Remote and Hybrid Work Revolutionizing Total Rewards Strategies
WorldatWork Survey finds that 78% of organizations report remote or hybrid work as their primary work arrangement.
SCOTTSDALE, Ariz., Sept. 19, 2024 /PRNewswire/ -- As remote and hybrid work models solidify their place in the modern workplace, organizations are rapidly evolving their Total Rewards strategies to meet the shifting demands of their workforce. WorldatWork's recent Total Rewards Inventory of Programs & Practices study reveals that 78% of participants now report remote or hybrid work as their primary work arrangement, with the most common being a hybrid model where employees split their time between 2-3 days per week in the office and remote. This trend is shaping the future of employee rewards, compensation, and benefits, leading to significant shifts in how companies allocate resources.
Adapting to the New Normal
The decrease in fully on-site work, now at just 21%, has resulted in a corresponding decline in the utilization of on-site health and welfare programs. This shift presents an opportunity for employers to reallocate funds more effectively within their rewards programs, potentially enhancing employee satisfaction and retention. Companies are increasingly recognizing the need to tailor their offerings to the preferences of a remote or hybrid workforce, ensuring that their investment in employee benefits is both impactful and relevant.
As hybrid and remote work models become entrenched, there has been a notable reduction in demand for dependent care services, with declines reported across various offerings, including dependent care spending accounts and child and elder care resources. This trend reflects the flexibility these work arrangements provide, allowing employees to better balance professional and family responsibilities.
"Remote and hybrid work have empowered employees to find a balance that suits their personal and professional lives," says Alicia Scott-Wears, Content Director at WorldatWork. "We're seeing a significant shift in what employees value, and it's clear that companies must adapt to these changes to remain competitive and retain top talent."
The Rise of Family-Friendly Benefits
Family-friendly benefits continue to gain traction as companies recognize the importance of supporting employees in all aspects of their lives. Paid parental leave has seen a 27% increase since it was introduced to this study in 2016, with a 3% rise from 2022 to 2023 alone. Additionally, unpaid job-protected parental leave has increased by 33% since 2016, reflecting a broader commitment to reducing stress and financial burdens on employees during critical family moments.
Paid medical caregiver leave has also held steady, with a 19% increase in usage since 2016, emphasizing the continued relevance of this benefit in supporting employees through health challenges. Interestingly, the inclusion of pet-related benefits, such as pet insurance and paid pet leave, has also seen growth, recognizing that pets are an integral part of the family for many employees.
Emphasizing Measurable Impact in Rewards Strategies
The study also highlights the importance of measurable impact in rewards strategies. While initiatives related to environmental sustainability, corporate social responsibility, and diversity, equity, and inclusion (DEI) have seen a decline, likely due to challenges in measuring their effectiveness, other areas have gained prominence. Performance-based pay increases, pay equity, and market-based pay adjustments have seen a combined 10% increase in usage from the prior year, underscoring the importance of measurable and impactful rewards strategies.
"Metrics are key to managing effective rewards strategies," adds Alicia. "As companies navigate the complexities of pay equity and performance-based compensation, the ability to measure and demonstrate the impact of these initiatives will be critical in driving success."
As companies continue to adapt to the evolving work landscape, the focus on flexible, family-friendly, and measurable rewards strategies will be essential in attracting and retaining a diverse and geographically dispersed workforce.
About WorldatWork
WorldatWork is the leading global nonprofit association for professionals engaged in the critically important practice of Total Rewards. We serve those who are responsible for cultivating inspired, engaged, productive, and committed workers in effective and rewarding workplaces. We guide them in the design and delivery of Total Rewards programs with our membership, education, certification, idea exchange, thought leadership, knowledge creation, information sharing, research, and networking. For nearly 70 years, WorldatWork has served Total Rewards professionals throughout the world working in organizations of all sizes and structures. Professionals from more than 93% of Fortune 500® organizations rely on WorldatWork for Total Rewards solutions.
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SOURCE WorldatWork
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