An effective total rewards strategy requires deep understanding of what the CEO and employees really value. Read more to know experts' views on Total Rewards Designs that truly matter.

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Design Rewards
that truly matter
While featuring in the HR lexicon for over 10 years, there are
widely divergent opinions in the community as to what
constitutes total rewards. Organisations have differing
compensation and benefits structures, operate under diverse
management principles, and have different approaches to
employment value positioning.
By Vikram Choudhury

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Checklist while assessing a total
rewards strategy
By Vikram Choudhury

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What the experts have to say…
“Research and experience suggest that the components of total rewards
and the EVP are interdependent and compatible. Companies today face
an inflection point relative to their total rewards programme and the most
progressive are addressing the economic slowdown by recrafting their
EVP, thus optimising their investments.”

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“Retention and reward are the two key reasons for employers to grant
stock options to employees. Almost all the companies (more than 90 per
cent), who grant stock options, feel that the retention objective is
achieved. What is left unsaid is if the employees have realised the cash
from the perceived ESOP gains.”

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“According to the large accounting firms, the Rs.5,000 annual tax
exemption amount is only for organisation wide non-distinguished
awards (for example, Diwali gifts for all employees, New year gifts for all
employees). Any other award based on performance or milestones that
are given to individuals, need to be taxed and do not fall under this
Rs.5,000 limit.”

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“Another fundamental change, which has emerged as a strong
supplement to the increasing role of R&R in driving performance
based milestones, is the shape and structure of the rewards catalog.
Emerging trends in industry practices indicate that the dynamics
have now shifted more towards experiences that translate into
memories. The enhanced impact created by the experiential nature
of rewards has made adoption of these metric and performance based
schemes much easier and faster.”

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“Employers are choosing from a bouquet of employee benefit offerings
such as life insurance, profit sharing, employee stock ownership plans,
healthcare facilities, both, curative and preventive, meal benefits and
child care availability amongst others. Going forward, the focus seems to
be changing in this space, more towards flexi-plans, employee and
family welfare and focus on protecting and preserving income..”

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“A large part of employee attrition is attributed to lack of recognition in
workplace. Though many leaders pursue recognition strategies, there is
still a high degree of dependency on the immediate manager to execute
towards building such a culture. There is thereby emerging popularity for
technology led social recognition programmes, which drive uniform and
syndicated usage, eliminate “favoritism” and yield high excitement
among the workforce.”

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Supplement – February 2013
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