Insperity, Inc. (NYSE: NSP), a leading national provider of human resources and business performance solutions, released a new study revealing that high-performing companies offer similar Total Rewards packages as their peers but leverage them strategically for outsized business results. The research, conducted by Incentive Research Foundation in partnership with Insperity, demonstrates that success comes through strategic implementation, consistent communication, and tight alignment with overall talent strategy. The study is based on a survey of 1,200 executives conducted in 2024 and culminated into a white paper entitled, “Optimizing Your Talent Strategy: Increasing Your Total Rewards Impact.”
“The research highlights the critical role of strategy in talent management,” said Megg Withinton, Insperity vice president of enterprise analytics. “Total Rewards are most effective when they are strategic, align with current talent strategies and are communicated effectively for overall success and business outcomes.”
Respondents were categorized into top performers or standard performers based on their self-reported performance across key metrics, including talent acquisition and retention, customer growth and overall business outcomes.
The key findings provide insight into how top-performing companies leverage Total Rewards as part of their overall talent strategy to drive organizational success. Surprisingly, market leaders don’t necessarily offer more robust Total Rewards packages. Instead, they distinguish themselves through strategic implementation and precise alignment with business needs and talent goals.
The research found that top-performing companies optimize the impact of their Total Rewards through:
- Culture and talent strategy: High performers build their Total Rewards programs on a foundation of mature talent strategy and people-first culture. These companies are nearly twice as likely to rate their talent strategy as “excellent” as compared to standard performing companies (44% vs 24%).
- Employee value proposition (EVP): A well-crafted EVP guides talent decisions, with leading companies significantly more likely to consistently use their EVP throughout the employee life cycle of recruiting, hiring, onboarding and engaging employees than standard performing companies (67% vs 38%). The consistent use of an EVP represents the largest performance gap between top performers and standard performers identified in the research.
- Communication: Top performers excel at conveying the value of their Total Rewards package throughout the employee journey, from recruitment through ongoing employment (45% vs. 31% for standard performers). This consistent communication strengthens their talent strategy and deepens employee engagement.
- Targeted rewards: While companies broadly agree that Total Rewards components drive business outcomes, top performers distinguish themselves from standard performers through superior execution. For example, they’re more strategic in their use of non-cash rewards and in offering more substantial recognition to reinforce key behaviors and business goals rather than spreading rewards thinly across the organization. The findings reveal:
- Base compensation is viewed as a critical tool for both top and standard performing companies (38%) to attract and retain talent.
- Performance-based financial rewards such as bonuses, commissions and stock awards are used more standard performers than top performers (33% vs. 26%).
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