Use Case: Package Modeler
2021-12-20
Issue
A Client believed that they had a comparative total reward market advantage by virtue of their generous benefits schemes. However, they felt this advantage was not be fully realized because they were not able to easily, clearly and promptly show each employees and candidates the entire package being offered. The cases that they wanted to address were:
An HR partner describing the new total reward after promotion
An employee considering an international assignment (and tax consequence)
A recruiter showing the total reward package to a potential recruit
A manager making a request about the total reward and cost for a specific employee
Barrier
Like many global firms, the Client had no centrally documented library of reward policies, or a reward rules engine that could instantly produce an example of the full total reward for a specific employee or position (based on the individual attributes of the person under consideration) in any geography.
This meant all people who needed total reward data to help make a decision were working with subsets of data or estimated benefits amount. This is damaging as the actual data likely to lead to a more favorable outcome for the Client given their stated competitive positioning. In order to be sure that all forms of Reward are included, the normal practice in global firms is to make a request to reward administrators to calculate a package manually which could take time causing delays in the communications. In situations, such as International Assignments, this could take weeks and would be costly as external tax experts would be needed. The delay risked managers pursuing candidates without knowledge of the true cost of the assignment.
Solution
A digital total reward system completely solves the problem. It has access to all data, all rewards, and all reward policies instantly produce an accurate total reward package for any combination of drivers. It can also show the data in side-by-side format for internal candidates for promotion or international assignments. And it shows the cost to company for managers who are hiring, which is particularly useful for international assignments on weighing the ROI of a specific assignment (compared to a local hire).
Benefits
The Total Reward function response time to queries of business managers and recruiters was significantly reduced to seconds and provided better quality answers using uFlexReward.
Recruiters were able to provide improved transparency of the details that are included in the total reward package for a potential recruit. Recruiters also were more confident in the details which makes attracting top talent more efficient. which was able to demonstrate a market advantage of the package.
In addition, selection of international assignments were optimized as business managers had more transparencies on the total cost of the assignment versus a local hire. This new assessment saved the Client considerable cost reductions in unjustifiable international assignment given the cost of the proposed assignments. Additional cost were saved since the Client no longer had to use an outside expert to develop a cost estimate for each proposed assignment.
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