Why focus your reward strategy on employee retention?
An effective rewards strategy should be centrally aligned to the goals and ambitions of your wider organization, through happy, considered, dedicated employees. So, it's alarming that only 45% of employers believe their current reward policy positively impacts employee retention and motivation - because an effective reward strategy can actually be crucial to ensuring that you attract (and hold on to!) the very best people for the job.
This highlights a critical discrepancy: if your reward strategy isn't effectively driving employee motivation, enhancing performance, and retaining top talent, then it won’t be contributing to your sustained organizational success and competitive advantage. Our research found that just 39% of employees feel sufficiently recognized and appreciated for their performance and contribution to the organization, showing a substantial disconnect between employer intentions and employee perceptions.
On top of that, only 37% of employees said that they were satisfied with their complete reward package, including both financial aspects and fringe benefits, so simply increasing salary budgets is not enough to attract and retain talent. Offering a diverse and customizable reward package that balances different employee benefits ensures your reward strategy is focused on employee retention and truly meets their needs, which will go a long way to forwarding your organizational ambitions and reaching your business goals.
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