The classic total rewards statement offers a personalized view of the financial value that individual employees and executives get from your organization. It should bring your employment deal to life.
But are you driving attraction, retention and employee engagement with your strategic total rewards communication?
Here are three signs it’s time to reevaluate your total rewards statement (and a few tips for effective total rewards communication).
What’s in a total rewards statement?
A typical total compensation statement includes base pay, bonuses, equity compensation, retirement and savings plans, health benefits, and life and disability insurance. It often highlights other workforce rewards, such as voluntary benefits, Paid Time Off (PTO), perquisites and allowances. It’s best practice to include the main components of your total rewards system. The most effective statement captures what makes an organization unique.
It’s driven by the numbers, not by what employees care about.
Core elements of rewards – your compensation package and benefits – still matter. According to a 2018 Glassdoor survey, U.S. job seekers are still focused on salary (67%) and benefits (63%).
But total rewards communication needs to go beyond the numbers to show your full investment. Workers value more than just the basic “table stakes” of the employment relationship.
- Highlight the value of your holistic rewards. Days off and available leaves always attract employee attention. You may also need to add other components, such as emotional wellbeing programs and retirement financial advice.
- Include total reward components that support business outcomes. Workplace flexibility, training and career development opportunities help both your organization and your employees.
Does your total rewards statement go beyond the contractual elements of reward and recognition? Does it help business-critical talent appreciate the distinctive value they get?
Today’s employees expect personalized, modern tools that are engaging and easy to understand. Best practice is to provide productive digital experiences at work that keep pace with evolving consumer needs.
- Create a digital total rewards statement. Even if users print them, employee benefits statements need to be online, accessible anywhere. Make sure your technology supports the experience employees want.
- Automate your data feeds. Compensation and benefits information needs to be complete, accurate and refreshed as often as possible – even if it’s coming from multiple systems. (This is especially true when you’re including incentives or executive remuneration, which are often why execs take the time to study statements they receive.)
- Deliver a consumer-grade user experience. It’s important that strategic communication — including an effective compensation statement — looks great, is interactive and makes it easier to take action.
Does your total rewards statement deliver a compelling experience?
Total rewards statements are just one way smart employers build relationships with employees. Is your total rewards communication strategy maximizing the return on your investment in benefits and rewards? Learn more
It doesn’t reinforce your EVP statement.
A strong employee value proposition (EVP) sets you apart from the competition and distinguishes an employee experience that helps recruit key talent and build loyalty. But, according to Gallup research, only four in 10 employees say they understand their company’s purpose and what makes it different from competitors.
- Start with your unique culture. It has an outsized impact on employee experience at all levels, so your total rewards statement should celebrate the principles that make you a compelling employer.
- Connect to your business purpose. Use your statement as an opportunity to clearly reinforce how individual rewards connect to your business objectives and vision for the future. (You’ve got an advantage if you have an executive sponsor to champion a consistent message, too.)
- Create a bespoke experience. The way you communicate the value of the employment relationship should look and feel like your organization. Do more than add your colors and logo. Make sure it’s tailored to your organization’s values. And it doesn’t hurt if it looks great, too!
Does your total rewards statement effectively communicate your total rewards philosophy? Does it truly demonstrate how compelling and unique it is to work at your organization?
Let’s make it better.
PartnerComm is committed to helping your organization build employee appreciation and loyalty. We can help you effectively showcase your total rewards package within your broader talent value proposition. Let’s talk about the employee experience you want to deliver.