Organisations should take account of career opportunities as well as pay and benefits when setting their employee reward strategies.
David Conroy, a partner at Mercer Human Resource Consulting, said employers tend to think in boxes when assessing pay and reward.
Taking a more holistic view of pay, benefits and careers allows organisations to incorporate issues such as training, development and work-life balance into the employee reward package, he said.
“Providing employees with a clearly defined career path together with choice and softer rewards such as flexible working can make a difference to how workers view their relationship with their employer,” said Conroy.
“By boosting employee motivation, productivity and retention, total reward can produce real cost savings.”
Conroy said for total rewards to successfully contribute to business objectives, organisations must consider the needs of all employees and ensure that what is available is communicated effectively.