MEA TOTAL REWARDS STATEMENTS

COMMUNICATION IS THE KEY TO EMPLOYEE SATISFACTION

Communication of the total cost of benefits programs (total rewards), rather than the actual richness of benefits programs, is the key to employee benefits satisfaction. A recent Watson Wyatt WorkUSA® study studied the satisfaction level of employees regarding the benefits programs provided by their employers.

The study compared the benefit satisfaction levels of employees who work at organizations with rich benefit programs compared to the benefit satisfaction levels of employees who work at organizations with less rich programs. Interestingly, the study showed a 22% employee satisfaction level for those who work at organizations with rich overall benefits but poor benefits communication strategies, compared to a high 76% employee benefits satisfaction level at companies who effectively communicate the value of less generous benefits.

The study also linked higher employee turnover with poor benefits communication strategies. Watson Wyatt also found that the turnover rate of top-performing employees is 17% at companies who offer a rich benefits package but do not communicate it effectively. In contrast, the turnover rate for top performers is just 12% at companies who offer a less generous benefits package but effectively communicate its total value to employees.

The results of the study correspond with actual experience of organizations who communicate the total cost of employee benefits through annual Total Rewards Statements. Companies find that employees are pleasantly surprised when they receive data indicating the total cost of their benefits programs, and respond positively.

MEA is excited to announce that we now offer Total Reward Statements for our members at a nominal price. The two or four-page statements are bright, colorful, and easy to read, splashed with bold graphics and charts. They are unique for each employee and typically include a summary of the benefits provided, an outline of the company/employee portion of benefits, the employee’s current benefit elections, and a graphic display of the various components of an employee’s total rewards. For more information about Total Rewards Statements and to obtain a sample statement, contact Carrie Theisen, SPHR, MEA Sr. HR Consultant at (800) 662-6238 or ctheisen@meainfo.org