Effectively communicate to your current and future employees the total value of the compensation and benefits you provide with a total rewards statement and realize better employee engagement and performance.
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As a business owner, you’re aware of the costs associated with employee benefits and compensation packages. The amount of time and money it takes to offer these perks to employees can seem overwhelming, but there are simple ways for you to lessen the burden and improve your employees’ satisfaction and recruiting efforts. This process begins with analyzing your current offerings and employee needs and continues with establishing a program that is comprehensive, modern, and accessible to employees.
Encompass All Needs
Health insurance and paid time off are benefits expected by most full-time employees and it is important to ensure they are customized to meet your business’ needs. There are a variety of health insurance plans to offer, including Health Maintenance Organizations (HMOs), Preferred Provider Organizations (PPOs), Point-of-Service Plans, and more. Providing vision and dental insurance is another way to benefit your employees. Some employers even offer flexible spending accounts (FSAs) that allow employees to choose where their expenses are used, including at general practitioners, optometrists, dentists, and specialists.
To combat the spread of illness due to employees attending work while sick, employers can allow paid sick leave for a certain number of days. Traditionally, each employee gets two weeks to begin with and additional days as they gain tenure at the company. To combat the fear that this option will cause a loss in productivity and collaboration, establish a tracking system that allows for communication and the monitoring of employee’s projects and a secure cloud platform that allows access on the go.
Offer Outside the Box Perks
In addition to traditional benefits, there are many steps you can take to add value to your workplace. One of the most cost-effective ways to boost morale and loyalty is to recognize employees for their hard work during company meetings and via company-wide emails or announcements. Other options include investing in organizations that your employees can join for networking or to learn from. This is a popular option because it allows your employees to learn and network while promoting a strong brand in your community. Additionally, many companies are beginning to offer corporate wellness programs. Providing an in-house facility or discounted memberships will boost your retention and recruitment and many healthcare providers offer discounts to employees who exercise regularly, as it reduces the number of illnesses.
One of the most important steps you can take to modernize your benefits and compensation packages is to invest in cloud-based software that will store, manage, and distribute this data. This kind of software eliminates the confusing and unorganized paperwork that bogs down both HR employees and team members while keeping a record of and easily distributing notifications of each addition, elimination, or change.
It is important to take your time when developing this offering, as it is uncustomary to rescind these offerings and inconvenient to change them frequently. Establishing this type of employee benefit and compensation package will create more loyal employees and establish trust with potential team members, benefiting your recruitment and retention along the way.
No one wants to feel like a number. In fact, people are evaluating their careers and overall job satisfaction by a new set of metrics. This is especially true of up-and-coming generations. Employers are facing a paradox: how can they create a unique and personalized employee experience while also making it scalable and affordable to manage? To solve this unique challenge, many employers are turning to the power of a personalized total rewards statement.
As the demographic of today’s workforce continues to change, new motivators affect how a company attracts employees. In addition, the appeal of the nomadic gig economy poses a serious threat for companies trying to retain top performers who value the freedom of a freelance lifestyle. Despite these fundamental changes in the job market, a study conducted by MetLife finds that customized total rewards statements are a useful tool in both attracting and retaining employees in today’s job-seeker market.
Personalization Matters to the Team
In the past, total rewards statements were a once-a-year occurrence. With the rise in “on-demand” everything from banking to shopping, people have become accustomed to being able to login and manage their lives via a customizable, online system. Employees value the ability to check their total rewards statements anytime, anywhere. Providing access to personalized statements whenever needed serves a dual purpose: it provides an opportunity to deliver a personalized experience that employees have come to expect and it allows employees to validate their value within an organization on-demand.
Competing for Talent in an Employee Market
There’s little doubt that today’s job market is driven by the job-seeker. As candidates grow more sophisticated with the way they receive information, attracting today’s tech-savvy candidates requires understanding their motivators and appealing to them. Similar to static total rewards statements, job offer letters have become forgettable. Today’s candidates want to feel great about a possible job offer. They want to feel like they’re working for a forward-thinking company that truly cares about employees as people, instead of cogs in a machine. Offering customized, digital job offers complete with a flushed-out compensation statement can be an essential component to establishing an attractive company culture, increasing the chances of landing top talent.
Whether your challenge is employee retention or it’s attracting talented job candidates for hard-to-fill positions, it’s possible that the level of personalization in a total rewards statement can make a huge impact on how your company is portrayed in the minds of today’s on-demand, tech-savvy workforce.
See You at the 2017 Total Rewards Conference
If you want to learn more about the current tech-savvy workforce and how to attract them to your organization meet up with us at “On Their Terms: Engaging Millennials (and Your Entire Workforce)” at the #WorldatWork 2017 Total Rewards Conference in #WashingtonDC. See you there!
On Their Terms: Engaging Millennials (and Your Entire Workforce) – Tuesday, May 9, 9:45 AM
Amy Stern, Director of Employee Engagement Research, BI Worldwide
Christy Thompson, Vice President of Humans, Sunglass Hut
As revealed by 30 for 30’s “Broke” and HBO’s new show Ballers, many professional athletes “go broke” after their playing days are over. They just don’t know what to do with all that money – and sometimes owning a car wash just isn’t a great investment. That’s why Jeff Fisher, head coach of the St. Louis Rams, requires mandatory financial counselling before his NFL draft picks are allowed to sign their contracts. And there’s an HR lesson to be learned from it.
Today, competitive companies offer strong retirement and health care plans. But they’ll go to waste if employees don’t understand the benefits they’re receiving or how they’re a reflection of the way you value their services. Taking steps to explain the ins and outs of the 401ks and health care plans can make all the difference.
Your Position: Strong Savings
Like a rookie NFL player that’s trying to earn a spot in the league, it can be hard for young employees to care about retirement. Age 67 is just so far away, and they may not realize that $10 per month just doesn’t add up to a comfortable life after work. And if they don’t understand the options, they’ll never be able to put them to full use. Bring in a financial advisor to brief the team on the following items:
Pre-tax and Roth 401(k)s
The difference between a mutual fund and an index fund
Targeted retirement funds
Social security’s future
The importance of saving early and often
Employer match (and why your number is competitive)