4 Practical Solutions for Poor Total Rewards Communication

4 Practical Solutions for Poor Total Rewards Communication

Even if you think that your organization is doing an adequate job of communicating rewards, there is always room for improvement. Plus, it’s important to consider how things are being perceived from the employees’ perspective. Here’s a startling disconnect: despite the fact that a good portion of employees want better communication when it comes to compensation, only 31% of HR managers think that their employees understand how their compensation plan operates. So, if the majority of companies need to improve compensation communication, what are some things they can do?

Here are a few ways:

  • Minimize Technical Jargon: By nature, HR and compensation specialists use technical language when developing compensation plans. Yet, it’s important to keep in mind that not all employees will be familiar with some of the terms used. One way to simplify the language is to seek out a communications expert in the company. It could be a person in the HR or marketing department, and/or someone with an English degree. Once you’ve identified this person, see if you can collaborate with him/her to marry communications and technical expertise to create a comprehensive plan that’s more digestible for all employees.
  • Make It Simple: The person planning the rewards program should design it with simplicity in mind. This will make it much easier when it comes time to communicate not only the plan itself, but also the rationale behind why decisions were made and why things have changed.
  • Share More Information – Not Less: Whenever possible, share as much information as you can. This will help employees feel informed and empowered. Historically, managers were more inclined to share less information with their employees, but the business landscape is moving in the direction of transparency more and more. That’s because business leaders are seeing now that informed (and thus, empowered) employees are more engaged and more likely to stay committed.
  • Don’t Over Complicate Incentives: It’s fine to use incentive programs where that’s what works best in your organization. At the same time, it’s especially important to keep this aspect of the compensation plan simple. You want to make sure that your employees (and your sales department especially) are spending their time focused on efforts to achieve goals, not trying to calculate their bonuses.

Remember, a total rewards strategy as only as strong as your ability to communicate its elements to your employees. By following the four tips listed above, you can improve total rewards in your company for the best possible impact on retention and engagement.


HRsoft is a leading provider of strategic talent management software that improves manager effectiveness and business results. Our full suite of cloud-based HR software solutions includes applicant tracking software, compensation planning software, total rewards software, stay interview software, performance management software, and content management software. For more information on our Total Rewards Software, REWARDview, click the button below!

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