Editor's Note: Please welcome new Cafe contributor Reena Paul. We are excited to have her join the team!
We are familiar with the total rewards model. It is a symbolic diagram profiling the key elements of a rewards strategy. Each component is aiming to strike a balance between employee wellness, performance and organization success.
I view total rewards as something that is integrative and holistic in nature. From this perspective, I am struck by the possibility that our model may be missing the emergence of a new puzzle piece – financial wellness.
As rewards professionals, fixated on the numbers and market positioning of things, are we missing a key strategic element to what we do? Should we be the change stewards to promote opportunities for real education around the financial literacy of our workforce?
I question whether the value of striving to be a market leader in the industry and providing above normal pay is being actualized in reality, especially when disposable income provided to employees diminishes as quickly as it is deposited.
This begs the question: Do our fellow colleagues really know how to effectively manage their pay? Take for example the competitor next door, who pays at median and in turn has a more productive and happier workforce, all because they considered financial planning and access to tools to be a necessary element of the rewards package.
Although I have seen executive level perquisites that include financial planning services – I bet the employees just below your c-suite could benefit from the same resource. The Financial Wellbeing Index measures and benchmarks year over year financial health statuses of employed adults and is a metric used by many organizations. Most commonly observed is the direct correlation between financial stress/burden and overall employee wellbeing and work productivity. Nearly 1 in 5 working Canadians state that their current financial situation is an influencer of their work productivity.
As Reward Professionals, I believe we are in a position and have the opportunity to evolve our rewards model and alleviate some of the financial stress bearing on our employees. What do you think?
Reena Paul (CCP, GRP) is a Senior Consultant with Morneau Shepell’s Compensation Consulting Team. She is passionate for all things “total rewards” and has experience in dealing with all stakeholders of an organization and strategizing optimum client focused solutions. A lover of data and the story it tells, Reena enjoys the exploration of presenting and discussing compensation with a fresh perspective. Connect with Reena on LinkedIn, or contact her directly at [email protected].
Creative Commons Image "Financial Plan" courtesy of REIC Vietnam
Thank you so much for sharing Reena. I couldn't agree with you more. I've worked with people from all levels on their retirement benefits. It's amazing how executives seek out the support - yet everyone benefits from it. Giving great compensation is part of the solution; teaching them how to turn compensation into a happy life - that is the full answer!
Posted by: Jennifer Sahady | 04/22/2021 at 01:09 PM
Thank you Jennifer! I think we are in a great position to make true impact and why not share the "wealth" of this knowledge across all employee levels.
Cheers - Reena P
Posted by: Reena | 04/23/2021 at 05:11 PM