by Joe Blattner | May 12, 2011
According to the most recent MetLife Study of Employee Benefits Trends, 56% of employers surveyed made no modification to employee benefits materials last year. This means, even though there may have been changes in employee costs and benefits, those changes were not communicated to employees.
Not only that, but the study also says that only 23% of employees are satisfied with their benefits communication. So, of the employers who DO send out benefits communications, 77% must not be doing a very good job of it!
But, why should an employer give a hoot? Because employees who get communications from their employer about their benefits are twice as loyal to that employer. TWICE as loyal. That thought alone ought to save you some costs in employee retention and recruitment.
How often do you update your employee benefits communications? And, just as important, when was the last time you explained to your employees how much their total compensation is worth?
When fifty-five percent of employees report that they do not find their benefits materials clear or comprehensive, clearly an opportunity exists. This is where you can help your employees understand their compensation and further engage them, so they may see for themselves how much your company provides.
*Source: MetLife 9th Annual Study of Employee Benefits Trends
Part of your benefits communications should also be showing the COSTS associated with employee benefits. Do your employees know how much they’re benefits cost? Do they see the rise in costs every year in workers compensation, state insurance, health care? Do employees realize that the extra three days off they were given this year in vacation pay is actually costing the employer money by not having that employee at their job? This is also part of their total compensation.
The more communication you can provide to your employees, the better they will understand your company. In fact, you will also understand your company better if you were to add up all the costs that go into an employee’s total compensation. COMPackage total benefit statements provide over 60 benefit costs that most employers don’t even consider when adding up the costs of their employees. By adding up all of these costs, businesses are better equipped to make good decisions.
Would love to know your thoughts about this topic — how has employee benefits communication strengthened your relationship with your employer/employees?
by Joe Blattner | March 31, 2011
Today, the ideal total compensation package is as diverse as the current workforce itself. In fact, it has to be in order for companies to attract and retain the absolute best employees.
Your employees may vary greatly in age, location (urban, suburban, rural), gender, and marital status. They also most likely vary in how they work – from home or at the office? From a computer or by phone or some other type of a machine? By travelling on sales calls or going into the office every day? These are all things to take into consideration. Not to mention, employees working for the same companies have very different job descriptions and skill sets. Why give all employees the same exact benefit package, when employees are all so different?
If you are trying to provide a one-for-all solution, you are more than likely leaving some of your employees behind. By taking the demographics of your workforce into consideration, you can remove the guesswork of a one-handed solution and offer employees a worthwhile benefits package with options.
Regardless of whether or not your company is small or large or somewhere in between, tailoring benefits to the specific needs of your employees does wonders for morale. It’s also a smart move if you aren’t able to compensate monetarily as much as your competition. To bridge the salary gap, the savviest of employers know they must make up the difference by offering an attractive total compensation package and one that make sense for the employees in question.
Think about it. Would you offer an on-site daycare facility as a part of your benefits package if a large portion of your workforce is under the age of 25? If most of your employees commute by bus, would including a parking spot be relevant or even necessary? If you have telecommuters working for you maybe they don’t get to enjoy the “complimentary” coffee you keep in steady stream in the office – why not offer your virtual assistant a monthly $10 gift card to a local cafe?
Another example would be if employees are expected to use their own vehicles for company business, a prepaid gas card would help to defray fuel expenses. Do employees work from home using their own equipment and Internet service? If so, you might want to consider providing laptops with Internet access.
The cost of providing employees with potentially expensive perks such as insurance, holiday bonuses, company cars, laptops, cell phone service, tuition reimbursement, or stock options may naturally be a great concern, but it may not be as high as factoring in the cost of recruiting and retraining new hires. Offsetting salaries with a diverse selection of fringe benefits is one of the simplest ways of compensating employees smartly.
In essence, offering a diversified benefits package gives you the luxury of not only attracting talent, but also keeping the top talent in your field happy to be on board. Providing options and showing individualized attention can be priceless. And with the right software, it doesn’t have to be difficult, either. COMPackage offers customers a comprehensive list of over 60 benefit ideas as a natural part of their total compensation software subscription.
Getting the Word Out
After revamping benefits packages to meet the unique and changing needs of your employees, it is imperative to then ensure they are fully aware of their total compensation. It is often astounding for employees to find out how much their employer pays for their total compensation, but sometimes it’s also a shock to the employer, when they start adding it all up.
Many employees are completely unaware of the extent or contents of their work benefits. Are key employees being lured away and accepting other positions offering a higher base salary? They may not be so quick to make a move if they had all the facts about their benefits package.
