Moving into Q4, organizations are thinking ahead to 2016. For many organizations, total compensation statements are high on the to-do list.
Why should your organization be thinking about producing a total compensation statement? There are many reasons, of course, but here are our top five:
- Employees don't value what they don't know -- Multiple studies and surveys over the years have found that employees consistently undervalue their total rewards package. A total compensation statement clearly shows employees the true level of investment being made by an employer.
- Increase the ROI of compensation and benefits -- By laying out the full details of each employee's total rewards package, a total compensation statement increases the odds that the benefits and compensation you provide to employees will be effective in driving employee satisfaction and engagement.
- Increase employee retention -- Employee turnover is expensive. According to one recent survey, almost half of workers agreed that a well communicated total compensation program would make them less likely to leave their current employer.
- Reinforce the employee value proposition -- Employees - particularly high performing employees - have choices and options. Total compensation statements are an extremely cost effective way to make sure that employees understand the many advantages of committing to your organization.
- Build your employer brand - Total rewards communications help reinforce other communications and initiatives that, taken together, increase the brand value of the organization as an employer.