Insights from HRSoft’s Live Webinar with HR and Compensation Industry Insiders

Total rewards programs are powerful tools for driving performance and retention, yet many organizations struggle to make them tangible for their employees.

In a recent webinar hosted by HRSoft, Glizcel Ditto (Executive Director of Client Solutions, HRSoft) sat down with Jody Burton (Senior Implementation Consultant, HRchitect) and Pete Caporale (Head of Product, Benefitfocus) to dissect this challenge. The consensus? While organizations invest heavily in rewards, most are only “somewhat confident” that their employees understand the full value of the package.

Here are the top takeaways on how HR leaders can bridge the gap between complex compensation strategies and employee perception.

1. The Core Problem: Complexity and Communication Gaps

Why do employees undervalue their total rewards?

The disconnect often stems from how employees view their pay versus how employers view the investment. Employees typically equate “rewards” strictly with salary and bonuses, often viewing benefits merely as an expense deducted from their paycheck rather than a significant employer contribution.

Pete Caporale highlighted a stark industry contradiction: While 74% of employers underutilize their workplace benefits, only about 42% receive a total compensation statement.

The panelists identified three barriers to clarity:

  • Overwhelming Complexity: Modern strategies include numerous programs that manual processes simply cannot support.
  • Disparate Systems: When compensation, benefits, and wellness data live in different silos, transparency and accuracy break down.
  • The “One-Size-Fits-All” Trap: Assuming a homogenous workforce leads to generic communication that fails to resonate with diverse employee needs.

2. Moving From “Stale Milk” to Real-Time Value

How can technology improve total rewards engagement?

For years, the standard solution was the annual total rewards statement. However, in today’s fast-paced environment, this approach is obsolete.

“I would never go and drink stale milk… If I’ve gotten two raises, or if I’ve got promoted since my last total reward statement, it’s now out of date, it’s expired, it’s stale.” — Pete Caporale, Benefitfocus.

To drive engagement, HR leaders must pivot to real-time access:

  • Year-Round Total Reward Portals: Employees need on-demand access to their rewards data, without needing to contact HR for basic information.
  • Moments that Matter: Communication should be triggered by life events—such as marriage, merit increases, or annual enrollment—when employees are actively looking for financial guidance.
  • AI and Personalization: Leveraging AI allows organizations to answer employee questions in real-time and guide them toward underutilized benefits, effectively “meeting them where they are.”

3. Total Rewards as a Strategic Business Driver

How does Total Rewards alignment impact the bottom line?

Total rewards should not be viewed solely as an HR administrative task; it is a critical retention tool. Research indicates that organizations with lower turnover rates boast higher profit margins due to reduced costs and higher productivity.

To maximize this impact, strategies must be dynamic:

  • Agile Goal Alignment: Business goals are no longer static for the year; as business needs pivot, total reward strategies must be flexible enough to pivot with them.
  • Intrinsic Value: Communication should go beyond dollars and cents. Celebrating how employees use “lifestyle accounts” or company matches for charitable donations can drive emotional connection and engagement.

4. The Tech Stack: Best-of-Breed vs. HCM

What should you look for in a Total Rewards platform?

As organizations mature, they often find that their general Human Capital Management (HCM) system cannot provide the depth required for complex compensation and benefits planning. This leads many to specialized “best-of-breed” solutions like HRSoft.

When evaluating technology, the panel advised focusing on:

  • Integration: This is the “make-or-break” factor. Systems must talk to each other to deliver a unified employee experience.
  • Configurability: Avoid “one-size-fits-all” platforms. If a vendor requires you to change your strategy to fit their software, that is a major red flag.
  • Security: With data flowing between platforms, robust security and governance are non-negotiable.

5. The Future: Wellness and Hyper-Personalization

Which area of Total Rewards is most ripe for transformation?

The panelists agreed that benefits and wellness utilization is the next frontier. Despite high spending on programs like mental health support, utilization often hovers around 20%.

To fix this, HR must abandon the “push” method of communication and create an environment where employees are pulled toward relevant information.

  • Experimentation: Don’t be afraid to test new communication channels or program structures and pivot based on feedback.
  • Diverse Learning Styles: From one-on-one meetings to bite-sized digital content for Gen Z, a multi-channel approach is essential to cover all learning styles.

Ready to Modernize Your Approach?

As Glizcel Ditto summarized, the goal is to redefine total rewards to create simplicity and impact. By integrating your data, personalizing your communication, and leveraging the right technology partners, you can turn your total rewards program into your greatest competitive advantage.

Are you ready to move beyond spreadsheets and static statements? Contact HRSoft today to see how we make Total Rewards make sense.