O.C. Tanner 2025 Culture Report: Total Rewards Can Backfire Without Authenticity
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Total rewards strategies fail “if employees don’t believe their organization has their best interest at heart. Our focus groups and surveys repeatedly indicate that a buffet of benefits will backfire if it doesn’t reflect an authentic concern for people’s wellbeing.” This is one of the findings of the company’s annual 2025 Global Culture Report.O.C. Tanner is a Salt Lake City-based recognition firm.
According to the study, organizations need to understand the difference between employees’ who are surviving and those who are thriving.
“People who are merely surviving feel anxious, financially uncertain, doubtful of growth opportunities, and pessimistic about the future. Their struggles at work impact their ability to survive outside of work,” the authors observe. “Contrast that with people who are thriving. They feel their organization cares about their mental health, they work in a cooperative workplace, and they have opportunities for growth and mentorship along a clearly defined career advancement path. They have hope.”
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When employees do not feel they’re surviving, the report continues, “their unmet basic needs shape their perception of Total Rewards offerings—and they focus exclusively on the offerings that provide financial and physical stability. Only after employees believe they’re surviving will they think about thriving or be receptive to other Total Rewards offerings,” they conclude.
According to the company’s research “less than 40% of workers know the meaning of the term, “Total Rewards,” and only 14% of those people can explain it. Some confuse it with a customer loyalty program.” Thriving employees, they say, are:
- 84% less likely to burn out
- 30% less likely to leave the organization
- 12x more likely to feel high engagement
- 7x more likely to do great work
Enterprise Engagement Alliance Services
Celebrating our 15th year, the Enterprise Engagement Alliance helps organizations enhance performance through:
1. Information and marketing opportunities on stakeholder management and total rewards:
ESM Weekly on stakeholder management since 2009; click here for a media kit.
RRN Weekly on total rewards since 1996; click here for a EEA YouTube channel on enterprise engagement, human capital, and total rewards insights and how-to information since 2020.
2. Learning: Purpose Leadership and Stakeholder
Management Academy to enhance future equity value and performance for your organization.3. Books on implementation: Enterprise Engagement for CEOs and Enterprise Engagement: The Roadmap.
4. Advisory services and research: Strategic guidance, learning and certification on stakeholder management, measurement, metrics, and corporate sustainability reporting.
5. Permission-based targeted business development to identify and build relationships with the people most likely to buy.
6. Public speaking and meeting facilitation on stakeholder management. The world’s leading speakers on all aspects of stakeholder management across the enterprise.
