Transportation, Hospitality & Services

Rewards
U N DE R T H E S P OT LIG H T

From Great Resignation

to Great Reimagination
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Creative approaches
to reward packages
for frontline workers
A great deal of time and effort The best way to identify what’s most
is spent creating reward packages important to employees’ well-being
for salaried employees—but and quality of life, of course, is to
compensation and benefits for ask them. Businesses whose reward
frontline workers rarely receives packages are developed in response
the same consideration. With to workers’ needs, concerns, and
the competition for frontline aspirations inspire loyalty from
workers heating up, creative, their best employees. And they
differentiated, and thoughtful attract reliable, experienced
total rewards packages are job applicants even in the most
becoming increasingly important. competitive labor markets.

When structuring offerings, it’s Creative, differentiated,

crucial that you gather real time
data on what your frontline workers and thoughtful total rewards
need and value. You need to think
beyond livable hourly wages and
packages are becoming
adequate medical benefits to increasingly important.
rewards like guaranteed shifts,
education credits, and off-cycle To set your organization apart in
bonuses to ensure the elements the eyes of job seekers, you need
of your reward package promote to offer total reward packages
the stability and growth of your that are not just financially
workers—and your business. competitive but innovative, flexible,
and customizable. Some options
to consider:

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M U LTI - FAC E T E D DY N A MIC ,

C A S H CO M PE N S ATIO N PE R S O N A LIZ E D B E N E FIT S
PRO G R A M S Dissatisfaction with compensation
While paying a competitive base is still one of the primary reasons
pay rate is table stakes for attracting frontline workers quit their jobs,
workers, offering a variety of but a host of non-pay related issues,
opportunities for earning additional such as predictable schedules,
cash compensation is key to worker are important, too. Hiring
retention. Having a broad menu managers may have limited ability
of variable pay programs can have to differentiate based on hourly
advantages for both the workers wages, for reasons ranging from
and the organization. Depending management resistance to local
on your employee base, consider minimum wage requirements.
these alternatives: But benefits with measurable
financial value can bridge some
• Sign-on bonuses tied to length
of the distance—all the more so
of service requirement.
if they can be customized to suit
• Employee referral awards for a workforce with diverse needs.
both the referring and the new Workers who are also parents
employee. For example, a referral or caregivers, for example, may
award could be paid out in three prioritize flexible scheduling and
30-day installments during the additional paid time off, while recent
first 90 days of employment. college grads might opt for matching
• Spot awards of cash or gift cards, contributions on student loan
providing immediate positive payments (similar to 401K matching
reinforcement for a job well done. programs). Offering frontline
• Frequent team incentives workers such choices sends a
for meeting weekly or clear message that your company
monthly targets. is invested in their

• Special occasion bonuses,

for example, cash for worker
birthdays, Thanksgiving, or
annual work anniversary.
• Free food, movie tickets,
company logo items, or anything
that your employees value and
will help them feel recognized
and appreciated.

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S U PP O R T F O R LE A R NING Through its College Achievement

Plan, Starbucks offers all US
A N D DE V E LO PM E N T employees the ability to earn
Offering to reimburse or subsidize a tuition-free bachelor’s degree
continuing education costs—for through Arizona State University’s
career and skills training, GEDs, online program. According to a
and bachelor’s degrees—is Starbucks spokesperson, “We
more proof of your commitment believe that when we put [our
to employees’ growth and employees] first, the result is an
development. It also helps both elevated Starbucks experience
parties, expanding workers’ skill for our stores, customers, and
sets and knowledge while making communities.” And in 2021, Amazon
them more valuable to, and announced a plan to cover 100%
versatile within, the organization. of college costs, including books
and fees, for its 750,000 hourly
There’s no shortage of US employees.
companies using flexible learning
and development allowances
to support frontline employee
A DDR E S SING
development. McDonald’s Archways THE CURRENT
to Opportunity® program provides L A N DS C A PE F O R
multiple pathways for employees FRO N T LIN E WO R K E R S
to grow and learn—from improving
It’s clear that to keep today’s
English skills to earning a high
frontline workers satisfied and
school diploma to working on a
productive, companies must take
college degree and career planning.
a fresh approach to compensation,
Since its launch, McDonald’s has
benefits, and recognition. That
awarded over US$165 million
means striving to understand what
in tuition assistance.
workers want and need, offering it
with an emphasis on flexibility and
choice, and building a culture of
respect and recognition at all levels
of the organization.

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The power
of recognition
Many frontline workers perform difficult jobs with limited possibilities or
mechanisms for recognition. Finding opportunities to recognize employees for
a job well done can go a long way toward helping them feel seen and respected
while reinforcing desired behaviors and creating a positive work environment:

KEY
POINTS

FREQUENT
INFORMAL
RECOGNITION

BROAD
GOING COMMUNICATION
BEYOND “ABOVE
AND BEYOND”

TEAM-BASED
RECOGNITION

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#1 #3
FR EQU E N T G OING B E YO N D
IN F O R M A L “A B OV E A N D
R ECO G NITIO N B E YO N D ”
Recognition programs In addition to recognizing
that are rigid, hard to exceptional performance,
use, and require several companies are finding
layers of approval are ways to recognize consistent
the least likely to be used. performance in areas
In contrast, frequent, including punctuality,
flexible recognition options attendance, initiative, and
are easier to implement— desire to help coworkers.
anything from team
celebrations as thanks #4
for meeting a difficult
challenge to informal,
TEAM-BASED
in-the-moment shoutouts R ECO G NITIO N
for a job well done. For More employers are
example, peer-to-peer social recognizing both individual
recognition lets everyone and team performance,
feel seen, heard, and acknowledging the
appreciated for who they importance of teamwork
are and the work they do. to a business’s success.
Team-based recognition
#2 can also inspire friendly
departmental competition
B ROA D and allow for recognition
CO M M U NIC ATIO N of functions such as
Publicly announcing awards marketing and payroll
and achievements to the as crucial support for
broader organization can high-functioning teams.
raise awareness, help build
a positive corporate culture,
and encourage celebration,
all while reinforcing workers’
pride in a job well done.

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R E A DY TO CONTACTS

R EIM AGINE
WH AT ’ S CATHY GUTIERREZ

NE X T ?
SENIOR MANAGER
cathgutierrez@deloitte.com

FR ANCES SYMES
SENIOR MANAGER
fsymes@deloitte.com

MICHAEL GILMARTIN
SENIOR MANAGER
mgilmartin@deloitte.com

SHEILA SEVER
SENIOR MANAGER
ssever@deloitte.com

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