A few weeks ago, I read an article that cited a random survey about what employees want from their employer. It stated that 63% of those surveyed consider total compensation a very important factor of their employment. I couldn't help but wonder - are we getting what we should out of that 63%?
When I think about total compensation, elements of pay such as salary and bonuses come to mind, as do the traditional benefits that make up the total compensation (or total rewards) package. However, if I broaden my definition a bit, that package also includes everything of value that the organization provides its employees. And that’s where the true differentiation occurs.
Back a generation or two, health insurance and retirement plans were main benefits used to attract and retain employees. Fast forward to today and those benefits are expected to be offered at a minimum, in addition to several other health and wellness programs. To stand out from the sea of employers who offer competitive benefits, you need to get creative.
Creative Components of Total Compensation
I’ve included my favorite creative ideas to consider to strengthen your benefit program.
Reimbursement for work-at-home expenses – hybrid work arrangements are the new normal, so offices need to be duplicated at home
Financial wellness programs – beyond physical and mental wellbeing, financial wellness programs alleviate financial stress for employees
Student loan assistance – debt from education expenses is as high as it’s ever been for those with college degrees; programs to help employees pay that debt are attractive to younger workers
Unlimited or flexible paid time off – the idea here is to take time off when you need it, and there’s no minimum or maximum amount granted
Four-day workweek – this isn’t about working four 10-hour shifts, rather this is simply reducing the workweek to 4 days instead of 5 with the expectation of the same amount of work being done more efficiently (applicable to salaried positions)
Flexibility in start/end times and work location – given the flexibility required over the last couple years, employees have come to like (and in some cases expect) flexibility requiring where and when work is done
Paid parental leave – organizations are moving toward adding in some paid leave time for births/adoptions which extends beyond normal sick and vacation time already provided
Sabbaticals for long-term employees – as a reward for long tenure, organizations offer additional time off in the form of a sabbatical for employees to take a month (or more) away from work
ID theft protection – with cybersecurity continuing to be a threat, this benefit provides protection to employees’ identity
Pet insurance & pawternity leave – as a benefit for employees with pets, pet insurance and pawternity leave (think maternity leave, but instead time to bond with the pet) provide assistance for employees with pets
Childcare assistance – actual dollars given to employees to off-set the cost of childcare; gained renewed attention with the shift to remote work (which can be complicated by children at home)
Commuter benefit – higher gas prices combined with the desire to live and work in separate locations have lengthened some commutes; this benefit provides money to employees to offset commuting costs
Cleaning service – in an effort to make their home lives easier, organizations have offered a monthly stipend toward home cleaning services
Total Compensation Benefits to Meet Your Coop’s Needs
These ideas and other creative benefits that employers offer are above and beyond the traditional ones organizations have offered for years.
But which ones do you select to compliment your total compensation package?
- Examine the cost of the benefit, to both the employee and cooperative.
- Assess the value the benefit brings. A simple online employee survey can do wonders at understanding what benefits your employees truly value.
- Consider the percentage of employees who will actually use the benefit.
Bottom line: The benefits offered need to be relevant and applicable to your population (or at least a good share of it), otherwise they are just an additional cost. And nobody’s got time for that.