Total rewards are the entire package of compensation (both monetary and non-monetary) that an employee receives from an employer. Communicating total rewards effectively to employees is essential for ensuring they understand and appreciate the full value of their compensation package.
Here are six top ways to communicate this effectively:
- Total Rewards Statements: Provide personalized total rewards statements to employees on a regular basis. These statements should detail their salary, bonuses, paid time off, benefits, retirement contributions, and any other perks or rewards they receive as part of their compensation package. Be sure to include wellness benefits, career development opportunities and workplace flexibility. Visual aids and clear explanations can help employees understand the full value of what they receive beyond just their base salary.
- Clear and Transparent Communication: Use clear and simple language about the various components of total rewards, starting during the onboarding process and continuing regularly. Employees should understand how their compensation is calculated, what benefits they're entitled to, and any opportunities for performance-based rewards or bonuses. Providing clear explanations and examples can help demystify complex compensation structures.
Almost half of millennials and Gen Z will leave their jobs within 2 years due to compensation. A clearer understanding of the full value of a total employer compensation package can lead to greater employee retention and significant cost savings to the employer. - Interactive Workshops or Seminars: Host workshops or seminars dedicated to educating employees about total rewards. These sessions can cover topics such as retirement planning, health benefits, financial wellness, and career development opportunities within the organization. Interactive elements such as Q&A sessions or case studies can help engage employees and address their specific questions or concerns.
Total rewards can often be a challenge to explain due to technical or complex language and the diversity of today’s workforce. Customized communication sessions that are tailored to employee needs and circumstances can help to overcome these obstacles. - Digital Platforms and Tools: Utilize digital platforms and tools to make total rewards information easily accessible to all employees. This could include a dedicated section on the company website or a mobile app where employees can access their total rewards statements, explore different benefit options, and participate in online resources such as financial planning calculators or wellness programs.
- One-on-One Consultations: Offer one-on-one consultations with HR and/or benefits specialists for employees who have specific questions, need personalized guidance regarding their total rewards package or may be uncomfortable speaking out in front of a group. These consultations can help employees understand how to maximize their benefits, optimize their compensation, and align their career goals with the organization's rewards structure. Explain how this can help them analyze their current benefits offerings, identify areas for improvement, and develop a tailored total rewards strategy that meets their objectives and budgetary constraints.
- Customize Total Rewards Packages: Discuss the importance of customizing total rewards packages to align with the unique needs and preferences of both the organization and the workforce. Encourage considering factors such as industry benchmarks, employee demographics, and company culture when designing their total rewards strategy.
Total Rewards Are Changing!
By implementing these strategies, organizations can effectively communicate the full value of total rewards to their employees, ultimately enhancing employee satisfaction, engagement, and retention. Keep in mind that total rewards are not a one-time initiative -they should be an ongoing process. Regularly reviewing and updating a total rewards strategy to ensure it remains relevant and competitive in a constantly evolving business environment is a crucial element in the communication of a plan to employees.
Ask Professionals to Support You
AGA Benefit Solutions has worked with countless employers to help them effectively communicate their total rewards package to employees, thus attracting and retaining high-end healthy, happy, and engaged employees. Schedule a call with a total rewards specialist today and they’ll be happy to answer all of your questions.
Dan Fortuna is a Certified Employee Benefits Specialist (CEBS) and a member of the International Federation of Employee Benefit Programs. Before Joining AGA, he was a Senior Consultant with a Global Benefits Consulting Firm providing comprehensive consulting services to a diverse range of domestic and international clients. His expertise spans areas such as plan design, underwriting, and claims management, enabling him to deliver complex and effective solutions tailored to each client's unique needs. Based in Vancouver, BC, he is licensed and supports clients across Canada and the Territories.