Two-thirds of European employers to prioritise tailored rewards

New research has revealed that more than two-thirds of organisations across Europe will prioritise offering more tailored rewards for workers who have critical skills.

According to the 2022 Reimagining work and rewards survey by global advisory, broking and solutions firm Willis Towers Watson (WTW), in which it spoke to 1,650 worldwide employers, including from 276 western Europe and the UK, 28% have already reimagined the employee experience as it relates to total reward or are planning to take action, while 52% are considering doing so.

A quarter of employers have already conducted a review on the mix of pay and benefits to reflect the change in use of remote, hybrid or other flexible work arrangements, or are planning to do so, while 46% are considering reviewing it.

More than half (53%) believe their health and other physical or emotional wellbeing programmes need to change in order to support employees in a more flexible and agile workplace, while more than four in 10 (44%) think their retirement and financial wellbeing programmes require altering.

Michiel Klompen, digital product lead, work and rewards at WTW, commented that businesses are learning that the future of work requires a revolutionary approach to rewards, and that those who have access to quality data insights will have an advantage to win over the talent they need.

“A lack of quality market insights around digital skills has contributed towards how organisations have been unable to address the industry-agnostic challenge of attracting digital talent. To design a competitive rewards package, businesses need to have access to insights on the digital skills that are emerging – as well as those that are cooling off – and how they impact pay.

“The ongoing shortage of digital skills is pressing companies to take a different approach. Those that choose a wait-and-see approach will likely continue facing their current recruitment struggles. So, employers must be able to offer a differentiated and competitive rewards package, which is best benchmarked with market-leading insights on skills,” Klompen said.