Employees and potential recruits need to know the full costs associated with having them on staff. Knowing this gives them a better idea of their true compensation and it also allows for essential employee feedback. Encouraging employees to provide feedback regarding which types of compensation are most important to them gives you a definitive edge when it comes to yet another important aspect of any successful business – employee retention.
But how can you give them all of this information without spending a ridiculous amount of time compiling data or an exorbitant amount of money outsourcing the task to a third party?
The answer is using total compensation statement software for creating employee compensation reports and detailed benefits statements. Benefits statements will give your employees a clear and concise picture conveying exactly how much they are really being compensated for their services.
What interesting ways does your company provide benefits? We would love to hear your ideas for diversifying benefits in the comments below.
by Joe Blattner | May 24, 2010
Unfortunately, not every manager can be Michael Scott, CEO of Dunder Mifflin. However, managers can improve productivity and lower turnaround by taking a big cue from Michael Scott — MAKING WORK FUN. If your employees enjoy coming to work every day, they’ll work harder and complain less. The following tips are designed to help you change the culture at your workplace:
Be more like Michael Scott by:
- Relaxing
“Professional” does not have to mean “serious.” As an employer, you should strive to implement a personal conduct policy that allows your employees to work in a safe environment and enjoy themselves at the same time. This may mean that you take a hard stand on sexual and cruel jokes, but remain more lenient on harmless goofing off. Think through all your policies; don’t just create a rule to stop people from having fun or as a kneejerk reaction to a single incident.
- Planning outings during work
If possible, plan occasional company outings during work hours. Through these outings, your employees will grow closer and create memories they’ll cherish for years. Remember that your outing doesn’t have to be elaborate or expensive to be effective. While you could splurge and take your employees to a miniature golf course, bowling alley or baseball game, you could just as easily schedule a picnic, karaoke contest, talent show or game time in the middle of the workday.
- Surprising your employees
Treat your employees to something special without telling them. You could give them a few extra hours off work one Friday, put treats in the break room or schedule a casual dress day. Remember that even little surprises can mean a lot.
- Sponsoring theme days
While you may already allow your employees to dress up on Halloween, consider sponsoring other theme days. For example, for one day each year, you could allow jeans, shorts, hats, local sports team apparel or workout gear. The possibilities are endless, so get creative.
- Spreading Joy
When managers act like jerks, they can bring a whole company down; but when they start spreading joy, management can effect a cultural change that quickly spreads across a company. Stress to your management team the importance of smiling and complementing employees.
- Decorating
Sprucing up the workplace with a few plants and pictures can work wonders for employees’ mood. Consider posting artwork created by your employees or their children.
One final way to improve morale at your company [not sure if they do this at Dunder Mifflin or not 
] is by distributing total compensation statements. These statements can show your employees how much they’re valued by connecting a dollar amount to their benefits.
by Joe Blattner | April 26, 2010
Trying to think of creative perks to motivate your employees? Here’s a list of some of the most creative perks we’ve come across from the 2010 and 2009 Fortune “100 Best Companies to Work For” issues to help get you started. While your business may not be able to afford many of these perks, these examples can at least help you start thinking outside the box as you brainstorm ideas for perks.
- Qualcomm hosts a weekly farmers market that allows employees to stock up on healthy food.
- Umpqua Bank lends employees money for business attire purchases and sets up a payroll deduction so the employees can repay the bank at no interest.
- Stew Leonard’s Company invites employees with 20 years of service to dinner at the home of the company’s founder with a gourmet meal and fine wines.
- Paychex has an extensive employee wellness program that awards up to $300 to employees for doing activities like getting flu shots and dental check-ups, attending aerobics or yoga classes, running a 5K race and biking to work.
- Atlantic Health rewards its employees with a ton of vacation. All employees who have been with the company for at least 5 years get 28 days of paid vacation. New hires receive 18, 23 or 28 vacation days depending on their positions.
- The Marriott hotel chain helps employees and their immediate family move by assisting with buying or selling a home, closing and settlement, mortgages and moving.
- Two artists-in-residence work full-time at SAS and have produced a 3,000-piece art collection.
- Genetech offers $4 per rider per day for employees who offer carpool rides to their coworkers. Employees who commute by bus, train, van, ferry, or bike also receive $4 daily.
- Vanderbilt gives their employees 70% tuition subsidies to attend any college in the U.S.
- Scottrade considers opening an office for employees who want to relocate in an area where a branch doesn’t exist. The company has already done this for more than 20 employees.
Show your employees how much their perks are worth through a Total Compensation Statement.
Do you have a creative idea for giving your employee perks? Would love to hear it in the comments below!
