Providing employees with online total reward statements could help to improve staff recruitment and retention, according to a new survey.
Over two-thirds of HR and compensation and benefits professionals surveyed by Mercer Human Resource Consulting think individual, web-based statements incorporating pay and all benefits – such as pensions, healthcare, share plans and life insurance – would have a positive impact on staff attraction and retention.
Nick Throp, European Partner at Mercer, said: “Most people fail to look beyond their base pay and bonus levels. Benefits can cost companies as much as 50% of salary, yet employees typically underestimate their value by a long way.”
Almost four in ten survey respondents also think that online total reward statements could provide useful information for management. “Employers can see which benefits are most popular with various groups in the workforce. They may decide to change those with low take-up rates. Breaking down the value of each benefit can help companies calculate the true cost of recruiting more staff,” explained Throp.
Almost a third of companies think that online total reward statements would deliver cost savings – through reduced employee turnover, for example.
However, over half of the companies surveyed are concerned about the cost of implementing the statements while three in ten worry about data security.
“Data issues can be overcome, and moving to online reward statements may be the catalyst for sorting out existing problems,” argued Throp. “The long-term gains from staff appreciating their benefits can often outweigh the costs involved,” he added.
