	Employee Benefits In Focus

Now is the time to make total reward a reality in your business

If you heard about a flexible and cost-effective solution that could help your employees understand the scope and value of the rewards and benefits available to them, surely you’d want to introduce it to your organisation?

Whilst the obvious answer might be yes, the potential of total reward statements to support better employee communications and engagement are only just being recognised by employers. Only one-third of organisations recently surveyed by Accor Services, for example, currently offer total reward statements, with just 26% of companies offering them to all employees.

Total reward statements offer employees instant access to information that shows the total value of their employee benefits and remuneration package. Through total reward statements, employees can review a list of benefits that allows them to understand and appreciate the exact value of their combined salary and benefits for the current year.

Here, Mark Carman, sales and marketing director of Motivano, outlines why total reward can be a win-win for both employees and employers, how to make total reward communications effective and how to overcome organisational reservations about introducing total reward.

A win-win for everyone

Total reward really can be a ‘win-win’ for both the employer and employee. From an employee perspective, the reassurance and support available from knowing exactly what your salary and benefits package is worth can have a huge impact on their performance, engagement and motivation. Certainly, employees who appreciate the value of their remuneration are less likely to actively search for alternative employment.

With the cost of rewards and benefits rising, smart employers, for example, are using total reward to enhance and support their relationship with employees. Companies invest huge amounts of money in employee benefits, as well as training and incentive programmes, so it makes financial sense to ensure employees fully understand the detail and value of these and that they’re making the most of the solutions and services on offer.

Further research by Accor Services (2008) amongst employees supports the case for this, suggesting that only one-fifth of employees fully understand the value of their benefits and one third do not.

Overcoming total reward reservations

Research demonstrates that communicating the value of total reward is high on organisations’ agenda, but what’s stopping employers from taking the plunge?

There are a number of common reasons why organisations have, so far, chosen not to invest in total reward communication. Factors such as time, cost and general resource constraints are often cited as reasons to not make this investment.

Another key concern employers have when it comes to introducing total reward is the accuracy and validity of the data they are able to offer their people. Some are concerned that total reward information is essentially ‘out of date’ as soon as it’s collated and distributed, particularly when it is based on data from the previous year.

Other organisations are simply not confident in the HR and payroll data they hold; whilst they recognise the potential business benefits of total reward, they’re not prepared to make this investment until they’re confident their systems and processes are as accurate as possible.

These reservations, whilst valid, are certainly not insurmountable. Although some investment, for example, will be required, the potential return on investment following an increased uptake in specific employee benefits or reductions in employee turnover can demonstrate the return on investment of total reward.

It’s a question of how total reward is planned and introduced to the organisation. To begin with, many employers rely on basic paper based total reward statements that are launched as part of a planned and managed benefits communication strategy. To be most effective, total reward needs to be undertaken alongside a thorough understanding of what motivates your people and the type of reward and benefit they want to see in their package.

Creating effective total reward communications

If you’ve decided that total reward might be the solution for you, here are five steps you can consider to maximise your return on investment through effective communications:

Create clear and concise messages – make sure your total reward statement supports existing benefits messages. Simple techniques such as using the same terms and phrases across all reward communications will ensure employees are on board and are not confused.
Think about brand and design – take time to ensure the look and feel of reward statements complement and support your existing reward strategy and brand. Ensure the design and content is insightful and appealing, with a high level of personalisation.
Check the accuracy of your data – robust checking at all stages of data collection will help deliver accurate total reward statements. This is a key issue for employees who, if they receive a statement with incorrect data, will focus on what’s wrong, which will undermine your investment and best intentions.
Consider security of personal information – any transfer of employee data must be handled with the utmost attention to security at all stages, particularly when paper statements are being printed.
Work with other internal experts – seize the opportunity to collaborate with other departments and internal experts, such as IT and marketing. Get everyone on board from the beginning, giving all parties the opportunity to shape the statement and understand how they fit into the bigger reward picture.

Total reward is quickly emerging as a best practice tool when it comes to employee rewards and benefits, giving employers the opportunity to deliver the right messages to the right people at the right time. Now is the time to investigate what it can do for your organisation so make 2010 the year to take full advantage of total reward.

Next Steps

Get in touch to find out how total reward can make a positive difference to your people.

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