Would a coach outfit a winning basketball team with the same-size sneakers and jerseys?


Would a top chef serve the same meal to all her restaurant patrons, regardless of what they ordered?

Heck no!

Even fast food chains encourage you to “have it your way,” so why is it that most employers -- even some of the best and brightest -- provide the same rewards packages and perks to all their employees?

We went on a mission to investigate this question, with support from a WorldatWork research grant (check out the full report, “Beyond Compensation: How Employees Prioritize Total Rewards at Various Life Stages,” and look for an upcoming article in the WorldatWork Journal).

What did we find? Unsurprisingly, different rewards packages are appropriate for different employees. The critical factor? Employees’ life stage.

So, here are a few ways to customize your rewards package for your employees. The added benefit is that by customizing your rewards rather than going with the “one size fits all” approach, you can save a pretty penny, too.

1. Offer flexible work arrangements, and use them as a retention tool for high-potential employees who are new parents.

Our survey of nearly 700 employees (working 30+ hours per week) showed that life-work balance was significantly more important for parents with young children compared to all other groups. Specifically, this finding holds true for parents whose children are under the age of 6, or not yet in school full-time. These parents are balancing 30+ hours of work outside the home with the 24/7 job of parenting, and trying to negotiate childcare arrangements. Flexibility is a must, and is important for both moms and dads.

However, moms of young children (under 6) in particular place life-work balance above all other employee perks: compensation, benefits, development, and recognition.

Even though flexible work arrangements are most appealing to parents with young children, we know from our database of over 40,000 respondents that life-work balance is the most important aspect of engagement for under-40 year olds, and second most important for employees who are 40 and over.

In other words, almost every employee can appreciate a little flex time, and it may be a key factor to retaining your best and brightest who have just entered parenthood.

Now, what can you do about it?

• Start by modeling and promoting a healthy life-work balance. If managers are handcuffed to the desk 60+ hours per week, employees feel they must follow suit, regardless of workplace policy.
• Explore flexible work arrangements, such as telecommuting or compressed work weeks. Remember that one arrangement does not suit all employees; flexible arrangements must be tailored to the position, the employee, and the company, so that all can reap the benefits.
• Check in with employees about their schedule, and whether it’s working for them. Some new parents might be interested in scaling back to a 35-hour work week, even if it means a decrease in salary or benefits.

2. Rethink and retool your benefits packages.

Our research found that benefits were significantly more important for employees whose partners/spouses do not work full-time. The trend was particularly significant for female breadwinners ages 30 and over. Because their partners are unlikely to be eligible for benefits -- either because they do not work outside the home, or because they work part-time -- these breadwinners see benefits as critical to their rewards package. In many cases, they carry benefits for the entire family.

What benefits packages do you offer to employees? Is it the same across the board? Should it be?

It may be time to rethink your benefits packages.

For example, if you’re not currently offering insurance to employees because of cost, consider offering some coverage to only those employees who are not insured through their spouse/partner’s employer. It might seem unfair to offer different things to different employees, but remember that not all employees need -- or want -- the same benefits.

Check in with employees to find out which benefits are most important to them, and -- when possible -- negotiate their benefits packages accordingly. For instance, some employees might favor more time off, even if it means a reduced salary.

3. Attract and retain your “rising stars” with development opportunities.

Younger employees with less experience tend to value development opportunities more than older, more experienced employees, according to our research. In particular, employees under 40 who do not yet have supervisory experience place significantly more importance on development. These employees may be looking for opportunities to learn and grow precisely because they hope to “climb the ladder” and advance in their careers.

Because young employees represent the biggest turnover risks, it is especially important to keep these employees engaged. Moreover, Deloitte found that lack of career progress was the number one factor that could push Gen X employees to switch jobs, and the number three factor for Millennials (find the 2009 report, “Keeping your team intact,” here).

What are some cost-effective ways to provide development opportunities to your young talent?

• Offer your rising stars the opportunity to assume leadership roles on projects or in their work group.
• Create a personalized training plan with your employees to help them grow in their current roles, while also acquiring new skills. Remember that young employees need assistance in developing their learning plans.
• Explore mentoring and job shadowing programs, to give young employees opportunities to connect with and learn from employees who are more experienced.

Although it’s easier to treat all employees the same, it’s not always best, and it’s not always fair. Ask your employees to prioritize the rewards that matter most to them, and be creative in negotiating a package that will suit them and the organization. At the least, it can’t hurt to start the conversation...

For more information on “Beyond Compensation: How Employees Prioritize Total Rewards at Various Life Stages,” check out this video:

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