5 Reasons Doing Total Reward Statements during a Recession Makes Sense
Company cutbacks are forcing companies to re-evaluate some of their best practices. However, experts will tell you that the companies that will lead us out of the recession are the ones who make smart decisions during the recession. Smart companies continue to provide their employees with effective communications about their pay and benefits, and that includes providing Total Reward Statements. However, they are evaluating less expensive vendors or renegotiating with their current provider to find a lower priced option. They continue to provide Total Reward Statements because they know that:
- Changing jobs may not be an option for your employees right now, but it will be an option for the best and brightest soon. Make sure you don’t lose good employees to your competitors because they didn’t understand the total value of their compensation.
- Pay freezes often don’t mean that the total value of your employees’ total compensation was frozen. While the water cooler talk is never positive when you freeze pay, you can help your employees to see that your costs are increasing and so has their total compensation package.
- Being successful and lean in a recession means getting the most out of each employee. You can motivate the appropriate behaviors and drive productivity by reminding employees about the value of their compensation and the compensation for achieving specific goals.
- Employees still need to make smart financial planning decisions and the more they understand their pay, health benefits, retirement benefits, income protection benefits and short- and long-term incentive programs, the better positioned they are to make smart financial decisions.
- Your employees can’t appreciate the value of their total compensation if they don’t know it.