According to a survey by Aon Hewitt, employers who have implemented a total rewards statement determined that employers who use them believe they are effective at helping improve employees’ awareness of the value of their benefits and employee retention.
32% of Canadian firms polled for the survey have implemented annual total rewards statement for their employees. These personalized statements summarize each employee’s base compensation, as well as the value of health care benefits, retirement and other savings programs, vacation and any other rewards received, to allow employees to understand the full value of their compensation. The success rate of this initiative is almost 100%, says the study. Some firms are even starting to use the tool as part of their recruiting efforts, to entice candidates to join the company.
The study focused on the impact of the total rewards statement in various areas. Respondents said it was effective/very effective in the following: improving employee understanding and appreciation of their benefits and organization’s total investment (81%), increasing engagement (74%), making retention easier (72%), increasing participation in voluntary savings plans (69%) and increasing employees’ savings activities and participation (66%).