It’s never too early to look at your Total Rewards strategy and begin to prepare for next year. The workplace is evolving, and so are employee expectations. Here's how you can assess your current approach and determine what needs re-alignment to stay competitive, engaged, and compliant…and prepared for the future.

Let’s first agree to one important idea though: there’s a difference between Total Rewards and total compensation, and the former continues to increase in importance.

Total compensation consists of all the ways you compensate an employee financially, from base pay up to incentives and equity.

Total Rewards, however, goes beyond financial compensation to all the things monetary and non-monetary that you provide to an employee as a ‘reward’ for their contribution. Typically rewards offerings may include such options as time-off, career development, employee discounts, work–life balance, and benefits.

Now, let’s look at 5 things you can consider for your total rewards strategy to prepare for the coming year.

1. Personalize your rewards offerings

Employees today expect rewards that reflect their individual needs and preferences. Move beyond generic packages by offering:

• Flexible work options: Allow remote or hybrid work arrangements to accommodate diverse lifestyles.
• Tailored benefits: Provide choices in healthcare, wellness programs, and time-off policies.
• Customized career development: Offer learning opportunities and mentorship aligned with personal career goals.

Not sure where to focus your efforts? You can learn more about which rewards are important to your employees by deploying an employee listening strategy.

2. Emphasize employee well-being

A holistic approach to well-being is essential in demonstrating your employee value proposition to current and potential employees. Consider integrating:

• Mental health support: Provide access to counseling services and stress management programs.
• Financial wellness: Offer budgeting tools, retirement planning, and debt management resources.
• Work–life balance initiatives: Implement policies like flexible hours and extended leave options.

These initiatives not only support employees’ health but also enhance overall engagement and productivity.

3. Leverage technology for efficiency

Incorporate advanced technologies to streamline your Total Rewards design, administration, and communication:

• AI-driven insights: Use data analytics to personalize rewards and predict employee needs. (Take a look at PayAI™!)
• Automated communication tools: Implement platforms that provide real-time updates and personalized messages to the platforms that your employees use most.

These tools can enhance efficiency and ensure your rewards program is responsive to employee needs.

4. Stay compliant with regulations

With evolving pay transparency laws and other regulations, it's crucial to:

• Review compensation structures: Ensure pay equity and compliance with local laws.
• Implement pay transparency practices: Clearly communicate pay ranges and criteria for compensation decisions to employees and empower your managers to confidently discuss pay with their employees.
• Monitor legal changes: Stay updated on new regulations and adjust policies accordingly. Mercer’s TAAP+ resource is constantly updated to include current data and insights, as well as changes in the law – it’s a great way to stay in the loop!

Proactive compliance helps mitigate risks and builds a fair workplace culture.

5. Invest in career development

Employees value growth opportunities, so you might consider:

• Learning and development programs: Offer access to courses, certifications, and workshops.
• Mentorship opportunities: Connect employees with mentors to guide their career paths.
• Clear advancement paths: Provide transparent criteria for promotions and career progression.

Investing in career development not only enhances employee satisfaction but also contributes to retention.

How does your Total Rewards strategy stack up? Mercer is ready to help you assess where you are, where you’re headed, and how your Total Rewards align. Give us a call at 855-286-5302 or reach out via email.