25 Feb How Do Total Rewards Statements Improve Retention?
Studies show that voluntary quits have increased steadily over the last five years. Independent research conducted by Hay Group pegs the cost of replacing an employee at 150% to 200% of the annual salary. Under such circumstances turnover is a global issue affecting businesses of all sizes. Disengagement is identified as one of the main reasons motivating turnover. A lack of enthusiasm for work often stems from dissatisfaction around pay. What employees tend to ignore is the fact that retirement and savings plans, health and life insurance and even intangible benefits like gym access, car pool and soft skill trainings can be treated as financial investments made on behalf of their employer.
This perspective shift results in:
- Increased motivation to perform well
- More engagement
- A sense of loyalty and thus a proclivity to stick with the company that takes good care of needs and wants
Total rewards statements are personalized breakdowns of all the components of an employee’s compensation. But the creation and distribution of such tailored communication is tedious and requires a lot of work. This is where retention tools like total rewards communication platforms are useful. They offer hubs where employees can easily access a summary of their salary, benefits, equity and more. Total rewards communication systems give employers a strategic tool for effectively communicating compensation to employees.
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!