Everything you need to know about the FLSA changes

Going from BAD to Good: Overcoming Benefits Appreciation DeficitYour benefits may be top-notch, but they won’t help you recruit and retain top talent if employees don’t appreciate them. In a survey by the Society for Human Resource Management (SHRM), less than 9% of HR professionals said their employees were “very knowledgeable” about their employer-sponsored benefits.1 But employees aren’t necessarily to blame, as only 22% of HR professionals said they “strongly agree” that their company was very effective in informing employees about their benefits.1 With competition for top talent on the rise, employers need to reevaluate the way they deliver benefits information to employees.

Get the word out. Now, do it again!

Communication is key in helping employees understand and appreciate the value of their benefits. And increasing employees’ knowledge of their benefits is an effective way to enhance the overall employee experience. According to a survey by SHRM, 63% of employees rated their benefits package as “very important” to their overall job satisfaction.2 But it’s not just what you communicate, it’s also how and when.

HOW:

Benefits matter to millennials

Despite the importance, over half of millennials don’t have a complete understanding of all of the benefits options that their employers provide.

87 percent More than 87% say benefits play a significant role in their choice of employer.
86 percent
And 86% say that benefits play a significant role in their decision to stay with their employer.
GuideSpark, Employees Speak Up About Benefits Communications, 2014.
   
                           

WHEN

Add it up for employees

When employees think of how they're rewarded at work, they often think pay, health care, and retirement benefits. Other compensation factors like paid time off, training, career development, and work-life balance often fail to make that mental list. If you want to expand that list, you'll need to lay it out for employees. Total compensation statements are an effective way to do accomplish this.

With a total compensation statement, you can show employees how much their efforts matter to your company and, in turn, foster goodwill, engagement, and improved productivity. Your recruiters can also use prospective compensation statements to show candidates the full scope of company benefits and compensation. But beware! A dry list of numbers is unlikely to yield the highest readership and appreciation. Did you know that the brain processes visuals 60,000 times faster than text?5 Therefore, use as many charts, graphs, and images as possible to engage employees with this valuable information.

The 2016 Compensation Best Practices Report by PayScale found that employee retention is one of the biggest concerns of employers today, with 57% of those surveyed worried about losing their best employees to competitors, and 55% concerned about the difficulty of finding skilled labor.6 If you want to recruit better and retain your top talent, a total compensation statement may help you show – not tell – valued employees how your organization works for them.

ADP® can help employees see the big picture

You and your employees don’t have to suffer with BAD any longer. ADP invests in the talent and success of small- and medium-sized businesses across the country with industry-leading benefits communication, including personalized video (http://bit.ly/27EbzQf), mobile messaging, and total compensation statements.

1 Society for Human Resource Management, 2014 Strategic Benefits Survey.
2 Society for Human Resource Management, Employee Job Satisfaction and Engagement.
3 2016 Consumer Health Mindset™ Study. Aon Hewitt, National Business Group on Health, and The Futures Company, 2016.
4 GuideSpark, Employees Speak Up About Benefits Communications, 2014.
5 Harley, Trevor, The Psychology of Language: From Data to Theory, 2001.
6 PayScale, 2016 Compensation Best Practices Report.

Keywords:
HR Management
,
Human Capital Management
,
Talent Management
Roles:
Research for Human Resources Professionals