04 May What are the Advantages of a Total Rewards System?
Total rewards statements can be useful for communicating the comprehensive valuation of employment to your teams, but some organizations are choosing an even more powerful approach to drive engagement, retention, and improve overall business outcomes: a total rewards system.
Unlike employee benefit statements, total reward systems are not just a once-yearly event. Instead, they take a continuous approach. Thus, they achieve the same advantages of statements:
- Increased Employee Engagement
- Fewer Voluntary Quits
- Increased Retention
- Engage Employees’ Families
…but with many more benefits as well.
For one thing, a total rewards system has the ability to better engage employees’ family members, who may be interested in learning more about benefits and taking advantage of the ones that are extended to them. Additionally, here are some of the other advantages that total rewards system have over using statements alone:
- It’s a One-Time HR Project: Instead of spending months preparing for statements every single year, your HR team will only have to prepare for the roll-out of your total rewards system one time. From there, staff members can make updates as needed, but it’s a matter of simply configuring certain elements – not redesigning an entire system. The result is that HR will have significantly more time to focus on other priorities.
- They’re Less Expensive: Because a system only requires legwork from HR upfront, it quickly becomes much less expensive than total rewards statements, which require a great deal of work every single year.
- They Can Be Updated Regularly & Easily: Making changes is simple with a configurable total rewards solution, and the information presented is timely and relevant, instead of outdated.
- They Give You Access to Powerful Analytics: Should you wish to, you can even incorporate predictive analytics for your employees, such as walkaway value, prospective 401(k) growth, and estimations of what their total rewards package could look like in three to four years. This will get your employees thinking about the long-term prospects of working for your company, which is ideal for driving retention.
If you’re ready to turn your employee benefits statements into an even more powerful business strategy that can drive retention, save money, and do more to communicate the full value of employment, then it’s time to start thinking in terms of a total rewards system instead of statements. Read our white paper to learn more.
HRsoft is a leading provider of total rewards software that enables the continuous communication of the full value of employment to the entire workforce. For more information on our Total Rewards solution, click the button below!