Five Reasons You Need a Total Compensation Statement
With the unemployment rate in the U.S. hovering around 4%, employers are dealing with two difficult challenges – attracting new employees and retaining the ones they already have. Workers are in the best position they have been in for several years; employers need to step up their game in order to remain competitive.
Whether you’re concerned with recruitment, retention, or both, total compensation statements should be a key part of your toolkit. Why do we think total compensation statements are so important? Here are our top five reasons:
- Employees don’t value what they don’t know — Employees consistently undervalue their total rewards package. Total compensation statements clearly show employees the true level of the employer’s investment.
- Increase the ROI of compensation and benefits — By laying out the full details of each employee’s total rewards package, a total compensation statement increases the odds that the benefits and compensation you provide to employees will be effective in driving employee satisfaction and engagement.
- Increase employee retention — Employee turnover is expensive. According to one recent survey, almost half of workers agreed that a well-communicated total compensation program would make them less likely to leave their current employer.
- Reinforce the employee value proposition — Total compensation statements are a cost-effective way to make sure that employees understand the many advantages of committing to your organization.
- Build your employer brand – Total rewards communications help reinforce other communications and initiatives that, taken together, increase the value of your employer brand.
We would love to create a total compensation statement for your organization’s employees. Be in touch and let’s start the conversation.