Many have recently reconsidered their work and their relationship with their employer. Employees have been pondering their professional futures as they try to stabilize their situations in an unstable time. On the other side, organizations and industries have been experiencing spiked turnover rates throughout the pandemic, with many people already anticipating switching jobs.
Around 55% of Americans have expressed that they’re likely to look for work within the next year. Many are actively looking for better opportunities even right now, which should put dread in the minds of human resource departments everywhere.
What is the Great Resignation?
The Great Resignation was actually coined in 2019 to predict voluntary mass departures from workforces. Thanks to the COVID-19 pandemic, it’s being realized much quicker than expected, with more than 11 million people leaving their jobs between April and June 2021.
However, there are ways to offset this issue, convincing employees that your organization is a quality place to work. Employees love benefits and cherish security. Communication, already an often neglected part of any large company, is even more vital.
Implementing total reward statements can help your company stave off the Great Resignation as you provide the kind of perks and tools that look after their wellness, both financially and emotionally. How can these important statements transform the mood around your workplace to keep employees happy?
Make Employees Feel Valuable
Employees always want to feel like they matter. They want to feel like all the sacrifices they make professionally and personally to do the best possible job for your organization are being duly recognized. The moment they feel like they are just cogs or are overworked without any benefit will lead to increased stress and a desire to look elsewhere for employment opportunities.
A total reward statement communicates all potential employee benefits that workers will find useful. Such a statement is important for your organization because it highlights the value you’re willing to provide employees in exchange for their dedication and hard work.
What Should Be Included?
A total reward statement should include personalized statements that clearly list everything your business can afford to every employee. Additionally, it should outline your organization’s financial commitments that go beyond any standard pay and regular benefits. The statement should provide value add to the work experience for your employees.
Total reward statements have existed for decades, going under different names like Employee Benefit Statements and Total Compensation Statements, among others. Going forward, the use of robust total rewards statements should show why your company is more appealing to work for than a company that might offer more money but doesn’t have this sort of statement.
Flexibility Should Be a Strong Vantage Point
Another advantage that total reward statements give employers is the improved perception that they are sensitive and flexible to employee needs, becoming a more attractive organization to work for.
Employees have increasingly shown a desire for more work flexibility, with studies showing that around 70% of workers desired more flexible remote work possibilities to continue their jobs. Meanwhile, 65% of workers sought more in-person time with their respective teams.
Employees want to be able to choose and seek employment opportunities elsewhere if they don’t feel they have the freedom to do so. Offering employees a total reward statement to explain what they’re entitled to as well as giving them greater opportunities to work from home, will engage employees positively, allowing them to feel more valued and understood within an organization.
Employees will also have a more improved understanding of their benefits. Showing the flexibility to reach out to employees directly will build trust and lead to more engaging relationships between them and their employers.
Place Employee Benefits at the Forefront
By using a total reward statement, you’re using a proven method for retaining employees. Even though more employees are working remotely, you can still assure them they are not missing out on the bonuses enjoyed by everyone else. Valuable benefits can make compensation seem more fair.
Benefits can also make up to around 40% of an employee’s total compensation package, showing just how valuable they are to workers. Employees want more than standard paychecks to keep them around. Benefits aren’t just add-ons but legitimate boosters that make for more motivated employees and lead to increased productivity over time. Value these as much as you value pay stubs, and employees will know that you’re looking out for them beyond the basics.
Issuing total reward statements indicates that you’re willing to listen to your employees and address their direct concerns without going to a one-size-fits-all approach that can alienate some members of your workforce. They also allow you to create a healthier work culture where employees openly share their concerns and suggestions to improve the work environment.
By communicating your benefits to an employee and including things that are helpful to their financial management and mental well-being, you’re creating a positive attitude shift within the organization. You’re showing a willingness to help people in meaningful ways that will benefit them in life, not just in professional circles.
You need to develop a holistic approach with your benefits and compensation to reflect the above attitude shift. Everything that happens in the workplace is reflective of the mental well-being of every member of an organization. Workdays take a toll on everyone, given the various demands that come with daily tasks. Total rewards statements reflect a more holistic and wholesome approach to employee wellness, allowing HR departments and management to take more consultative approaches with employees to gauge their feelings about working in their organizations.
Such openness can positively impact workplace morale and shows a genuine effort to keep employees happy beyond financial reasons. Depending on what you include in your total rewards statement, you can reach out to employees more honestly and engagingly while showing how comprehensive your benefits are. Not only can they help you stave off the great resignation, but they can also attract new hires and ensure your workforce remains steady.