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Purpose, certainty and modernized total rewards in an era of disruption

Total Rewards

By Amy DeVylder Levanat and John M. Bremen | July 30, 2018

As organizations move to modernize total rewards, the principles of purpose and certainty help establish a foundation for key aspects of human capital strategies.

How do “purpose” and “certainty” relate in an era of disruption, when speed, agility, tolerance for ambiguity, digital adaptation, organizational transformation and dynamic change are paramount? What role do employers have in fostering purpose and certainty?

The connection is quite straightforward: Companies that are purpose-driven and offer their employees a sense of certainty in the current environment are at an advantage over those that do not. Companies that emphasize the value of individual purpose demonstrate that well-being, psychological safety and personalization not only matter, but also lead to improved engagement. And this all is happening in a time when culture and “healthy company policies” are top of mind for HR (as well as legal and compliance functions). Research has long established that engagement leads to productivity, and productivity leads to business performance.

A BlackRock report further validates the correlation between purpose and employee engagement: “Companies that can better articulate their purpose are more likely to build strong relationships with their employees (and customers), and have a clear sense of their strategic objectives. These are essential components of long-term growth. Employees who do not feel valued by their organization are generally less productive or more likely to leave. Product quality and reputation can suffer when employees are not fully engaged and supportive of the company, its business and goals.”

Willis Towers Watson research validates this supposition, showing that companies demonstrating best practices relative to the talent experience are:

  • Three times as likely to report employees are highly engaged
  • 93% more likely to report significantly outperforming their industry peers financially

Employers are finding that when they can combine purpose and certainty, they increase employee attraction, retention, engagement, well-being, productivity and financial performance. Learn more in this article, published by Workspan Daily.

The article is reproduced here with the permission of WorldatWork.

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