What are employee benefit statements?
Employers spend billions on worker benefits every year. In fact, benefits constitute 30-40% of an employee’s total compensation package. It makes sense that employers want to get the most value out of this significant investment.
A recent MetLife study on Employee Benefits shows an alarming statistic:
59% of employees do not fully understand their compensation and benefits program and wish their employer provided better communication about it.
This same survey also says, employees who get communications from their employer about their benefits are significantly more satisfied with their compensation, and are twice as loyal to that employer.
To help employees understand the value of their benefits package, many employers turn to employee benefit statements, also known as total compensation statements.
An effective employee benefit statement increases employee retention, promotes company culture, and increases job satisfaction.
It can even boost benefit participation levels which increases employer tax savings.
What are Employee BenefitStatements?
Concise, colorful, and impactful Employee Benefit Statements are a personal summary of an employee’s pay and benefit elections. It’s a comprehensive snapshot of the cost of benefits paid for an employee and provided by the company.
Employees have a newfound appreciation for the investment their employer has made in them when they finally grasp the range of pay and perks.
Research shows 95% of employees receiving statements have a better understanding of their total compensation.
“Total Reward Statements Show Employees You’re invested in them”;
HR Daily Advisor
Why send benefit statements?
Despite being such a high percentage of employee compensation, benefits are mysterious to many workers. Employee Benefit Statements lift that fog and spotlight the employer’s investment in the employee.
The statements also arm Human Resource managers as they wage daily battle to find and keep quality employees. HR has faced The Great Resignation, when employees were disappearing, to Quiet Quitting, where workers hang around but do the very minimum.
An effective benefit statement is simple, clear, dynamic, and personalized for each employee, and tells a compelling story for why an employee should stick with his employer.
Here are some noteworthy statistics supporting the value of employee benefit statements:
Employees who understand their benefits are:
- 95% of employees receiving statements have a better understanding of their total compensation.
- Employees receiving statements are more likely to stay with their employer. In fact, research shows that improving total rewards communication can lead to a 50% decrease in turnover risk.
Employees who understand their benefits are:
- 80% are more likely to be satisfied with their benefits
- 94% feel valued and appreciated
- 60% more likely to still be working for the same company in 12 months
The numbers are overwhelmingly in favor of providing Employee Benefit Statements. Let Navia-myBenefitStatements help you get the most out of your employee benefit investments and start your total compensation statement project today!
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