Personalized Benefit Statements
Do your employees recognize the value of their benefits package?
According to the U.S Chamber of Commerce 80% of worker’s don’t understand the value of their total rewards package, which averages over 42% of payroll
A more informed and satisfied workforce impacts shareholder value by:
- Increasing productivity;
- Improving employee motivation resulting in a more engaged workforce; and
- Reducing the cost of turnover, (surveys show you are 20% more likely to report lower turnover rates), which averages 30% of the employee’s salary being replaced
Total Compensation Statements:
- Close the perception gap between what you actually invest in benefits and what your employees believe;
- Enhance the value proposition by grouping all of your company’s programs and benefits into one comprehensive “big picture” communication; while
Recognizing that sharing cost data is not enough – you must also reflect the level of security the benefits provide to your employees and family by presenting simplified information in plain English.
Total Compensation Statements can also help your employees plan for retirement:
- Provide each employee an estimated amount needed at retirement; then
- Estimate their shortfall, if they have one. Thus you encourage your employees to save the appropriate amount for retirement, while emphasizing the amount of retirement savings derived form your company’s contribution;
You can also boost participation in your 401(k), 403(b) and 457 plans by integrating “tax and match” short-term estimates and long term projections.
Maintaining a comprehensive benefits program, while limiting your commitment to communicate it, only reduces the overall value perception. Surveys indicate that “Communications about benefits had a higher correlation to employee commitment than the actual benefits.”