Attracting, retaining and motivating your workforce beyond pay cheques

Many people believe that an employee’s motivation and performance is directly proportional to only their pay cheque. However, our data tells a slightly different story. According to our 2024 Hopes and Fears Survey findings, having a better work-life balance was the greatest motivator for employees to perform at their best, even more than a higher salary.

Employers need to understand that ‘life’ in ‘work-life balance’ is unique to each employee. Some may care for family, while others pursue further education. It’s our responsibility to recognise these diverse needs and ensure employees feel valued.

For a single employee, understanding ‘life’ is straightforward. In a large organisation, it's more challenging and employers can prioritise promoting work-life balance through Flexible Work Arrangements (FWAs) such as hybrid models, remote work, and flexible hours to make a positive difference. These initiatives not only demonstrate our commitment to supporting employees' work-life integration and well-being, but also align with broader societal goals.

In fact, the Singapore Government recognises the critical importance of work-life balance and mandates all companies to implement the FWA policies by December 2024. This policy aims to enhance productivity and foster a resilient labour market.

Beyond just work-life balance, employee’s preferred benefits can vary significantly depending on where they are in life. Today, many countries in Asia still rely on a one-size-fits-all approach to reward, based on past data and industry benchmarks. This approach might not account for individual employee needs.

Rewards have the potential to be an ideal starting point. By recognising and offering benefits that adapt to employees’ changing life seasons, organisations can differentiate themselves as empathetic, forward-thinking and genuinely invested in their employees’ lives, thereby fostering a positive and supportive work culture that sets them apart from competitors.

In today's digital age, leveraging advanced technologies like real-time preference analytics can really optimise our total rewards strategies. These tools combine traditional top-down approach with insightful bottom-up perspectives – allowing employers to have clearer views of what employees truly want.

Concurrently, a bottom-up perspective empowers employees to reflect on which reward offerings are truly important to them, with data-driven insights, employers can customise their reward offerings to meet specific employee preferences, presenting rewards that have a higher perceived value. Real-time preference analytics also provide insights into the choices employees make and the trade-offs they consider. The great thing is, implementing these personalised benefits often turns out to be cost-effective, especially when considering the potential return on investment.

By using these innovative strategies, employers can create a more dynamic and responsive rewards system that deeply resonates with our modern workforce, fostering a more motivated and committed team.

Additionally, almost 50% indicated that opportunities to upskill will influence their decision to stay with their current employer. This is a clear signal for us to take immediate action to understand our employees' needs better and adjust our rewards and benefits accordingly.

While total reward optimisation may not be the only solution, it stands out as one of the most effective strategies available. By focusing on agility, employee-centricity, and data-driven insights, we can transform our rewards system into a win-win ecosystem for both the organisation and its employees.

By prioritising work-life integration, fostering a culture of appreciation and belonging, and driving business growth, we can create an environment where employees feel valued and motivated.

Here is why:

1. Without knowing the problem’s root cause, you can’t find the solution

Understanding why employees leave can be tricky. One professional firm struggled with high turnover among senior associates, who often left before becoming managers. This constant turnover was costly due to ongoing retraining needs.

To find a solution, the firm used a preference analytics tool and discovered that senior associates highly valued learning and development opportunities. With this insight, the firm improved its personal development programs, focusing less on just offering bigger bonuses, which hadn't stopped people from leaving.

By adding targeted courses and initiatives, the firm saw a big boost in both retention and engagement rates.

To me, this emphasises how effectively understanding and addressing employee preferences can meaningfully contribute to workforce retention.

2. A high sense of belonging could be a powerful motivator

We all have voices, yet not everyone feels truly heard. It’s essential for us to recognise that people have different needs at various stages of their lives. For example, a single 25-year-old employee might be eager for career development opportunities. In contrast, a 40-year-old parent might value flexible working arrangements to better manage family and childcare responsibilities.

By addressing these varying needs, our employees feel heard and cared for. This approach has a profound impact on their satisfaction, retention, and productivity.

When we listen and respond thoughtfully, we create a more inclusive and supportive work environment.

3. Rewards that truly matter to employees doesn’t always have to come from the company’s budget

The total reward optimisation program can be self-funding, thanks to its impressive return on investment (ROI). By boosting employee engagement, productivity, and retention, we achieve significant cost savings and benefits.

Interestingly, these solutions don't always require additional spending. For example, insights from a preference analytics tool might reveal that many employees are parents who prioritise quality education for their children. With this information, we can work with vendors like childcare or tuition centres to offer valuable, cost-effective rewards.

By negotiating bulk discounts, we provide employees with affordable onsite childcare or educational support for their children, addressing what truly matters to them and enhancing their satisfaction.