The tool can help clients learn about employee preferences and plan reward programmes accordingly.
Employee rewards programme is always a tricky one. It is very difficult to presume which reward will gratify which employee. Learning about each one’s preferences and expectations can certainly be a boon for any organisation and analytics is helping organisations to customise rewards programme as per the employee’s individual preference.
Deloitte has acquired a human resources analytics rewards optimisation offering, from Bug Insight, to help its clients optimise their talent investment and reduce benefits cost. The clients can use the analytics offering to get insights into what employees value most in their rewards programmes.
The reward analytics offering—through trade-off analysis and employee preference measurement— will help companies obtain specific information about their employees’ attitude and preferences. This will help the companies design effective and customised compensation, benefits and rewards programmes.
The analytics tool will provide data-driven insights that companies can use to allocate costs effectively and better satisfy the needs of employees.
Deloitte’s recent Total Rewards Survey revealed that only 1 in 5 organisations currently has a fully integrated rewards program. Forty-one percent of respondents’ companies offered partially integrated rewards strategies (where compensation and some rewards programs are benchmarked and designed together), and 39 percent of respondents’ strategies were not integrated at all (with compensation and benefits being benchmarked and designed separately). Further, costs were identified as the biggest influencer of an organisation’s total rewards strategy.
Tailoring rewards programs can provide solutions to these obstacles. The total rewards optimization tool offers tech-enabled rewards optimisation. Its powerful data analysis can yield reward packages that 70-80 percent of employees prefer to their current package. Simultaneously, companies can achieve cost savings by eliminating waste and reinvesting savings.
Erica Volini, principal, Deloitte Consulting LLP, and US human capital leader said, “Organisations around the world are hyper-focussed on creating an irresistible employee experience to keep top talent. As employees’ demands shift, organisations are recognising the need for strategic management of their total rewards programmes. Traditional compensation and benefits packages aren’t cutting it. By harnessing the power of data and engaging employees directly, companies can use these tools and rewards programmes as a strategic enabler to strike at the heart of what employees really value.”
As it is getting tougher by the day to attract and retain talent, it is important that companies introduce better holistic rewards programmes for the employees.
Emphasising the importance of human capital, Mike Niciforo, principal, Deloitte Consulting LLP said, “Effective human capital balance sheet management is a differentiator in today’s competitive market”. He further added, “Adopting an agile approach to rewards management is key to ensuring organisations invest in the right rewards programmes, to not only motivate their current workforce, but also help plan for the needs of the workforce of the future.”