Total rewards program useless if not understood by employees
It is not just total rewards themselves that help engage and retain employees, it’s the way employers communicate these rewards. The right communication shows employees how much an organization values them. That expression of value, in turn, supports retention.
Presenting a clear and concise summary of benefits can also be an effective tool for attracting new hires and reinforcing a company’s value proposition relative to other opportunities in the job market.
Communicating benefits effectively should make use of all formats: Visual, oral and written. Program complexity, the number and size of work sites, IT capability and employee comfort with technology-based communication are all elements that can impact the approach.
Combining benefit communications with existing safety or corporate announcements can help employers lower the cost of face-to-face communication.
Defining an end target
Establishing goals and defining results is the best place to start. A written end target will make subsequent decisions easier to execute and provide the measuring stick for progress. It could state, for example, “We seek greater member appreciation and understanding of the benefits offered and link this understanding to measurable behaviour changes in service purchase.”
The next step involves creating a road map. But take note — this transformation is not going to happen within six months. It will take at least 36 months to change existing practices and establish scheduled communications. It will also take time to make the necessary changes to communication approaches.
Next, consider other elements that could be included in the communication strategy. Is this the time to introduce that three-tier drug plan? Or is this the time to roll out that long dreamed about “choice benefits” plan?
Then, start plotting communication events. For each event consider the following: audience, purpose, delivery, where the communication will originate and who will execute this part of the plan. Some of the communication pieces may already exist.
The final step is choosing from an array of communication resources. Start simply to ensure the new habits generate momentum. Some easy-to-implement solutions include:
• streamlining a 50-page benefit booklet into a one-page summary
• a once-yearly bulletin communicating program performance and status
• the creation of a benefits board to provide relevant monthly articles on healthy living or dealing with stress
• an annual benefits meeting to revisit all aspects of the company’s health and retirement benefits.
Tailored approach
Once the plan takes hold, the efforts can evolve into more sophisticated communications, such as customized member benefit statements that outline all programs per member (federal programs, provincial programs, company-sponsored programs) and costs associated with each. Implementing a series of customized information pieces to provide timely education relevant to the plan can provide the final nudge to transform member behaviour.
For example, use a drug pharmacy report to highlight shopping preferences. A one-page education piece highlighting dispensing fees, profit margins and the impact on the plan and what members pay out of pocket can assist in curbing this cost.
No communication or education strategy would be complete without targeting all affected parties. Providing high-level case studies for review by senior management is an excellent way to bring them along.
Rob Taylor is a vice-president and director at benefits and pensions consulting firm TRG Group in Vancouver. He can be reached at (604) 714-4410, (800) 315-5115 ext.410 or [email protected].
Miscommunication
Most employees don’t understand benefits: Survey
Nine out of 10 employers think it’s important employees understand and appreciate their benefits, but only about one-fifth (21 per cent) of employees do, according to a September survey of 650 HR managers in the United States.
Methods used to communicate benefits to employees:
• Group meetings (80 per cent).
• One-to-one meetings (58 per cent, though 90 per cent of employers say this would significantly improve employee understanding).
• Internet enrolment (44 per cent).
• Self-enrolment (40 per cent).
Source: Colonial Life & Accident Insurance Company
