Bridging the employee knowledge gap around total rewards can unlock hidden value for both employers and workers.
Employee benefits are an ongoing feature of employment and should be promoted and championed regularly, but if it appears your employees don’t understand or are unaware of the full extent of their benefits package beyond their salary and pension, they’re not alone.
A recent survey by Group Risk Development (GRiD) – the industry body for the group risk sector – revealed one-third of employers said their employees had little to no awareness or understanding of all their benefits, and only 44% believed they understood all elements of their rewards package.
Many employers are realising they need to change the way they communicate their benefits, with 39% vowing to increase the encouragement they give employees to use their benefits in the next year, according to the same survey.
Benefits of joining the dots in employee knowledge
When employees are unaware or don’t fully understanding the full range of benefits offering of their organisation, it’s a missed opportunity for both the employer and the employee.
A strategically designed total rewards communication program reaps many benefits for both employees and employers, such as:
- improved business performance and stronger overall results;
- attraction of new talent;
- retention of existing employees; and
- improvement of company culture.
So what can employers do to bridge the total rewards knowledge gap for employees?
How to enhance employee understanding of total rewards
Ensure messaging resonates with employees
A comprehensive rewards package should resonate positively with employees across all levels of your organisation. It should be something that assists both recruitment and retention - inspiring candidates to join your organisation and motivating the best talent to perform and stay with you.
But if the carefully thought-out monetary and non-monetary benefits you’re offering aren’t getting the engagement you expect, what should you do?
Perhaps it’s time to reconsider the way you’re presenting your total rewards – what impact could the simplification of your messages and the addition of an emotional element to your rewards communications have?
Buy-in from organisational leaders
Before we look at ways you can give your rewards a much-needed boost, it’s vital you ensure all leaders within your organisation are aligned with your future total rewards strategy.
Senior executives need to be champions of total rewards, advocating the benefits they bring to the reputation and culture of the business. They should also be determined to promote the rewards in ways employees can easily understand and relate to.
Right message, right time
Employers need to ensure they communicate the right message at the right time - spending just a little time thinking about when you send these messages can result in a better response.
For example, you’ll likely boost engagement levels around gym membership benefits if you send communications in early December with a follow-up just after new year, as January is the time these memberships spike when people start thinking about their new year resolutions.
Regular communications
Often, employee confusion around total rewards stems from insufficient exposure and awareness.
As these benefits are an integral feature of employment, they should be communicated regularly at different touch points during your employee’s time at the company. You should aim to:
- incorporate them into your recruitment process at the hiring and onboarding stage; and
- maintain regular, multi-channel communications to keep total rewards fresh and front of mind for all employees.
Be mindful not to inundate people with communications – subtle, well-timed reminders will work best. Remember right message, right time.
Consistent, not complicated
Producing engaging rewards communications needn’t be time consuming or expensive. A short, simple email can often be enough to share news of a benefit. On the other hand, you may wish to share information through more elaborate statements or unique online experiences. Much depends on the time and budget available, but the messaging and communications needs to be consistent – reaffirming the recipient is a valued employee.