28 May Total Rewards Communication Can Help Employees From Making Big Mistakes
We often think of Total Rewards Communication as a summary of the value of compensation and benefits an employee receives from their employer. It can be so much more. All an employer has to do is use their Total Rewards Communication site to share meaningful information with associates. The results can be huge.
For example, an employer noticed a number of current employees withdrawing funds from their 401(k) plans. Besides losing the potential future investment growth of that retirement plan money, those employees are likely hit with penalties and taxes due upon 401(k) early withdrawals. In most cases, employees were not aware of the consequences of their withdrawals. They saw their 401(k) as a savings account. Of course, since there are annual limits to the amount employees can contribute to a 401(k) plan, the chances are slim that someone can make up for a prior withdrawal at a later time.
To explain the downside of such withdrawals, the employer turned to their Total Rewards Communication web site. A series of short, direct messages and case studies were presented to employees about the financial loss connected with withdrawals. The result: withdrawals decreased and employee 401(k) balances rose.
This is just an example of ways a Total Rewards Communication site can be used to address real issues and help employees with their financial wellness. Other employers provide useful information on their site about avoiding credit card debt, tips for saving more money, financing a child's education and other topics.
Supplying useful information on these subjects, employees receive greater value from their Total Rewards site. Another advantage is employees begin to recognize the site as a place to find useful information. And they become more engaged employees. The employer-employee relationship is strengthened.
With many on-line Total Rewards Communication sites, messages and other content can be personalized so the appropriate messages are presented to the right people. For instance, messages about encouraging enrollment in a retirement savings plan can be presented to those who are not already enrolled.
In addition to financial content, employers also use their Total Rewards sites to share relevant content about participation in medical plans, wellness items, learning and career advancement opportunities.
A few take-aways:
- Using a Total Rewards site to share valuable information with employees is a good business practice.
- The content should be brief and simple to understand.
- Consider using images and videos to make the content interesting.
- Change the content once a month to keep the site fresh for employees.
- Promote the site with e-mails and other ways to remind employees about the resource.
- Share the work. Ask employees, managers and plan sponsors to provide content for inclusion on the site.
With a little effort, the Total Rewards site can deliver strong value for employees – and employers.
HRsoft – The Total Rewards Software Leader
HRsoft is a leading provider of total rewards solutions for mid to large sized employers. For more information on our Total Rewards Software, REWARDview™ click the button below!
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