'always on' employee recognition and reward program that celebrates every success of the employees.
Personalization is very important
People crave flexibility in their life more nowadays. This is seen in the way employees perform their duties at work in expectation of instant gratification. Bear it in mind that each employee has his preferences about reward and recognition programs. Some want to be recognized in the presence of others while others want to be recognized in private. Further, some employees are spurred by vacation time, yoga classes etc. With the fact that only 22 percent of employees are recognized regularly, any approach adopted will be welcomed.
Harness the power of digital technology
Technology is important to every Dick, Tom and Harry. This also include your multigenerational labor force.
As the HR leader, you can develop formal and informal programs to make recognition possible. These programs will only be implemented according to the preference of each employee.
To start, understand how the present employee recognition program fare and make sure it fine-tuned in agreement with the culture and values of your organization.
Also, you need to know the place, frequency, and manner in which it will implemented (say verbal, or by hand written notes).
A great approach at designing best practices having understood the situation of the workforce nowadays, is by organizing a study/survey on a population of employees to get new insights.
Rewards as product of the creativity of HR leaders are elements that must agree with the birthed recognition program and be implemented an employee achieves success or behaves exceptionally.
With the fact that rewards must meet the specific needs of your employees, choose the rewards that will make organization green in your employees' memory.
In the current world, employees can work on the fly with the help of digital technology. Though recognition made in person is the best, rewards can be administered digitally.
Employ a mobile technology in the building of an offline network of employees at different locations. With this, cohesion is created and behaviour amplified in the multi-generational team.
Make sure your managers understand the importance, reason and effect of the developed. Importantly, make sure reward and recognition is separated from regular compensation. Because the rewards and recognition show your love for the employee in person.
The Big Picture
Begin by knowing how your winning strategy agree with your company goals and knowing how to implement them for attraction exceptional employees.
Draw a budget and get the support of management having made sure they understand the purpose of the program.
Carefully, think of the best method in measuring success and let the manager be aware. Make statistics that establish the effectiveness of the program available.
Know the employee behaviour that agree with business goals and corporate values. This make your program more credible as a guide to achieve success is created. Making use of performance indicators, you will know when to award recognition and give rewards. Everyone in the organization must be aware if the standard for which recognitions and reward will be given.
Decide on Frequency
Decide if the program will be monthly, weekly or quarterly and make use of technology to make sure it is seamless and always. The program must be administered at every point in the employee lifecycle.
Creatively catch everyone's attention by incorporating the elements of the program in your brand marketing processes.
Provide Specialized Training
You need to train your employees on the power of alignment, best practices, and how to represent the progress of the program on reporting tools. Make them understand how your programs will impact the company as a whole.
Empower all levels of management
Engaged all management personnels in the delivery of recognition and reward program since they have been involved from the onset. Make sure there is no bureaucracy in the process.
Make sure everyone is aware of new changes in the recognition and rewards program.
Implement Employee Survey
Using the instrument of statistics like study or survey, ensure that necessary adjustment are made review the result obtained with the management.
Getting a good reward system for can be difficult, but with League Lifestyle Spending Accounts (LSAs) it is easy. We offer myriads of health programs suitable for multigenerational labour force. This help attract and retain the best hands you would want to let go.
Engaging LSAs goes with the need for flexibility and choice and help administer reward packages that will be easy for employee to enjoy since it is digitalized. LSA gives you a myriad of reward items and reimburse expenses for personal wellness. We allow give room for the personal development and treatments bit available in traditional health plans.
Athletic attire, Gym memberships, Health coaching, Athletic therapy, Personal training, Pilates, Ski passes, Yoga
Art therapy, Counselling therapist, Meditation and Mindfulness, Marriage and family, Therapist
Food delivery, Vitamins and Supplements, Nutritionist
Doula services, Lamaze classes, Midwife services, Prenatal yoga classes, In vitro treatments
Continuing education courses, Life coaching, Seminars and Conferences, Professional memberships and exam fees, Language training
Osteopathy, Holistic healing, Personalized medicine, Non-traditional healing, Professional prostheses, Programs for quitting smoking, Weight loss programs, Nutrition counselling, Sleep assessment, Foot care
Child and elder care services, First aid and CPR training, Monthly transit passes, Hair replacement, Teeth whitening, Dog walker services, Sunscreen
Simply allocate an amount of money for each employee according to the achievement you want to reward, ensuring that you pay only for what is being used.
Employee make expenses on health and wellness known through the League app or get immediate reimbursement for them by booking services the League health marketplace.
At ease, keep the account topped up while everything is well organized! Really easy, isn't it?
Take 2 minutes to discover how much you can
save with ThinkTank's custom solutions.
ThinkTank Insurance Partners, Inc.
18521 Spring Creek Rd Unit B.
Tinley Park, IL 60477
© 2019 ThinkTank Insurance Partners, Inc.