Multinational Professional Services firm, PwC has introduced a new ‘Total Reward Strategy,’ which entails a range of new pay and reward initiatives to attract and retain staff in the wake of national talent scarcity. There is a shortfall of experienced accountants and consultants due to Australia’s ongoing international border closure. The Total Reward Strategy has been created based on responses taken from employee engagement surveys and has been carefully evaluated by the fifteen members of PwC’s People Council.
Under the ‘Total Reward Strategy,’ the staff will be handed out consistent pay increments. The eligibility criteria will be such that now almost 80% of the staff will qualify for bonuses.
The PwC leadership believes that it is crucial to implement the best reward strategy to attract and keep the best talent by responding to people’s values and motivations.
The new Reward Strategy will see the replacement of thousands of different remuneration bands with a simple, consistent pay structure to increase the transparency and clarity factor for the employees. It is said to be better oriented with employee’s career progression but how the transition will affect the employees who are currently paid above the new bands is unclear.
‘Bonus Simulators’ will be created to expand the firm’s bonus eligibility criteria and calculate their potential rewards. In 2020, 40% of employees received bonuses. Under the revised system, this is likely to be around 80%.
PwC will also invest $ 15 million in a new ‘PwC Academy,’ which will be promoted as a world-class learning platform and education program for employees. The institution will offer a range of leadership courses on subjects like ESG and strategy and create an MBA-equivalent qualification by providing access to credentials from a recognised institution.
The Reward Strategy will provide more significant benefits like offering time to take care of employees’ physical and mental health flexibility around public holidays increased access to a range of deals and discounts, and a ‘Balanced Lifestyle Benefits’ in addition to its existing Wellness Benefit.
The detailed structure and implementation of these programs will be finalised by November.
These changes have been made on the crux of staff feedback. Fixed and variable pay were among their most valued rewards, followed by creating opportunities for career progression and professional development. Trigerred by the pandemic, the world of work has witnessed a great shift in priorities among talent. As the workforce demands more flexibility and values well-being, it is indeed time to rethink the total rewards strategy. In the future, more companies will introduce new policies to boost their employee retention strategy.