Total Rewards are all the tools available to an employer that are used to attract, retain and motivate employees.  They evolve from the corporate strategy and purpose and to be most effective aligned with your employee’s needs as well.  Typically, we think of Total Rewards elements individually but once we start looking at them as a whole, we are able to create more meaningful rewards that support an organization in meeting its goals.

Elements of Total Rewards include all aspects of:

• Compensation such as base pay or incentives
• Benefits that an employer uses to complement the compensation an employee receives
• Work-life initiatives with a specific set of organizational practices, policies or programs that support employees achieve success in their professional and personal lives
• Performance and recognition in which performance is the alignment and assessment of individual and team efforts measured against the achievement of business goals, while recognition provides attention to employees actions, behaviours and/or results for meeting objectives
• Development and career opportunities comprise of learning experiences designed to enhance an employee’s skills and competencies which in turn support their career opportunities to support the evolution of the company and the employee’s career goals

Compensation appears to steal the limelight and most likely is the biggest expense to business owners. However, Benefits is an aspect of Total Rewards that employees and employers may take for granted and they deserve significantly much more attention as they provide us and our loved ones with current and future protection.   Communicating all aspects of Benefits to your employees helps them understand the value that Benefits bring and how you are supporting your employees in your desire to be “Employer of Choice”.

For maximum communication benefit, the information provided to employees should identify that Benefits are designed to provide income protection.  There are aspects you think of instantly and those you may not communicate at all.  The ones you think of instantly include:

• Health information – such prescription drugs, paramedical, medical supplies, vision, out of country, health care spending account, dental or any other aspect of your core benefits plan.
• Insurance – this could include life insurance, spousal and/or dependent life insurance, AD&D, long term disability (LTD) and short term disability (STD) and any other insurance your offer.

You may not always think of communicating the government related benefits you pay for as an employer but you should even though these benefits are regulated and mandatory as they provide future protection for your employees at shared or no cost to them.  They provide a good reminder and a very positive message.  These benefits include:

• Government related benefits such as OHIP, WSIB, EI, and CPP.

As we all live longer, develop new cures for illnesses and have busier lives, Benefits become more important to us.  Developing your Benefits plan as part of your Total Rewards Strategy and communicating them effectively enhances your ability to attract, motivate and retain talent and provides employees with the full knowledge and appreciation of what they are receiving.

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