Designing a Total Rewards strategy is both an art and a science. Because skilled professionals have more choices than ever, offering a package of salary, benefits, and perks, and hoping for the best is no longer enough. Successful organizations use robust people data to ensure their rewards resonate with employees, align with business objectives, and stand out in the market.

HR and Total Rewards leaders must use a mix of internal and external data sources to make confident, forward-thinking decisions. These include benchmarking studies, internal payroll and HR data, industry trend reports, and financial modelling. These insights clearly show your competitive positioning, internal equity, and budget feasibility.

Yet one critical piece is often overlooked: employee voice. Giving your workforce a meaningful seat at the table ensures your strategy reflects what employees value most. Understanding their priorities and preferences lets you fine-tune your investment to boost engagement and deliver the best return.

Not all feedback, however, is created equal. The data’s quality, scope, and source will determine its usefulness. Below, we explore the main types of employee-related data you can leverage to inform smarter Total Rewards decisions and how to use them effectively.

1. Direct employee feedback

The most relevant data will always come from your own people. Carefully designed employee surveys created with your organization’s culture, structure, and goals in mind are the gold standard for understanding how your workforce perceives and values your current rewards.

These surveys can include standard questions about satisfaction with benefits and more sophisticated choice-based trade-off techniques (such as conjoint analysis) to pinpoint what matters most to different employee groups.

Benefits:

• Relevance: You’re hearing directly from your workforce, so insights reflect your unique culture, values, and circumstances.
• Reliability: Well-crafted surveys, developed with expert input, meet scientific standards, ensuring results are dependable, meaningful, and trustworthy.
• Granularity: You can segment results by department, region, role, tenure, or other factors for tailored strategies.
• Actionability: Detailed data helps you target investments in areas that matter most, driving stronger outcomes for employees and the business.
• Advanced analytics: Combining preference data with program cost-modelling tools like the Mercer Rewards Optimizer ® enables you to identify cost-effective changes that maximize value.
• Engagement: Showing employees that their input drives change can foster trust and reinforce their connection to the organization.

Drawbacks:

Gathering employee feedback takes time, resources, and a commitment to follow through. It’s essential to be patient throughout the process and remember the end goal. You’ll also need strong participation rates and skilled analysis to turn raw data into actionable insights. You'll see better results if you can encourage more employees to participate and communicate effectively.

Mercer’s approach:

Mercer’s employee listening experts help organizations capture the correct data for their strategic priorities. Tools range from customized surveys to targeted benefits satisfaction studies designed to produce actionable insights that will be useful to your company. These tools include the Mercer Rewards Optimizer and the Unmet Needs Analysis.

Bottom line:

Direct employee feedback should be the cornerstone of your Total Rewards design, delivering the clarity you need to optimize spend strategies and strengthen engagement.

2. Pulse surveys and digital focus groups

Sometimes you must respond quickly to emerging issues or check in on a specific change, like a new benefit launch or flexible work policy. That’s where pulse surveys and digital focus groups shine. These tools allow you to gather focused feedback from a smaller sample of employees, often in just days.

Benefits:

• Cost-effective: Both options require less time and resources than comprehensive surveys.
• Speed: Quick turnarounds help you act on issues before they escalate.
• Targeted: You can zero in on one topic at a time for sharper insights.

Drawbacks:

• Representative: Smaller samples may not reflect the views of your entire workforce.
• Depth: Short surveys and group discussions won’t uncover the same level of detail as comprehensive surveys.
• Potential bias: If not managed effectively, vocal participants in focus groups can dominate the conversation, so it’s vital to encourage everyone to speak up.
• No optimization modelling: While they can reveal preferences, these strategies can’t model cost impacts like more robust surveys can.

Mercer’s approach:

Mercer’s clients use Pulse Surveys and Digital Focus Groups to gather feedback quickly, often complementing larger research initiatives.

Bottom line:

These tools are best used as supplements, ideal for rapid tactical decisions, but not substitutes for in-depth research.

3. Market data and external research

While internal data is your strongest asset, external research provides valuable context. Benchmarking studies, white papers, and industry reports help you see where you stand in the broader market.

Benefits:

• Trend identification: You’ll be able to spot emerging priorities, such as enhanced mental health benefits or new flexibility options.
• Contextualization: You can compare your employees’ preferences against broader market norms.
• Breadth: These strategies allow you to learn about rewards and benefits you may not have explored internally.

Drawbacks:

• Lack of specificity: External insights won’t capture your unique organizational culture.
• Data quality: Market data may be outdated or too general for precise decision-making.
• Limited actionability: Turning broad market trends into relevant strategies requires skill.

Mercer’s approach:

Mercer’s Inside Employees’ Minds study offers insights into what employees value today, helping you ensure your rewards remain competitive in Canada’s evolving labour market.

Bottom line:

Market research is an excellent complement to internal data. It provides a competitive lens and helps you anticipate future trends.

4. Online sentiment and reputation analysis

Your reputation in the talent market can influence attraction and retention as much as your actual rewards program. Analyzing online sentiment through AI-powered tools that scan reviews, forums, and social media can reveal how your organization is perceived externally.

Benefits:

• Reputation monitoring: Identify issues that could impact talent attraction before they escalate.
• Broader perspective: Understand how candidates and the public view your employer brand.
• Proactive insight: Spot misalignments between your internal culture and external perception early.
• Non-intrusive: No direct employee participation required.

Drawbacks:

• Surface-level data: Online sentiment doesn’t always reflect the reality of your employees’ experiences.
• Noise and bias: External events unrelated to your organization can distort perceptions.
• Limited specificity: Not ideal for informing detailed reward changes.

Mercer’s approach:

Mercer works with organizations to interpret sentiment data in context and develop action plans for brand and culture alignment.

Bottom line:

Online sentiment analysis is a valuable strategic tool for monitoring your employer brand, but should be used alongside, not instead of, direct employee insights.

Bringing it all together: An integrated approach for employers

A well-balanced data strategy is critical when talent mobility and expectations are high. The most effective Total Rewards decisions come from integrating multiple data sources.

In summary:

• Start with robust, comprehensive employee feedback because it’s the most reliable source for understanding what drives engagement in your unique workforce.
• Supplement with market research to keep your rewards competitive and relevant.
• Use pulse surveys and digital focus groups for rapid, tactical adjustments.
• Monitor online sentiment to safeguard your employer brand and spot emerging risks.

When combined thoughtfully, these data streams give you the insight to design a Total Rewards program that is employee-centered, market-ready, and cost-optimized, supporting engagement, retention, and business performance.

Mercer’s team is here to help you design listening strategies, interpret data, and craft rewards that deliver maximum impact. Call 855-286-5302 or email surveys@mercer.com to get started.