According to a new study from AON Hewitt entitled “Inside the Employee Mindset, Key Findings on What Differentiates, What Rewards, and What Communicates” released in February 2015, the majority of employees (61%) feel their total rewards adequately meet their families’ needs, though more than one-third do not agree. With rising health benefit costs for employees and relatively flat wage increases, the frustration with rewards is beginning to show in employee attitudes. Employees are less likely to see total rewards supporting attraction and retention effectively. The percentage that strongly agreed that their total reward programs were accomplishing the following goals:
- Meet my/my family’s needs – 61%
- Have a significant impact on the company’s reputation – 56%
- Support our organization’s ability to attract employees – 52%
- Support our organization’s ability to retain employees – 49%
- Salaried employees are more likely than hourly employees to say their current total rewards meet their needs and help their employer attract and retain talent.
- Millennials and Gen Xers are more likely than others to say their total rewards help retain talent.