According to the Center for American Progress (CAP), it costs nearly $10,000 to replace an employee earning $50,000. For upper management employees, the cost can be 10 to 20 times higher. Then consider the impact of the Patient Protection and Affordable Care Act (ACA) on employee retention. With health coverage available to all and preexisting conditions no longer applicable, employees have more freedom than ever to change jobs. This is why it is so critical to have effective employee retention and attraction strategies in place. One of those strategies is to effectively communicate the value of the benefits you offer via a total rewards statement.
Whether regularly produced in print or hosted online, this statement gives employees a snapshot of their total rewards packages and highlights the value of employer-paid benefits. Without these statements, employees are less likely to be aware of the full value you offer as an employer. This can potentially lead to low morale, dissatisfaction, and, at its worst, departure for an organization that appears to have a better benefits package or that pays an extra $5 per hour. Consider some of the following benefits as well.
• Employee engagement. When you provide information about the investment you’re making in your employee through employer-sponsored benefits, you are also showing employees that you value them. Employees who feel valued are more engaged. And as you’re likely aware, the more engaged an employee is, the more committed he or she is to your organization. Online total rewards statements are particularly effective in driving engagement. They allow you to make regular content updates, such as quarterly commission payments, merit increases, or adding new hires throughout the year. In addition, employees can view archived statements and link directly to benefits providers for more information or to make changes in their benefits.
• Cost reduction. A total rewards statement is an inexpensive way to interact with employees about their benefits. It makes providing information as simple as sending an employee a printed statement or accessing the information at the click of a mouse. Online statements can reduce costs even more because they eliminate printing and mailing costs that are associated with print-only statements.
• Streamlined simplicity. You want your employees to know about the valuable benefits you offer, but expecting employees to proactively seek that information is simply not realistic. The total rewards statement allows you to streamline all this information in one regularly provided document or in one online destination. An effective statement visually demonstrates an employee’s personal total rewards package of compensation plus employer-paid benefits. Your employees may be surprised at how much their benefits add to their personal bottom lines. And that’s a powerful message.
With another open enrollment around the corner, new disclosures required under the ACA, and a competitive job market, your employees are likely paying closer attention to the benefits you offer. Now is the time to beef up your benefit communication efforts and make certain that your employees understand their options and the actual costs.