Eliminating Rising Employee Concerns & Stress with the Help of Total Rewards Statements

Key Takeaways:

• Total rewards statements (TRS) increase transparency and trust by clearly outlining the full scope of employee compensation.
• By focusing on various aspects of well-being, a TRS helps address specific employee concerns such as health, mental wellness, and financial security.
• Total rewards statements reduce financial anxiety by showing employees how compensation contributes to their long-term financial goals.

As we move into a new year, one thing is clear: Employees are increasingly concerned about their well-being. According to a recent report by SHRM, concerns about overall employee welfare have been increasing, with employees now viewing physical, mental, and financial health as integral components of their work satisfaction. In fact, a growing number of employees now consider their well-being just as important as their salary.

With employees weighing all factors of their employment, employers are tasked with effectively communicating the full scope of their benefits offered to current and prospective team members. Total rewards statements provide a comprehensive tool to highlight the variety of benefits companies offer that can alleviate these concerns.

Enhancing Transparency and Trust

A significant issue for many employees is a lack of understanding of the full extent of their benefits and compensation. Many individuals do not fully grasp the non-salary perks that contribute to their overall financial and personal well-being. This lack of awareness can lead to undervaluation or misconceptions regarding the employer’s contributions.

A total rewards statement serves as an effective tool for providing transparency by detailing the entire compensation package. Employees can clearly see how much they are receiving in salary, retirement contributions, healthcare, wellness programs, and other benefits. By making this information easy to understand, employers can foster a stronger sense of trust, showing employees that they value their contributions and well-being.

Highlighting Support for Well-Being

Employee well-being has become a top priority in today’s workforce, and it’s no longer just about financial compensation. Workers are increasingly aware of and influenced by their mental, emotional, and physical health.

A well-structured TRS highlights the full spectrum of support an employer provides to promote overall well-being, including:

• Physical Health: Health insurance options (medical, dental, vision), wellness programs, and fitness subsidies.
• Mental Health: Access to counseling services, employee assistance programs (EAPs), and mindfulness apps.
• Financial Health: Retirement plans with employer matching, stock options, tuition assistance, and access to financial planning resources.
• Work-Life Balance: Paid time off (PTO), flexible work arrangements, and parental leave policies.

By clearly communicating these benefits in one place, employers can reassure employees that they are invested in all aspects of their lives, not just their paychecks.

Reducing Financial Anxiety 

Financial stress is one of the most common concerns employees face. A lack of financial security—whether it’s worrying about healthcare costs, retirement savings, or unexpected expenses—can weigh heavily on employees. According to SHRM, concerns about financial stress are on the rise, with many employees feeling uncertain about their long-term financial stability.

A total rewards statement can go a long way in diminishing this anxiety. By clearly outlining the financial benefits provided by the employer, such as retirement contributions, health insurance subsidies, and tuition reimbursements, a TRS shows employees how their employer is helping them secure their financial future. In this way, a TRS provides a clearer picture of both immediate and long-term financial stability, reducing uncertainty and stress.

Boosting Employee Satisfaction and Retention

Employees who understand and appreciate the full extent of their compensation package are more likely to feel satisfied with their jobs and committed to their employers. By proactively addressing concerns related to well-being, including financial stability, a TRS can increase engagement and loyalty.

As highlighted by the SHRM study, employees who feel their employers support their overall well-being—financially and otherwise—are less likely to experience high levels of stress, leading to greater job satisfaction and a stronger commitment to the organization. When employees understand the total value of their rewards package, they are more confident in their decision to remain with their current employer.

RewardsFocus is committed to helping you and your organization create and implement effective total rewards statements for your team in the new year. To learn more about how transparent and comprehensive total rewards communications can ease employee concerns and improve retention, get in touch with us today.