Use Total Compensation Statements to Boost Benefits Participation
Most employees are generally aware of the benefits and salary that an employer offers. However, few may realize the full investment that the employer makes in their overall well-being. This is why a total rewards statement can be so powerful. A total rewards or total compensation statement details all the benefits that a company provides in an organized fashion, giving a complete picture of what the company contributes to workers.
If you are looking for ways to boost employee recruitment and retention efforts, while encouraging employees to participate in leading healthier lives, here are some ways to get the most from the benefits you offer.
Create a Total Rewards Statement That Speaks to Employee Needs
When thinking about total compensation, try to do so from the perspective of employees. Consider the needs that that may have, such as:
- Do the benefits help me to stay healthy?
- Can I understand the benefits as they apply to my lifestyle?
- How do my employer benefits compare to those offered at other companies?
- How much of the benefits are paid for by my employer vs. myself?
Structure the Total Rewards Statement
You may offer a great deal of employee benefits, but they are varied and hard to understand. Go through all your perks and group them by a category that employees will understand. For example, you can group all health-related benefits together, all financial benefits together, family and individual benefits together, and any special perks the company offers together. Your total rewards statement then appeals to employees who are in different stages of their lives.
Be Transparent With Total Compensation
Your total compensation statement will best serve your goals of increased participation if you put things into clear dollars and cents. Breakdown the individual benefit costs by employer costs, employee costs, and then add a third layer by indicating what it costs not to use the benefits. What does this look like? Communicate the value of the benefits based on claims data. An example of this could be an employee who purchased dental insurance, but who has not used this benefit yet—therefore did not reap the benefit of saving $1200 on standard dental care this year.
Offer a Special Incentive for Using Group Benefits
Many times, employees purchase their benefits without giving much thought to when and if they will ever use them. As a result, they are wasted dollars. Make it a point to provide a special incentive for employees who schedule an annual physical, a dental cleaning, and at least one trip to a wellness provider in the area. This can be a non-cash incentive, such as a reduced premium on next year’s coverage. Or you can provide a cash bonus for accomplishing each of these goals. Add this information to your total comp statement.
Promote and Market the Company Benefits All Year Long
A total rewards statement is not simply a document to mail out once a year. Instead, it works best when it’s part of an overall marketing strategy of promoting the value of benefit programs and use during the entire year. Make sure that employees know how and where to get their hands on a copy of an updated total compensation statement, go over this with them in employee meetings so they understand what they are looking at, and create marketing materials around this subject. Posters and employee success stories work well for this, and company swagger handed out during open enrollment periods can be fun too.
Remember, employees need to be continually educated about the benefits that they are eligible for, and a total compensation statement is just part of this process. Have a central point of contact for employee benefit programs, and make total comp statements available on demand.