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Companies Try to Align Total Rewards with Business Strategies

While more than half of the organizations participating in Mercer’s 2014 Total Rewards Survey made a significant change to their total rewards strategies in the past three years, less than one-third of them think their total rewards and business strategies are fully aligned. Mercer’s survey examines how firms connect their compensation, benefits, training, and career development practices with their business priorities. More than 350 employers across all industries in the US and Canada were surveyed about their total rewards strategies in both mature (US, Canada, UK, Japan) and emerging markets (such as Brazil, China, and India).

“It is critical that a company’s rewards strategy aligns with its business strategy to achieve overall success,” said Steve Gross, Senior Partner in the Rewards segment of Mercer’s talent practice. “A balanced approach to total rewards — one that acknowledges the needs of the business, the changing environment, the aspirations and demographics of employees, the local culture, and the current and future cost constraints — is both essential and challenging.”

Added Mary Ann Sardone, Partner in Mercer’s Talent practice and Regional Leader of its Rewards segment: “As companies focus on the cost of their talent, attracting and retaining the right employees and differentiating rewards for top performers are challenges that can be made easier by incorporating the use of workforce analytics.”

Learn more about total rewards strategies and talent practices.
Companies Try to Align Total Rewards with Business Strategies
Infographic by Mercer Insights


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