Total rewards refers to the benefits an organization provides to employees, in exchange for working at the organization. To attract and retain top talent, best practice organizations remind employees on a regular basis of the value these benefits bring.
As consumers, we are used to real-time information. We can scan a product’s code on a shelf and determine which nearby stores
are selling the product at a cheaper cost. We expect immediate responses to texts and know significantly more about our high school acquaintances (with help from social media) than ever before. We also don’t take time to frequently read 5-page articles. We want quick, easy information so we can move on.
Typical Benefits Within Total Rewards
Base Pay/Merit IncreasesVariable Pay (incentives, bonuses, etc.)Health, Dental, Vision InsuranceRetirement Benefits (401(k)/pension)Short-Term Disability/Long-Term Disability
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This mentality carries over into the workplace. Employees want access to the information they need, when they need it, and don’t want to take a lot of time to find that information. Few employees will remember the value of their health benefits after their annual enrollment window is over. Likewise, if you follow best practice and provide your employees with a total rewards statement, they
likely will forget the information included in there after a month or two.
Most employers only talk to their employees about compensation when they receive an annual increase or incentive payment. This is a missed opportunity for employers, especially in today’s labor market.
The unemployment rate across the United States continues to decline. In April 2019, the U.S. unemployment rate was 3.6%. That figure has hovered between 3.6 and 4.0% for the past year. There is also a national trend for people to migrate away from rural and into urban areas.
On top of these national trends, younger employees expect faster advancement and increased development opportunities than previous generations. This combination of factors creates additional stress on employers to find and retain qualified employees to work in rural locations. Employee attraction and retention is a common issue across the agricultural industry.
The change in employee expectations combined with a smaller supply of available talent could cause employees to be more willing to leave the organization for other opportunities. It is easy for employees to forget the value of the benefits and compensation they receive from your organization. Implementing a year-round total rewards communication strategy can help keep organizational investments in employees at the top of the employees’ minds.
A total rewards communication plan is most valuable when it starts with asking the question of: “What’s in it for me?” Consumers are used to ordering products on Amazon, which tailors content based on a consumer’s past preferences. While it is not likely you can emulate this concept in total rewards communications, below are key components to consider when creating and implementing a total rewards strategy.
Content. Not all benefits are created equal. Think through all the benefits that are paid to or given to employees at your organization. This can include benefits with hard costs, such as merit increases and health benefits, as well as soft costs, such as a positive working environment or flexibility in hours worked. Organizations that are strategic in reviewing what is most important to employees and focusing on those benefits will be most successful when launching an ongoing total rewards communication initiative.
When developing content, ensure the language is easy to understand, HR jargon is removed and the content helps the reader better understand the benefit and how it brings value to them as an individual. Ask someone who is not familiar with the content to review communications prior to distribution.
Timing. While some topics could be shared at any time of the year, there are strategic times when it is more beneficial to highlight benefits like compensation and paid time off.
Delivery. Think through the best way to communicate your message with employees.
Depending on the topic and timing, you may want to consider one or more of the following:
Implementing a comprehensive total rewards communication strategy helps employees understand the true value of the benefits they receive. In the absence of information, programs and benefits may go unnoticed or unappreciated. While it may not seem important on a daily basis, understanding the value of the benefits received is critical in the long-term. Your total rewards communication strategy for applicants, new hires and current employees will impact your employee engagement and ability to attract and retain talent.
Are you ready to get the word out? Contact Foundations Consulting for assistance in creating and implementing a total rewards communication strategy.