Total Compensation: Is it known? Is it valued? Is it understood?
Employers today are struggling with unprecedented turnover. What was once known as The Great Resignation has now become The Great Reshuffle. Employees aren't quitting their jobs to stay home anymore. Now, they're quitting to move on to bigger and better opportunities. A strategic approach to communicating total compensation could be the ticket to:
- retaining employees
- increasing employee engagement
- improving culture
Total compensation isn't only about the money, though. It is much more than that. Those employee benefits add up. And if your employees don't know about them, they don't have an opportunity to use them. This can lead to a poor understanding of their total compensation. It can also influence whether they feel valued, and their decision to leave.
More Than Money
Benefits vary for every organization. When evaluating total compensation, you should consider every possible benefit you offer. Think beyond the traditional offerings of health insurance and time off. Consider employee assistance programs. They offer so many perks – financial assistance, mental health programs, and legal advice. Of course, that’s not all. See below for additional insight into total compensation.
Knowledge is Power
How do you ensure your employees know about and understand their total compensation? The best answer is to provide consistent communication across multiple channels. Your workforce likely consists of employees of all ages. Boomers and millennials don’t learn the same way. So, your communication strategy should not be a one-size-fits all. It should involve some one-on-one time with each employee. While that may sound impossible to do, there is a solution.
Take advantage of other one-on-one settings. Do your employees already sit down for individual enrollment meetings? That’s a perfect opportunity to ensure they understand their total compensation. Employees can ask questions about all their options. They can also learn how those benefits coordinate with and complement one another.
93% of employees who’ve participated in one-to-one benefits counseling sessions found them valuable, yet only 15% of employees are offered this kind of personalized benefits enrollment experience. ¹
The value of those meetings can extend into valuing their total compensation. And that has the power to create employees who are more engaged, more productive, and satisfied with their job.
This blog is up to date as of June 2022 and has not been updated for changes in the law, administration or current events.