Leverage Total Rewards to help Retain Talent
Learn how Total Rewards and Wellbeing can shift the paradigm when it comes to retaining talent
Ryan McDonald: (00:01) Hi, I'm Ryan McDonald, a principal in our rewards practice and US Employee Benefits lead. I help organizations implement the targeted rewards programs to attract and retain top talent at the lowest possible cost. We know the statistics of 76% of healthcare workers experiencing burnout and the majority of workers are considering leaving the profession. But these are not entirely pandemic driven. In HHS study in 2019 highlighted that burnout and fatigue existed long before COVID. As a result, the workers that have remained have been struggling for a long time, and we need to be aggressive in their support both professionally and personally. Rethinking total rewards is a great way to take targeted action now. The main issue is typically cost, especially with the current financial constraints in healthcare. Many organizations struggle with the cost of enhancing benefits. We see the fiscal impact of compensation increases and organizations had to pay it as a short-term solution, but the cost to retain is a lot less than to hire, and there are opportunities to reduce the spend within your benefits program.
(01:02) The initiatives of vendor selection, vendor contracting, risk quantification, and harmonizing affiliates for economies of scale can lead to several percentage off spend, which for midsize organizations can be worth millions per year. Use these savings to enhance the rewards and other people focused initiatives at this critical time. For where to focus, I like to think of total awards in the context of a large purchase such as buying a house. The location, price, and structure, which are associated with compensation, role and location are the initial criteria that are evaluated. These are the deal breakers, but it's the functionality and wow factor that ultimately determine the purchasing decision. Within total awards the functionality aligns with the additional elements to support employees be the best version of themselves. On top of the structural benefits of medical, dental, disability, et cetera the more impactful benefits such as enhanced behavioral health, fertility, caregiver DEI, and financial support are a few examples of targeted actions that have a direct positive impact on an employee's life.
(02:03) And the key with functionality is that every person is different. The wow factor we're looking for is the culture, flexibility and individualization that increase organizational brand in the market. With the scramble for talent many healthcare organizations focus on compensation, but we know that's only a portion, but very costly element of the employee experience. Many healthcare organizations are also reluctant to look outside of their domestic capabilities for best-in-class solutions. But there are virtual options that should be considered. To show our employees we truly care. We need to modify the status quo and look past the foundation and create the functionality and wow factor in this tight labor market. The upcoming generational shifts and future workforce supply are forcing healthcare organizations to rethink their current and future total rewards program. Organizations that do not will be left behind. If you'd like a holistic assessment of opportunities to reduce costs and expand benefits for attraction or attention, we're happy to help you create the wow factor.