14 Jan What Do Total Rewards Statements Achieve?
You already know what a total rewards statement is, and chances are your company may already use them. Typically, an employee benefits statement is presented annually. It provides a comprehensive valuation of compensation, benefits, and any additional perks. But besides this basic function, do you know what total rewards statements are really achieving on their own?
Ultimately, it’s up to you to decide whether you want to offer total rewards statements alone, use them in conjunction with a portal through which employees can access benefits-related information, or skip them altogether and use just a portal instead.
Here are a few things to think about when making your decision.
What Total Rewards Statements Achieve:
- Increased Employee Engagement
- Fewer Voluntary Quits
- Increased Retention
- Can Engage Employees’ Families (to an extent)
Many companies have success using total rewards statements. Certainly, presenting employee benefits statements is a better choice than giving employees nothing at all. With that said, there are a few drawbacks to using employee benefits statements alone which you may want to consider:
- It Can Create a Burden on HR: The annual preparation for employee benefits statements can increase support costs for HR, and they can also take months to prepare.
- They’re Costly: Employee benefits statements, when presented annually, can be costly to prepare and may even wind up costing an organization upwards of $100K.
- They’re Not Future-Focused: Employee benefits statements relay information that already happened; thus, they’re technically outdated before they’re even delivered.
Thus, many organizations are finding that a comprehensive total rewards system – in which communications regarding benefit information and other employee perks are exchanged regularly – is more effective than using statements alone. Again, while issuing employee benefits statements is certainly one way to help employees understand what your company offers, if you’re seeking a way to improve engagement and productivity, you may fare better with a total rewards system, which takes an ongoing approach instead of being done as a yearly event.
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