Seven ways that technology is changing reward strategy for the better
Technology is said to advance every 18 months to two years: when it comes to raw computing power, Moore’s law, says the number of transistors on a microchip can be expected to double in that time.
Applying that to other areas of IT, it has been predicted that by 2025 will be a predicted 38.6 billion smart devices sharing data, 4.4 million internet users, and 70% of all tech spending will be on cloud based solutions.
The most noticeable technological impact on HR solutions has been the ease with which total rewards and benefits platforms can be implemented, especially cloud based software as a service (SaaS) platforms. This has not only meant that reward platforms have saved companies time and money through easier configurable installations and integration, it has also had a knock-on effect for employers and how their rewards are being used by employees.
Remote and hybrid work has changed the face of business, especially desk jobs, forever, but there are roles, such as in healthcare and maintenance, that have always been remote or field-based. Cloud-based SaaS rewards platforms are being used by employers to reach employees no matter where they might be, and with the information being stored by cloud technology, they have faster access to it. Employers can therefore easily target employees that work remotely with bespoke benefits that fit their own situations. The same can be said of employees that find themselves back behind their desks at offices.
With better security features and data collection, employers can roll-out specific benefits to single employees, teams, and whole organisations in different countries. This is all based on the ability of SaaS platforms to collect and analyse data provided by employees through, for example, surveys, which is then number-crunched through integrated cloud analytics. This allows companies to also test what rewards work best for them, which also drives productivity and cuts costs.
It’s therefore important for a company to choose the right technology when it comes to HR solutions. If there are going to be 38.6 billion smart devices sharing data in 2025, businesses need to get their reward strategies right.
What will reward strategies look like as technology improves?
1. The trend looks set to continue for employees to check and use their rewards on-the-go through smart devices. It is up to employers to use the data collected from their employees to create rewards and benefits that are relevant and won’t go unclaimed.
2. A reward and recognition system that is cloud-based gives instant recognition to employees. This should convert to employee retention and reduce absenteeism.
3. Transparency through an HR platform will be paramount when reward strategies are drawn up. Company culture goes hand-in-hand with how information is shared with employees and therefore it wouldn’t be surprising for companies to start sharing more detailed information about pensions, insurances, payroll, and time management with their workforce.
4. Following on from point three are recognition programmes that focus on employee performance, such as key performance indicators and milestones. This information can then be used to find out what’s working for the business and each individual employee.
5. Surveying employees to keep up with how they are feeling will help companies scrutinise their total rewards and come up with improved or different benefits for employees that, for example, are showing signs of burnout.
6. It could be the case that reward strategies will become simplified and won’t always monetary. For example, good behaviours such as volunteer work or getting vaccines could be incentivised.
7. Healthcare and wellbeing will continue to be a critical focus for companies. A healthy workforce = a healthy workplace and rewards in this area will continue to include doctor appointments, gym membership contributions, spa treatments, and many more. One of the least convenient things for employees to do is to book times with health professionals and this means they won’t have to wait on the phone to book.
As technology continues to move at high speed, so too will HR solutions. There might come a day when employee autonomy will play a larger role when it comes to the rewards they would like to have, but for now employers can make these decisions all due to cloud-based technology that fuels and will continue to fuel HR reward platforms in the years to come.
Original article: Technology is changing reward strategies for the better
In partnership with Benify
Benify offers the market's leading global benefits and total reward platform.
