Total Rewards - the need to show employees all the things the company does for them. A statement of the companies largess so to speak. A single page of ALL the things the company provides to employees with nice graphs, pretty pie charts and numbers and percentages. A PR statement that says "Look how good you've got it! We are treating you right. Please don't leave and please work harder."
Does anything say "pathetic" louder than that?
As I read all these articles talking about including rewards and recognition in the total rewards statement I can't help but think this has gotten so one-sided. Since when did companies get so needy that they have to show the employee all the great things they do for them? Is it because it was so one-sided in the past, where employees were treated poorly and taken advantage of? Is this some sort of guilt-assuaging task that companies need to do in order to feel good about asking for an even exchange of work for pay/benefits? Or have employees gotten so stupid as to not understand all the expenses that go into keeping them employed?
It's not a Total REWARDS Statement!
Very few items on the total rewards statements I see are really rewards. They are the minimum benefits the company feels are necessary to attract and retain the appropriate talent to fulfill their mission and goals. It's not a reward statement. Calling it a rewards statement is just massaging the language to give it good PR spin.
I might go along with a "statement" of employee expense since many costs are hidden from the employee (or at least difficult to divine from pay stubs.) I think that would be a good way to communicate the "investment" the company has in the employee who shows up and does their job as specified in the job description.
But I don't think that rewards and recognition opportunities are part of that expense - they are variable expenses driven by the employee - not the company. If employees don't excel there is no cost therefore it wouldn't show up in their "total rewards" statement. Those expenses are not dollars the company gives to employees they are dollars the employee earns from the company.
Why Recognition Shouldn't Be Included
In most cases recognition of a job well done should be a standard operating procedure - just good manners and good business. I don't see how that becomes a line item on a total rewards statement. Isn't that good management? When did good management become a "perk" to highlight in a statement. To me that is just a given. Including recognition in a total rewards statement is like including "being nice to your spouse" as a bonus in the marriage contract. Even a strategic program with formal rules and processes that links to company mission/values is variable. If employees don't meet the criteria - no cost (and a huge problem for the company.)
Why Non-Cash Incentives Shouldn't Be Included
Incentives outside the compensation arena shouldn't be included simply because those are not benefits of working at a company - they are incentives for working HARDER or working differently at a company. If an incentive is included in the total rewards statement it communicates that the company is "giving" these awards - not the employee earning them. To me it devalues the incentive and sets up a situation where all employees feel they are owed these incentives.
Should There Be Two Statements?
Here's a thought - maybe we should do two statements. A total "expense" statement that shows how much the company has invested - and highlights the standards the employee must meet in order to keep that exchange in balance. In addition, there is an "opportunity" statement that lists all the different ways the employee can earn additional perks/awards, etc. for growing and exceeding in their position and career.
I think two statements communicate a much different picture of the exchange between the company and employee. Two statements communicate the real relationship - one that has two sides, one that has commitments from both parties - one that shows the employee as a giver (of time, talent and intelligence) AND the company as a giver of benefits and money.
Co-Dependent No More
I may just be in a bad mood because I'm inundated with information about how employees are getting screwed left and right and the company as this big, bad wolf taking advantage of the worker (hammer and sickle anyone?) I think we're fostering a co-dependent relationship between companies and employees that won't turn out too well. As long as companies feel guilty asking for minimum work effort and employees feel deserving of awards for minimum effort we'll continue to watch performance dwindle.
Let's break the chain - specify investment for "being there" and outline rewards for "being better."
A well-run company, with a good "expense/investment" statement and a good "opportunity" statement would look much better to me than a company that inflates their true investment in employees by including all the costs associated with variable employee effort as if all employees receive that money/cost. To me its just a bit duplicitous.
Set up separate statements and I'll bet you'll see a different reaction.
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Marketing and Incentive Design Consultancy