Page 8 - May-Jun 25 Reporter-FINAL web

INSURANCE UPDATE

BEYOND THE PAYCHEQUE:

Realizing the True Benefits of Aligning

Compensation with Performance

HUB INTERNATIONAL LIMITED

oday’s challenging economic environment has put significant • Alignment Between Rewards and Performance. To be effective, a total
Tpressure on employees, who are feeling the weight of rising living rewards plan must align incentives with clearly defined performance
costs, job demands and shifting workplace expectations. This stress is metrics by role and business unit. When there’s a disconnect
taking a toll on job performance and company profitability: Workers between what’s being rewarded and what’s expected, employee
report losing up to seven hours of productivity each week because of engagement can suffer. Tracking ROI on performance is essential to
financial stress at a cost of $183 billion annually to employers. 1 justifying compensation decisions and sustaining productivity.
This, coupled with persistent inflation and elevated labour costs, • Data-Driven Trust and Transparency. Trust is the foundation of any
has prompted companies to turn their focus inward to improve successful rewards strategy, and it starts with data. Organizations
employee output. According to HUB’s latest Outlook Executive must leverage workforce insights to personalize offerings and
Survey, 75% of Canadian and 66% of U.S. companies said employee demonstrate that rewards are meaningful and fair. Without data and
productivity is a top priority in 2025. trust, your rewards strategy is just another budget line.
But increasing productivity is no easy task in the best of times, and
it becomes even more challenging in periods of economic uncertainty. The HUB EDGE
Many organizations struggle to measure productivity and even There are a variety of actionable strategies that organizations can
fewer have total rewards strategies that support and empower their implement to jumpstart productivity and mitigate risks to profitability:
workforce. Organizations may not know where to start, think it’s cost- Leverage the data you already have. Total rewards can be
prohibitive or fail to realize their employees’ needs outside of the customized based on employee data using employee profiles derived
workplace. from an organization’s Human Resources Information System (HRIS).
With the right data that links compensation to clear performance HUB’s Workforce Persona Analysis tool allows companies to analyze
metrics and the right broker support, businesses can boost their workforce demographics and create individualized and/or
employee productivity and help ease the financial burdens segmented compensation plans that speak to the unique needs of
employees currently face, which in turn increases productivity. different generations and personalities to provide every employee a
In a volatile economy, aligning pay with performance isn’t just Quality Employee Experience (QEX).
about retention — it’s a strategic lever for resilience and results. Address universal needs to offset financial distress. As outlined
by Maslow’s Hierarchy of Needs, humans are driven to meet basic
The Components of a Total Rewards Strategy physiological needs like food and shelter before striving for additional
Employee productivity isn’t driven by a single perk, but by making luxuries. Similarly, employees aren’t likely to be motivated by top-tier
people feel genuinely valued within the organization in both good wellness perks if they’re still worried about the price of eggs. With
times and bad through: so many workers struggling to stay afloat amidst a growing cost-of-
• Personalized and Holistic Benefits. A strong rewards strategy living crisis, tools like the Total Rewards Hierarchy of Needs can help
addresses the full employee experience by offering a flexible, data- employers structure plans around necessities, such as setting up
driven mix of compensation, wellness benefits and work-life balance employee spending accounts to cover everyday expenses like gas
initiatives tailored to individual needs and personas. Continued on page 22...

8 LBMAO Reporter - May-June 2025 www.lbmao.on.ca