How SMEs Can Use Total Rewards to Attract, Retain and Motivate Top Talent (Part 2)
How SMEs successfully deployed their total rewards initiatives
In the first instalment of this two-part series, we covered how SMEs could rethink their total rewards strategy in five aspects to gain a competitive edge to attract, retain and motivate valuable employees.
In this article, find out how two SMEs successfully deployed their total rewards initiatives that led to a more motivated workforce and better business results:
Case Study 1: Effective Ground-Sensing and Review to Foster Strong Career Growth for Employees
The SME, a consultancy firm in the science and technology sector, experienced a change in their workforce profile when the company’s growth picked up. They realised that the needs of the workforce had evolved, and they would need to find new ways beyond their standard compensation to motivate employees and improve retention.
Understanding Employee Needs
Supporting Employee Choice and Career Exposure
Regular Review and Improvement
Their strategy paid off as they experienced high growth and retention from 10 to 40 employees in 5 years, with higher employee satisfaction and engagement scores across the board. Such early interventions enabled the company to grow while keeping a cohesive workforce and a steady pipeline for succession.
Case Study 2: Effective Communication and Implementation of Performance Management System to Ensure Fair Rewards
The SME had undergone a significant transformation from a family business in electronic distribution to a semiconductor manufacturer. It extended its operations to four subsidiaries across Asia and Europe and tripled its headcount in the last three years.
With plans to grow the company further, there was a need to ensure employees remained engaged, motivated and skilled to meet the growing organisational targets. This led to the establishment of a fair reward system based on a new performance appraisal system, and formal key performance indicators that clearly link individual and organisation performance to motivate and reward employees fairly.
Leadership Taking the Lead in Employee Communications
Ensuring Proper Implementation
Through strong communication channels and commitment to implement a fair performance management system, the company was able to shift employee mindsets and behaviours to one that strives for performance and achieve business goals in their expansion plans. With clear objectives and targets that were linked to a fair distribution of rewards, staff were motivated to contribute and grow with the company.
In summary, SMEs can effectively implement total rewards when they make the effort to understand the gaps, communicate closely with the ground for alignment and continually review for improvement. This way, they can harness their total rewards strategy to stay competitive in attracting, retaining, and motivating employees fairly.
To find out which other aspects of total rewards SMEs can offer beyond a pay package to compete for talent, read Part 1 of the series.