Cookie-cutter pay packages will have to adapt
May 17, 2010 — When it comes to employee compensation and benefits, being fair and consistent are key requirements. The idea of customized rewards packages is not readily welcomed by human resources or line managers. It is, after all, easier to treat all employees the same. Making ‘special deals’ requires time, positive intention, creative thinking and discussions that many managers and HR practitioners have little experience or comfort with. But that’s exactly what is needed in order to effectively attract, motivate and retain the talent needed for organizational success, according to a new WorldatWork research report, “Beyond Compensation: How Employees Prioritize Total Rewards at Various Life Stages.” Next Generation Consulting (NGC) and Dieringer Research Group conducted the survey through a research grant from WorldatWork. The research was presented for the first time during a workshop at the WorldatWork Total Rewards Conference and Exhibition (Grapevine, TX, May 17-19).
Data from 678 survey respondents show that respondents value different rewards at different stages of life. These rewards go beyond compensation and include benefits, work-life, career development and recognition.
“Smart managers invest the time and energy to understand, design, negotiate and monitor a customized arrangement as a means to retain top talent,” said Ryan Johnson, CCP, vice president of publishing and research at WorldatWork. “A one-size-fits-all approach no longer works given the increasing diversity of today’s workforce.”
• Work-life is significantly more important for women with young children
• Benefits are significantly more important for breadwinners, particularly female breadwinners who are further along in their careers
• Development is significantly more important for young employees (under 40) who are not yet supervisors
• Older employees value benefits more; younger employees value work-life, career development more
About the Research
The findings in this research are based on a multi-method process that included a random-digit dialed telephone survey of 300 U.S. adults (conducted by Dieringer Research Group) and a web survey of 378 adults from a pre-selected panel of professionals aged 20-40 who periodically complete NGC surveys. Data were collected at the end of 2008 and analyzed in 2009.
The Total Rewards Association
WorldatWork (www.worldatwork.org) is a global human resources association focused on compensation, benefits, work-life and integrated total rewards to attract, motivate and retain a talented workforce. Founded in 1955, WorldatWork provides a network of nearly 30,000 members in more than 100 countries with training, certification, research, conferences and community. It has offices in Scottsdale, Arizona and Washington, D.C.
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