1 VIRTUAL FUTURECAST Total Rewards Strategies for the Multigenerational Workforce STACY STRAUSER, CCP, DIR. COMPENSATION CONSULTING, ONEDIGITAL CARRIE BARTLETT, SR. CLIENT EXECUTIVE, ONEDIGITAL
2 Current State VIRTUAL FUTURECAST National unemployment rate is at 3.8%
3 Defining Total Rewards VIRTUAL FUTURECAST Right BALANCE of Comfortable and Personal and Professional Career MOBILITY compensation and COLLABORATIVE GROWTH opportunities benefits work environment
4 Example $60,675 Total Compensation Package VIRTUAL FUTURECAST On-Site Gym and 5 weeks PTO Professional Bonus Structure Free Parking Base Salary Health Insurance Development Cafeteria $3,000 for $40,000 approx. $300/mo Activities performance and or $3,600/yr 5% annually
5 Components of Total Rewards 01 Compensation Improve recruitment Showcase your organization’s culture 02 VIRTUAL FUTURECAST 05 Benefits Development Increase employee engagement and satisfaction 03 Increase retention 04 Work-Life Performance and Recognition
6 1. Compensation BASE PAY KEY FACT “75% of executives believe that in the next decade, in COMMISSIONS order to recruit and retain talent, compensation alone PREMIUM PAY will not be enough.” Covestro VIRTUAL FUTURECAST DIRECT “More than 60% of employees would COMPENSATION take a job with a lower salary for better benefits.” | Zenefits INCENTIVES & ALLOWANCES BONUSES
7 2. Benefits KEY FACT “89% of millennials prioritize benefits over pay raises, and 83% of millennials would change their job for better benefits. Forbes “Employees who are very satisfied with benefits are almost 4x more likely to be VIRTUAL FUTURECAST very satisfied with their jobs.”| MetLife “78% of employees want a greater variety of benefits to choose from. 80% of employees would value benefits customized to individual circumstances and age.”| MetLife
8 3. Work-Life “ 83% of millennials are willing to make a job change based on family/lifestyle benefits. In addition, 41% of working parents say a lack of family assistance-related benefits have even negatively impacted their work performance. | Care.com VIRTUAL FUTURECAST “ 75% of employers believe that caregiving benefits will become more important to their companies over the next five years | SRHM
9 4. Performance and Recognition MOST IMPORTANT DRIVERS OF GREAT WORK "Train me" "I don't know" 6% "Give me a 0% promotion" 4% Other 6% "Reognize me" 38% VIRTUAL FUTURECAST "Pay me more" 7% "Give me autonomy" 12% "Inspire me" Nothing: I'm self- 13% motivated" 14%
10 5. Development CAREER PATH OPTIONS VIRTUAL FUTURECAST
11 VIRTUAL FUTURECAST What do employees want? A look at our “new norm” – the multigenerational workforce
12 Who ARE They? Remember it takes all types, and a one-size-fits-all program will fail unless you understand what motivates your employees VIRTUAL FUTURECAST • Want to be valued and • Pragmatic and skeptical • Raised by Boomers to of leadership believe they are smart needed and special • Value autonomy and • Optimistic and loyal • Demand recognition work-life balance • Need to feel engaged • Value work-life balance • Do not like to be and respected and working with others micromanaged and tend who are innovative, to push back on rules intelligent, tech-savvy, and social • Will disengage if they • Desire flexibility feel slighted One common thread: Everyone generally craves respect and feels more engaged when they are included in the progress and growth of their organization. We all hunger to learn and express our potential and we all need feedback as to how we’re performing. 1 1 How to Reward a Multigenerational Workforce, Coreaxis, 2016.
13 What Do They Want? Remember it takes all types, and a one-size-fits-all program will fail unless you understand what motivates your employees VIRTUAL FUTURECAST • Health and wellness • Flexible work • Flexible work arrangements benefits arrangements • Strong medical coverage • Technology educational • Tuition reimbursement opportunities or assistance • Networking opportunities and • Retirement • Career path and growth opportunities to gain contributions • Casual dress new skills • Voluntary benefits • Convenience perks and benefits Recognize and Reward – Tailor and adjust your programs to your workforce’s needs Acknowledge Shared Needs – Everyone wants to learn, be respected, and feel included Engage, Engage, Engage – Create a sense of teamwork that spans generations
14 Competitive Rewards Packages VIRTUAL FUTURECAST Employers like The Walt Disney Company, McDonald’s and Chick -fil-A focused on education, providing employer sponsored dollars towards tuition and continuing education programs.
15 2019 Total Rewards Trends HEALTH FINANCIAL COMMUNITY SOCIAL & PURPOSE VIRTUAL FUTURECAST • • EMOTIONAL • Higher variable pay Time off to • Continued Paid Parental budgets and increased volunteer growth of Leave programs • Mental health focus on pay for telehealth performance benefits and services support • Focus on market- competitive pay • Hyper- • Student loan personalized repayment/refinance communication • Tuition reimbursement and continued education opportunities • Financial Wellness Education
16 Employers Have Difficulty Communicating Total Rewards How To? Why? This competitive economic climate requires Design Assess a communications strategy Research and understand your organization’s current rewards VIRTUAL FUTURECAST Create content, utilize graphics, programs devise tactical plan A multigenerational workforce calls for Survey and interview employees targeted messaging Execute Benefits complexity leads to employees Evaluate being lost Focus communications on Measure and monitor changing behaviors vs. delivering information
17 In Summary… Total Rewards Strategy Employee Business Compensation Attract Motivate Retain Benefits VIRTUAL FUTURECAST Performance Satisfaction & Engagements & Results Work-Life Performance & Recognition Development & Career Opportunities
18 VIRTUAL FUTURECAST Questions? STACY STRAUSER, CCP, DIR. COMPENSATION CONSULTING, ONEDIGITAL HRC CARRIE P. BARTLETT, SR. CLIENT EXECUTIVE, ONEDIGITAL
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