Aon Hewitt works with clients to develop comprehensive and integrated total rewards programs covering remuneration, incentives, insured benefits (eg salary continuance, health, travel) and other rewards that effectively align all these elements with business and employee needs.
To do this, companies need to have a good understanding of what their employees’ value and what drives their engagement. The strategy can then balance the interests of the organisation and the needs of employees to maximise the return on investment.
Aon Hewitt takes a four-step approach when working with clients to formulate a total rewards strategy.
A clear and comprehensive understanding of the existing situation is a crucial starting point but, from our experience, too often does not exist. This is at least partly because responsibility for the different elements of the rewards programs often sit with different managers. In addition, the complexity of insured benefits means that few people other than the responsible manager well understand what is provided.
Each organisation’s culture, structure, HR function, employer needs, employee preferences, budgetary concerns and readiness for change will be unique and needs to be fully understood. Aon Hewitt will build a clear picture by collating and analysing relevant internal documents including employee engagement survey results, insured benefit contracts, attrition rates and demographic data.
Aon Hewitt will facilitate half-day workshop(s) with key stakeholders to stimulate discussion on key reward and recognition processes, systems and benefit usage across the company and to gain stakeholder buy-in.
We will present some broad market statistics so that key stakeholders and a sample of employees can gain a better understanding of the current state of their total rewards framework and begin to help shape the desired future state.
Our design process starts with gaining an understanding of the corporate mission, vision and business strategy. The HR philosophy should flow from this and serves as a guide for the design of all HR programs. Aon Hewitt will then create a total rewards strategy that aligns with the HR philosophy, with rewards that support business objectives and insured benefits that optimise value and effectively meet employees’ needs.
Once a total rewards strategy is articulated and the detailed rewards and benefits programs developed it must be effectively communicated to employees. Aon Hewitt will help guide, structure and even roll-out your company communication strategy if required.
Communication from direct managers is three times more likely to affect a positive result in employee performance than communication from the HR function. Our research shows that over 90% of Aon Hewitt Best Employers have managers capable of explaining rewards to employees. In other organisations, less than half report that their managers have the capability to explain rewards.
Aon Hewitt relies on its fact-based methodology to help clients design, develop and deliver effective total rewards programs that establish a direct connection between the organisation’s goals and objectives and employees’ focus and actions.