Insperity, Inc., a leading provider of HR and business performance solutions, has unveiled the findings of a new study that explores how high-performing companies use Total Rewards packages to fuel business success. The research, conducted by the Incentive Research Foundation in collaboration with Insperity, demonstrates that the strategic implementation of Total Rewards, rather than the size of the package, is the key driver of exceptional business results.
- Strategic Implementation of Total Rewards
- The study, based on a 2024 survey of 1,200 executives, highlights that success in talent management relies on strategic Total Rewards implementation and alignment with business objectives.
- High-performing companies optimize their Total Rewards programs to drive better business outcomes, focusing on culture, employee engagement, and organizational alignment.
- The Role of Culture and Talent Strategy in Total Rewards
- Top-performing companies are nearly twice as likely to rate their talent strategy as “excellent” compared to standard performers (44% vs 24%).
- A people-first culture is the foundation for the effective use of Total Rewards, ensuring that rewards are aligned with organizational goals and employee expectations.
- The Importance of a Strong Employee Value Proposition (EVP)
- Leading companies consistently apply their EVP throughout the employee lifecycle, including recruitment, onboarding, and engagement.
- The research finds a significant gap between top and standard performers in their use of EVP (67% vs 38%), showing that a clear EVP helps guide key talent decisions.
- Effective Communication of Total Rewards
- Top performers excel in communicating the value of their Total Rewards packages throughout the employee journey, resulting in stronger engagement and alignment with business goals.
- The study reveals that 45% of top performers effectively communicate their Total Rewards, compared to just 31% of standard performers.
- Targeted and Strategic Use of Rewards
- Top-performing companies stand out by using rewards more strategically, such as leveraging non-cash rewards and focusing on substantial recognition to reinforce key behaviors and business goals.
- The study highlights that base compensation is equally important for both groups, but performance-based financial rewards like bonuses are more common among standard performers (33% vs 26%).
The research underscores that high-performing companies distinguish themselves by strategically aligning their Total Rewards programs with talent strategies and business objectives. With a focus on culture, effective communication, and a strong EVP, these organizations enhance employee engagement, retention, and overall business performance, driving greater success in today’s competitive talent landscape.
