5 Surprising Stats That Support Total Compensation Statements
Although the enrollment season is ending, that doesn’t mean your employee communications should stop as well. Benefits education should be a year-round conversation to ensure employees get the most out of their entire benefits package. One way to do this is via personalized documents that showcase the overall value of an employee’s financial rewards called Total Compensation Statements. Read on to learn why recent industry statistics support the need for these documents now more than ever.
71% of Employees Feel Current Employer Education Approaches Are Falling Short
Employee benefit education is important. Benefits are a large expense to employer and employees alike, so it’s important for both parties that employees understand what benefits they have and how to use them. In a recent LIMRA Workforce Benefits Study, “respondents cited multiple challenges to understanding (benefits), from lack of time and overall benefit complexity to insufficient or poorly communicated information.”
Total Compensation Statements clearly define exactly what is included in each employee’s total benefits package, making them an effective education tool. They combat this lack of understanding by being transparent and straightforward about everything included in the employee’s overall financial rewards, including the benefits that are less obvious.
66% of Employees Wait to Review Their Company’s New Benefit Offerings Before Deciding to Stay or Leave
According to Workhuman’s November Human Workplace Index, benefits play a larger role than ever in employee retention. Benefit competitiveness may be the deciding factor for employees who are considering a career change. Whether you are increasing your benefit offering or not, Total Compensation Statements showcase total financial rewards and will likely illustrate important benefits that employees may not have been aware of. Since benefits are key to retaining (and attracting) talent, you want to make sure employees understand exactly what that entails.
6 out of 10 Millennials are Currently Looking for New Employment Opportunities
Millennials make up 1/3 of the U.S. workforce population. Additionally, according to Gallup, they also change jobs more often than any other generation and are the primary age group driving the Great Resignation. As we mentioned before, benefit packages heavily influence employment decisions. That statistic coupled with the fact that the majority of today’s workforce is more likely to change jobs than previous generations mean benefit education and understanding is extremely important. In order to retain top talent, employers need to make sure employees feel valued and Total Compensation Statements can help by highlighting key benefits that employees might not have been aware of.
60% of Employees are Interested in a Wider Selection of Non-Medical Benefits
A recent MetLife Employee Benefit Trends Study employees reported “feeling unprepared, vulnerable, and worried” due to the Covid-19 Pandemic. As a result, there is a higher expectation for employers to financially support and protect their employees, including offering more non-medical benefits. Employers have responded accordingly, and the non-medical benefit market has grown by 20%.
As benefit packages continue to diversify and become more complex, Total Compensation Statements can help clear up any confusion employees may feel. Offering additional voluntary benefits means each employee’s total rewards package may look different year to year depending on what they enroll in. Annual Total Compensation Statements ensure everyone is on the same page and employees know what benefits and rewards they are receiving.
Employees are 156% More Likely to Feel Valued When They are Satisfied with Employer Communications
MetLife found that achieving the right frequency and clarity of employer communications is key to employee wellness and satisfaction in their 2021 Employee Benefit Trends Study. Amid The Great Resignation, Covid-19 pandemic and ever-changing benefits landscape, clear communications are key. As far as educating employees on their total rewards, Total Compensation Statements are concise and transparent so employees can learn about their benefits without a bunch of emails or confusing, text heavy documents.
Want to Learn More?
Learn more in our upcoming webinar How to Engage Employees and Reduce Turnover with Total Compensation Statements or schedule a product demo with our team today to see firsthand how our custom communication services could improve your employee retention rate.
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