Well-rounded compensation and benefit packages have long been the standard by which companies have demonstrated overall value to associates. Offering a variety of benefit options can help an organization elevate its perceived rank and attract higher quality candidates for future growth. However, gaining this competitive edge in the job market can only be achieved by creating a communication strategy that includes an explanation of total compensation to both employees and prospective candidates.
Because a significant piece of an employee’s overall compensation comes from employer-sponsored benefits, it’s important to provide a comprehensive benefits statement so that employees see the “big picture.” A recent study by One Medical indicated that 38 percent of employees believe their benefits get worse each year, and 72 percent of employees said they might choose one job over another if it offered better benefits. Clearly it makes sense to communicate the entire scope of benefits to employees as it can lead to greater loyalty, more compliance with wellness initiatives and enhancement of the corporate culture. For candidates, this can be a clue to the stability and progression of your company.
However, being able to communicate the inclusive strength of a total compensation program in a comprehensive way can pose a challenge for busy benefit administrators and internal HR teams. Outside of a salary, there are many rewards provided by organizations, such as social and community benefits, paid leave and other financial incentives and material bonuses. Each organization is tasked with delivering this message in a meaningful way.
6 simple steps showcase the big picture of benefits
On the plus side, benefits technology has made it possible to streamline this process. By aggregating all your benefits data on single platform, you can generate a total compensation statement that employees can sign on to view any time of the year. Here are some ways to effectively communicate your summary of benefits within a technology platform to current and future employees.
- Explain benefits as offered to all employees regardless of job level. In order to get the most out of a total compensation campaign, it’s important to communicate to employees across the board about what the organization provides to them. While there may be some additional benefits offered to sales, executives and other high level employees, it’s essential to outline gains offered to all.
- Assign an accurate dollar value for benefits. Employees often overlook the value of benefits like company-sponsored life insurance, retirement contributions, and expense reimbursement. It’s critical to include these benefits on a total compensation statement so employees can see the full value of working for your organization.
- Include intangible benefits in your statement. In addition to financial incentives, your organization is likely to provide a wide range of intangibles, which are difficult to monetize. However, these elements can add a significant amount to your compensation strategy. Be sure to list programs such as corporate wellness, special discounts, career and training development, flexible scheduling and work-life balance.
- Design your statement based on employee demographics. Different benefits matter to different employees. Keep in mind that total compensation statements are not a one-size-fits-all solution. Depending on the demographics of your staff, they may be looking at certain aspects of their benefits as having value over other factors. For example, a younger employee may not rate a retirement plan as highly as a bonus program. Ensure that your total compensation statement covers all areas of your talent pool.
- Include an outline of your benefits on your company website. In order to communicate your benefits to potential candidates and new hires, take the time to develop a summary of your benefits displayed on your career portal. Complement your benefits summary with information about your corporate mission and culture, associate success stories and your management team. This will provide a first impression of your company as an employee-centric organization.
- Consistently deliver your summary of benefits. To establish a successful total compensation communication program, make sure to strategically schedule distribution of printed or electronic statements. Time your total compensation statements to be delivered when they are most relevant to employees, such as following open enrollment or corresponding with tax earning statement mail-outs. You can also post them online for employees to access year-round.
Communicating total compensation makes good business sense when it comes to explaining the full measure of a company’s value. By implementing a regular system for gathering and distributing this information, your organization can better demonstrate the investment in its employees.
Learn more about how a modern benefits technology platform can help you effectively communicate total compensation to your workforce.