benefits

Integrated Rewards Strategy for Planning Employee Benefits 

Some employers prefer to set their benefits and compensation at the competitive market average while others fix it at different percentiles above the given average. The benchmark is based on the general strategy of the company. There are many mature organizations who take a broadminded position on the benefit programs integrated with their reward strategy.  An emergent organization may focus more on short-term variable rewards plan to safeguard resources.

An integrated rewards strategy offers benefits to both the employees and the employers. Some of them

It allows employers to drive organizational success by way of better talent attraction, commitment and retention

  • Forms a guide for investment decisions while enabling informed options for the employee
  • Helps to elucidate employer-employee relationship
  • It can aid create a distinctive employment brand
  • Integrated rewards approach can enhance the return on rewards and generate better enterprise value.

It is seen that often the environment in which employee benefits works in erratic and for strategic reasons, it is important to ensure a systematic process when planning, designing and administrating employees’ benefits. Moderate to high rewards with uncertain expectations can lead to a culture of prerogative, which can result in poor performance and attrition.

Low rewards with high expectations is a talent deterrent.

-by HiFives

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