Hi, I'm Mike Davis. We're back to non-monetary rewards. If you were with me on the last piece, we just introduced non-monetary rewards, and I hope it made a compelling case as to why you should think about that as part of a Total Rewards program for employees. Now, we're going to go into a deeper look into how current and future employees think about pay, and in particular, how they think about non-monetary rewards. And we're going to go, again, to the Total Rewards model that brings some of this to light. So, again, Total Pay compensation and benefits is down there in the lower left. But the rest of this grid shows different factors that, in this particular case, consultants, Zingheim and Schuster, saw repeatedly in their work that people think of as value in their jobs. And it can relate to individual growth, in the upper left, compelling future, how I think about things down the road, if I stay at this company. And then just what I like about working in the actual, physical workplace itself. And that can be the people. It can be the physical structure itself. It can be the manager. It can be just the work. It could be a super, ideal job for the person. And then, also, tucked into the total pay, is recognition. Just, somehow being told you're doing a great job, and whether that's formal or informal, and again, we will explore that more, as we go forward. So, there are quite a number of ways that non-monetary rewards show up in this model, and you can see by these arrows, its aspects of individual growth, its aspects of compelling future, positive work place, and I could've had one more arrow over there under recognition at the bottom. And I'm sure as you think about your work, there are aspects in either some of these arrows or all of these arrows that you would agree are the most important parts that you tell people about why you like your job. So, what are employees looking for? First and foremost, and I put this in quotes, fair compensation. Doesn't have to be the highest, can't be the lowest, but it has to be in some zone that compared to other things that you could be doing for work that's deemed to be fair. But, most people are looking for more than that. And from the model, it might include such things as these five factors, which can be a company you're really proud of, has a great reputation, you could have a great manager that just makes a huge difference in how you feel about your job. It's possible you've been in a workplace that you didn't feel safe, or was constantly dirty, so it could be that you just want to be in a nicer place to work. Many people talk about coworkers in a very positive way. You just like the people you work with, and it's actually a pleasure to go to work. And then a more higher order thing, people do want to learn and grow. There's a great satisfaction that comes from that. So that rounds out the ideas here. So again, are all of these important? Total Rewards are individual, so if you ask five people what's important to them, you might get five different answers, so it's important to remember a Total Rewards offering with multiple non-monetary rewards will actually impact different people differently, and that's okay. The other thing is to just also recognize, this can change overtime. It's possible things are more important to you when you're just tired, then after you've been at the job for a while. Could be before you have a family. Once you have a family, there could be illness in the family. I mean, there's so many things that can change that will cause you to look at your job differently than you did before. And then, a very common one, just working part-time and going to work for an employer that allows that, versus every job having to be full-time all the time. So, this is really interesting. Are employees aware that they have these preferences? And the truth is, not always. I mean, sometimes, yes. And they can tell you right away what those are, but sometimes, no. And you might not understand it until something happens, where all of a sudden a light bulb goes off, and a great example is the second bullet here, is, do I understand the importance of having a manager that I like? Well, for a lot of people, they figure that out the first time they have a manager that they don't like and all of a sudden they say, my gosh, I had no idea it was that important. But in other cases, instead of having to figure it out along the way, you might know right away and, in particular, that's when there's a super company with a great reputation, and you just know you want to work there. Or there's a job you've wanted to have your whole life, and when you're finally able to get it, you know it. Or it could be as simple as, you don't have the ability to get in a car and drive somewhere far away. And if you can walk, or ride a bike, or maybe take a bus that's close, that could be really important to you too. So WorldatWork is an organization that studies just what it sounds like, work at different employers around the world. They did a survey on these kind of preferences, and they had about 700 employees, now granted, they were mostly in the U.S., but I thought you might find the results interesting. And what they found, the top five categories of what people said they valued most, besides the money, opportunity to learn and grow, flexibility, we're going to go into that in a much greater depth down the road, time off, either with or without pay, the values and culture of the company, and promotion. Now that's not to say this is the five that are going to work for everybody, but as they cast this net across these 700 people, these were the things that came up most often. And again, you could go back and look at that model we started with and see where they fit in. There's a whole other study that came out that did the same thing and asked a different group of people. And here, after fair compensation and benefits, you can see what they said. Very similar to what we looked at on the prior slide, so I think you'll find survey after survey, these things really do matter, and they all fit under this label of non-monetary rewards. So if we look at patterns here, first, people do expect fair compensation and benefits, there's no getting around it. If an employer does not offer something fair, odds are they're not going to get to these other things. But once it's there, once there's fair compensation and benefits, these other rewards matter. And in particular, these non-monetary rewards. These are the three areas on the grid we looked at, but there's plenty more if you think about what's important to you. You might have something that's not quite listed there, but for you it's that special thing, but I think the carry away thought here is for employees, these non-monetary rewards really make a difference. So, we've so far looked at the importance of non-monetary awards,we just went in-depth about the value to the employee, now we're going to look at why employers think this is a good idea too.
