OCTOBER/NOVEMBER 2009

Benefits of Total Rewards Statements

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Your employees could have top of the line compensation, Benefit Plans, and workplace development programs, but without knowing what they have, they cannot appreciate the value of these offerings.

Often, employees are left to sort through various sources to determine company investments in their compensation, health benefits, retirement & savings, income protection (Life insurance, AD&D, EI, etc.), and reward & recognition plan information. As the sources are in various formats and viewed at various points throughout the year, it is often difficult to gauge the total investment their employer has made on their behalf.

If you want your employees to be engaged, a Total Rewards Statement will let them know exactly how much they are valued in the workplace. The more engaged an employee is, the more emotionally connected they are to their work, which will have positive outcomes such as enhanced loyalty. Recognition plays a large part in developing employee engagement and Total Rewards Statements can be a cost-effective but meaningful way to provide employees with the information they need in order to feel appreciated.

Providing employees with the investments that you, as an employer, have made towards all areas of their compensation in one concise, visually appealing document can have a great impact on employees’ perception of their compensation. Plan members who understand the aggregate value of their plans are more likely to appreciate them. A Total Rewards Statement emphasizes the monetary value of their benefits, which is often unknown or completely underestimated by employees. Otherwise, employees may feel their compensation consists of what they take home on a bi-weekly basis and nothing more.

Total Rewards Statements serve as an information piece that combines simplified plan summaries along with merged employee data and can be created in various formats. In addition to personalized employee compensation figures, other information pertaining to employee and employer contributions, optional benefits, wealth accumulation plans, and other health and wellness initiatives may be included.

Additionally, pertinent corporate messaging or initiatives can be included to enhance employees’ sense of involvement with your overall goals and achievements. Knowing how their daily work fits into the bigger picture will potentially result in improved employee engagement. K+A designs Total Rewards Statements that reflect our clients’ corporate branding and specific offerings, and can be tailored to reinforce corporate initiatives regarding compensation, such as salary freezes or benefit reductions.

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