This paper aims to draw on a national study of US airports to offer practical insights on total rewards as a workforce strategy, with lessons that transfer directly to any employer navigating budget constraints, workforce diversity and changing labor demographics.
This study draws on the authors’ reflections and findings from our National Academies of Sciences sponsored Airport Cooperative Research Program report which combined a literature review, survey of over 70 airports throughout the US, and six in-depth interviews.
Core benefits are nearly always offered, while differentiated rewards that can be used to create a competitive advantage in the labor market are less likely to be offered. Budget constraints are the primary barrier to innovations in total rewards packages; however, those constraints can incentivize more thoughtful total rewards design. Notably, a significant communication gap exists where current and prospective employees do not fully recognize the full value of financial and nonfinancial rewards they receive. This gap can create an issue with an inaccurate perception regarding total rewards and can lead to recruiting and retention problems.
HR leaders should invest in thoughtful total rewards design that considers the needs of the organization, needs of the workforce and the sorting effect. HR leaders should also invest in effective communication of the value of total rewards through the employee’s tenure, as well as leverage nonfinancial rewards strategically with benchmarking across regional labor markets.
The paper reflects on and translates findings from a national synthesis of total rewards into actionable guidance for any employer facing workforce and budget challenges, introducing the concept of a total rewards perception gap as a practical and high-return focus for HR leaders.
