New Survey Shows Link Between Understanding and Appreciation of Total Rewards

Over breakfast the other day with a CEO friend of mine we were discussing the ongoing challenge of recruiting and retaining good employees. As we were chatting, I showed him a few examples of total compensation statements that RewardsFocus had recently delivered; he commented on how necessary these communications are since so many employees just don’t get it – they all too often lack a solid understanding of the full value of their benefits and compensation.

This impression is backed up by several recent studies. For example, one study found that nearly 80% of employees underestimate the value of their total compensation.

RewardsFocus recently conducted a survey of over 250 employees to look at the connection between employee understanding of total compensation and job satisfaction and engagement. The results were quite interesting:

• 18% of the employees responded that they had little or no understanding of the value of their total compensation package
• Of that group, only 39% reported being satisfied with the total compensation package (and 0% reported being “very satisfied”)
• In contrast, 76% of employees who reported a high level of understanding of their total compensation package said that they were satisfied or very satisfied with their total compensation package

Providing employees with total compensation statements is one of the most effective ways to make sure that employees have a clear and complete understanding of their total rewards. Deeper understanding – and appreciation – of total rewards directly contributes to greater employee productivity, engagement and retention.

If you aren’t currently sending total compensation statements to employees – or if you are sending statements but are looking to improve them – we would love to help. Give us a call at (301) 850-6690 or email us at info@rewardsfocus.com.