What Smart Employers Understand About Total Rewards Statements
Summer is when we start to get calls from prospective clients thinking about sending total rewards statements either before the end of the year or beginning to plan ahead for sending statements in the first quarter of next year.
Why are these organizations thinking about total rewards statements? Because while specific goals and priorities may differ from one employer to another – for example, some are more concerned with employee retention, others with employee engagement – total rewards statements should be a key part of every employer’s communications toolkit. Here are our top five reasons why we think total rewards statements are so important:
- Employees can’t value what they don’t understand — Employees consistently undervalue their total compensation package. Total rewards statements clearly show employees the true level of their employer’s investment.
- Maximize the ROI of compensation and benefits — By presenting the full details of each employee’s total compensation package, a total rewards statement increases the odds that the benefits and compensation you provide to employees will be effective in increasing employee satisfaction and engagement.
- Increase employee retention — Employee turnover is expensive and disruptive to operations. A number of recent studies have found that organizations that invest in total rewards communications experience lower turnover rates than those that don’t make the effort to communicate with their employees about total compensation.
- Reinforce the employee value proposition — Total rewards 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.
If you’re ready to move forward with total rewards statements – or just want to learn more – get in touch with us today.