Total Rewards consists not only in considering the tangible / financial compensation (salary, bonuses, benefits), but also valuing any intangible element such as life-work balance, development and organizational climate, among many others.
Thomas More Management Consulting (TMC) is one of the organizations, in the local and global fields, pioneer in the measurement of Total Rewards and its effective use in Talent Retention. Although the results may vary, our percentage of success in Talent Retention is greater than 85% even in environments where external intangibles, ie those that are outside the control of the organization, are significant.
At TMC we have more than 15 years of experience in Total Rewards measurement in organizations on almost every continent. We use a combination of choice models that allow us to achieve results with minimal bias, since the collection of information is based, among others, on the choice of scenarios rather than on direct questions.
One of the most common choice models in the measurement of Total Rewards is Conjoint Analysis, a technique of measuring relative preferences -not to be confused, for example, with proportion or percentage- frequently used in marketing research.
Among its virtues can be said that, being a technique for measuring relative preferences, does not assume as unlimited resources of organizations but seeks to measure the exchange or trade-off between the various components of the Total Rewards models with the object, among others, to determine the best mix of these to be granted to employees.
Another of its virtues is the form of collection: the data are not taken through direct and conscious questions, but by ordering / choosing different combinations of Total Rewards elements, which minimizes the possibility of obtaining biased results, since the result is unknown to the respondent and calculated once the ordering of options has been made.
Hence another goodness of Conjoint Analysis: it places in a new unit of measurement those financial and non-financial elements and makes them comparable in terms of relative preferences
TMC Studies
The studies that we elaborate in TMC, carried out in different sectors: banking, retail, laboratories, technology and consumer products, involve the development of models tailored to each situation, designed specifically for the cases under study and in any language. Some are academic (with data collected in companies) and other non-academic, which represent the vast majority of studies. More than 4/5 of these correspond to multinational companies whose names can be found in the S&P 500, Fortune 500 and Nasdaq. The samples have included various strata: executives and senior management, managers and supervisors, employees and in some cases, workers.
Methodology
To carry out the Total Reward measurements, a methodological process is generally followed that involves the following stages:
- Definition of attributes and levels. Brainstorming
- Sample pilot
- Initial runs
- Models Redefinition
- Final Sample
- Processing
- Results
Type of results
The results that are obtained allow to see the weight that the different elements of Total Rewards have in the collaborators / employees / workers. In combination with other choice models, they can also choose the most appropriate tools for each case and compare the relative preferences of the employees / collaborators / workers vs the current offer of the organization, contributing not only to the optimization of costs but also to a greater retention of the talent
Versatile and reliable tool
After more than 15 years of case studies under different circumstances, choice models have proven to be a versatile tool to adapt to Total Rewards measurements. These contribute directly to the selection of the best mix of elements and are a cost-effective tool for fast information collection. The general results have indicated, among others, that the intangible elements represent a significant proportion in relation to the tangible / financial ones of the Total Compensation. Likewise, preferences are more permanent over time and explore not only the conscious elements but also, to some extent, the unconscious ones. Your results can show effective cost options. Finally, they generate greater confidence in the respondent and greater possibilities of obtaining unbiased results