Technology-enabled rewards optimization
Human resources analytics for enhanced total rewards programs
Deliver programs that meet changing workforce needs, manage costs, and differentiate your total rewards package to better acquire and retain talent. Get to the heart of what your employees want with rewards optimization, Deloitte’s human resources analytics tool.
- A critical advantage: Attracting talent and managing costs
- A tailored solution for a crucial issue
- Tech-enabled rewards optimization
- Satisfying today’s—and tomorrow’s—workforce
- Get in touch
Acquired from Bug Insights, rewards optimization leverages a human resources analytics tool that helps companies stand apart in a market environment where talent is a company’s most important asset. For more information, see the press release.
A critical advantage: Attracting talent and managing costs
Benefits represent an organization’s third largest expense, yet 50 percent of employees think they can get better rewards somewhere else. And organizations waste $1,500 per year per full-time employee on rewards programs employees do not value.1
So determining what employees really value from rewards programs can be a critical advantage. Gaining that competitive advantage typically relies on the organization’s ability to attract, motivate, and retain top talent, while also adapting to the needs of a changing workforce.
Our proprietary rewards optimization tool helps organizations take a strategic approach to total rewards packages. Data-driven insights can lead to more informed decision making, which can help companies better meet the needs of employees, improve retention rates, and create “simply irresistible” employee experiences. What’s more, focusing on the programs that employees value most can create greater cost efficiencies by eliminating waste and reinvesting savings.
With Deloitte’s rewards optimization tool, organizations can:
- Better understand employee preferences using actionable data obtained through conjoint analysis
- Make fact-based decisions regarding employee benefits, engagement, and loyalty
- Structure and customize their compensation, benefit, and reward programs to satisfy employee preferences while managing costs
The rewards optimization tool’s powerful data analysis yields reward packages that 70 percent to 80 percent of employees prefer over their current package.2
A tailored solution for a crucial issue
According to Deloitte’s 2017 Global Human Capital Trends Report, 81 percent of surveyed organizations identify talent acquisition as a crucial issue. And 83 percent consider the employee experience to be of paramount importance.
Despite these trends, Deloitte’s recent Total Rewards Survey revealed that:
- Only one in five organizations currently has a fully integrated rewards program
- 41 percent of respondents’ companies offered partially integrated rewards strategies
- 39 percent of respondents’ strategies weren’t integrated at all
- Costs were identified as the biggest influence on an organization’s total rewards strategy
The preferences of today’s workforce go beyond traditional rewards. Typically workers are looking for Total Relationships with an organization that offers a personalized, flexible, and customized experience, built on compensation and benefits, but differentiated by other programs, including recognition, career development, and holistic approach to wellbeing.
Tailored rewards programs can provide solutions to these obstacles. Customization can also meet the needs of a workforce that’s being transformed via demographic shifts and technological disruption.
But before customization can take place, organizations need insight into what—and who—they’re customizing for.
Tech-enabled rewards optimization
The reward optimization tool’s trade-off analysis and employee preference measurements give companies the specific information they need about their employees’ attitudes. This can empower organizations to design strategic compensation, benefits, and rewards programs, while also effectively allocating and reducing costs.
The rewards optimization tool has been able to identify packages in some cases for organizations that up to 70 percent of employees would select over what they had today by:
- Assessing employees’ preferences
- Determining the cost to deliver rewards
- Identifying the most efficient rewards plans
- Testing the impact of potential changes
This human resources analytics tool can also maximize return on investment by:
- Identifying where dollars are being overinvested in underappreciated rewards
- Pinpointing opportunities where preferences can be “purchased” more efficiently
Satisfying today’s—and tomorrow’s—workforce
The rewards optimization offering, combined with the full suite of Deloitte’s Human Capital products and services, can help you make the most of your talent investment while balancing benefits costs and risk.
In today’s marketplace, effective human capital balance sheet management is a competitive differentiator. Having the data you need to improve your total rewards investments can help you recruit, motivate, and retain today’s—and tomorrow’s—workforce.
1,2 Bug Insights 2016 Study examining Benefit Preferences of Americans