What is a total rewards benefits package?
If you want to attract and retain the next generation of employee talent to your company, you must be competitive — especially in a tight labor market like this one.
Being competitive today means more than just offering great pay and health insurance; it also means providing a solid work culture and a range of non-monetary benefits, such as flexible schedules, remote work and mentoring programs. It also means finding new ways to clearly communicate all those perks to workers.
A total rewards benefits package is a holistic way of showing an employee the value you see in them, and illustrating the true investment you’re making in their future with your company. It means grouping and presenting your compensation and benefits as a whole, so an employee can see the full scope of your benefits package in one place.
The advantages of presenting your benefits this way include:
- More success in new employee recruitment.
- Improved employee retention rates.
- More engaged and motivated employees.
- Increased usage of company benefit programs.
Whether you're building your company's benefits package or a jobseeker evaluating one, here's what to look for.
What does a total rewards benefits package include?
When it comes to presenting your benefits to an employee, feel free to experiment with the format; the important thing is that you account for all the financial and non-monetary benefits you offer, and show how they work together to support the employee’s well-being.
Elements you may wish to include in your total reward package fall into five broad categories:
Compensation
- Base and variable pay.
- Commissions.
- Incentives and performance bonuses.
Monetary benefits
- Health, dental and vision insurance.
- Pensions and retirement benefits.
- Life and disability insurance.
- Stock options.
Career and development opportunities
- A recognized path for advancement.
- Employee recognition programs and awards.
- Goal-specific awards.
- Coaching and mentoring opportunities.
- On-the-job training and learning opportunities.
- Tuition reimbursement or loan repayment.
Work-life balance
- Paid time off and holidays.
- Flexible schedules.
- Remote working.
- Support for caring for family members (parental leave).
- Corporate volunteer opportunities.
- Paid time for individual volunteerism.
- Sabbaticals and other extended leave programs.
Employee wellness
- Employee assistance program (EAP).
- Company-purchased meals and snacks.
- Gym memberships and discounts.
- On-site fitness opportunities.
- Outdoor recreation breaks.
How do I value my total rewards benefits package?
For many companies using the total rewards model, the goal is to get to a “total compensation” number that gives an employee an accurate picture of their value to the company.It’s certainly easier to put numbers to the compensation and monetary portion of your benefits package, rather than the quality-of-life items, but that doesn’t mean it’s impossible.
Consider including the cost of the different career development programs, awards and wellness opportunities your company offers. You can also use company averages for things like volunteer and coaching hours to illustrate their approximate value to the employee. Just be careful about inflating your program’s value when trying to put a single number to it; experts say that employees see through attempts to overemphasize value if they don’t feel positively impacted.
How do I share my total benefits rewards package?
When you share your company’s benefits package is up to you, but it’s recommended you share the complete listing with candidates during the hiring process, and then at least annually with employees as part of your performance review process.It can be shared simply as a document, or reviewed as part of a one-on-one meeting with the employee’s manager or a member of the human resources team.
Here at UFG Insurance, we offer a total rewards benefits package that encompasses elements of all five categories above. It’s part of our mission to create paths to success for all our employees, and we welcome you to learn more about our newest opportunities at our careers page.
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