Total rewards communications: increasingly critical to employee retention

Key takeaways:

In order to engage and retain their workforce, organizations should prioritize more effective total rewards communications. Some recommendations for how to do so include:

• Design statements that reflect company values and mission.
• Personalize communications with narratives and acknowledgment of individual contributions.
• Collaborate with experts, rather than simply relying on software.
• Use charts and graphics to make the information more comprehensible and engaging.
• Gather employee feedback to continuously improve rewards communications.

A Gartner survey of more than 18,000 global employees late last year found that employees consistently cite compensation as their number one reason to accept or leave a job.

Add to this eye-opening statistic, two other recent trends that will greatly impact employment practices and human resources in the next year and beyond:

1. Increasing emphasis on pay transparency, requiring HR leaders to think more strategically not only about the structure of their total rewards programs but also on how best to communicate about total rewards.
2. As a younger workforce that has been shaped by the pandemic and its aftereffects becomes more prominent (Gen Z workers will comprise 30% of the American workforce, according to the US Department of Labor’s Bureau of Labor Statistics, by 2030), senior HR leaders increasingly need to rethink their approaches to rewards programs and communication.

So, what are some means of improving total rewards communications to help organizations recruit, retain and engage their employees in an increasingly competitive job market?

1. Design total rewards communications that project and promote company values

According to Deloitte’s 2024 Gen Z and Millennial Survey, released in May, nearly 9 in 10 Gen Z and millennial workers cite “purpose and values” as important to their overall job satisfaction. Custom-creating your own total rewards communications allows you to specify both brand identification markers and content that align with your company’s specific voice and values. 

2. Incorporate a narrative to personalize total rewards statements

A relatively easy but effective way to make total rewards communications more personal and meaningful is to add content that addresses employees personally, recaps important company milestones and achievements in the past year, and expresses the organization’s gratitude for individual efforts along the way. They can also be an opportunity for company leadership to address employees directly and help employees to feel acknowledged.

3. Collaborate with a total rewards communications expert to help you reach your goals

Employers should look for a partner that is knowledgeable about both compensation and benefits, as well as design and effective data presentation. Look for an expert who will discuss your organization’s goals and will work with you to design communications that are customized and impactful.

4. Create visual formats that tell a compelling story

Do your total rewards communications include appropriate images? Visual data elements like charts and graphs to help employees grasp KPIs and metrics? Corporate logos and other branding elements? If not, these visual elements all help to create a much more compelling, engaging statement. If you’re simply handing employees a block of text and numbers, without other content to help them interpret them, it’s hard to expect them to remain engaged.

5. Listen to employees and collect their feedback

Lastly, we always encourage the clients we work with to take the time to follow up with their employees, and ask them what they did and didn’t like about their total rewards communications. A simple employee survey, or even follow up emails or phone calls from supervisors for anecdotal information, can yield important insights that can be captured, reviewed and possibly incorporated into the next round of communications. (It also reinforces your organization’s commitment to its people by listening and valuing their opinions.)

RewardsFocus has been helping organizations of all sizes to design and deliver total rewards communications statements that improve employee satisfaction and engagement for over twenty years. To request samples of our work and explore how we can help you to more effectively recruit and retain your talent, reach out to us here.