Communicating Total Rewards: 3 Keys to Building Engagement & Retention
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Even with all the hard work done by compensation and HR leaders, most employees don't understand the value of their employment package. And many managers don't know where to find the information necessary to explain the total value of employment. The result: unnecessary turnover, frustration, costs and wasted time. Please join us for an exclusive webinar with experienced compensation consultant Zachary Weinberger. Zachary will share inside strategies and best practices on how leading organizations are successfully communicating total rewards programs to dramatically improve engagement and retention. In this webinar you will learn how to make your existing compensation program a powerful retention tool including: · How to balance theory and practice · How to apply a transparent model to communicate total employment value · How to analyze your audience and use technology to communicate total rewards · How to leverage multiple communication channels to maximize engagement
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Communicating Total Rewards: 3 Keys to Building Engagement & Retention
- 1. TalentTakeaways webinar & podcast series COMMUNICATING TOTAL REWARDS 3 Keys to Building Engagement & Retention
- 2. AGENDAThe Series TalentTakeaways webinar & podcast series Talent Takeaways Series
- 3. AGENDAAGENDAThe Sponsor Talent Takeaways Series Talent Management Made for Managers Compensation Planning Total Rewards Stay Interviews
- 4. Communicating Total Rewards 3 Keys to Building Engagement and Retention Zachary Weinberger Managing Consultant Remuneration Resources, LLC www.RemunerationResources.com
- 5. What We’ll Cover Today The true impact of rewards communication 1. Balancing theory and practice 2. Applying a transparent model to communicate total employment value 3. Understanding your audience and using technology to communicate total rewards RemunerationResources,LLC 5
- 6. How good are we at communicating rewards? Towers Watson’s 2014 Global Workforce and Global Talent Management and Rewards study shows only half (52%) of employees feel their company does a good job of explaining pay programs 29% of respondents in a 2007 WorldatWork survey said that pay communication is the component of their company’s rewards program most in need of improvement 53% of respondents in Payscale’s 2014 compensation survey felt their organization does not offer managers training to teach them how to talk to employees about compensation Incentive plans are intended to drive behavior yet only 31% of HR managers believe employees understand how plans operate RemunerationResources,LLC 6
- 7. The Solution Make it simple Explain why; not only what, when and how • When they understand the rational, people assimilate information better Share more information rather than less • Nature abhors a vacuum – the less information employees have the more they invent (rumor, gossip, etc.) • The more information they have (up to a point) the better they understand and accept the information Use multiple approaches • Not all audiences need the same information • Not all people absorb information the same way RemunerationResources,LLC 7
- 8. OBJECTIVE OF COMMUNICATIONS PROGRAMS Tactical: • AWARENESS: Improve awareness of the different elements of the total compensation program • UNDERSTANDING: Provide clarity around the total compensation program • APPRECIATION: Communicate the collective mix and relationship of various pay elements Strategic: • ENGAGEMENT: Employees are loyal and productive • RETENTION: Employees stay with the company RemunerationResources,LLC 8
- 9. In Short The goal of a rewards program communication plan is: For your employees (present and future) to see their rewards package as the tremendous offering that it truly is, they need to understand it. This starts with grasping your company’s compensation philosophy, your base pay system, your bonus programs, and the role your culture plays in promoting and supporting career growth. If your rewards communications connect the dots between their benefits, pay, performance, and career development employees will be increasingly engaged and loyal. RemunerationResources,LLC 9
- 10. 1. Theory and Practice Theory: a contemplative and rational type of abstract or generalizing thinking, or the results of such thinking. A theory provides an explanatory framework for some observation. • The rationale… • Why we do it … • How to think about it … Practice: the actual application or use of an idea, belief, or method as opposed to theories about such application or use • How to do it …. • What we do … • The processes we use … • How to pick a starting salary • How to process a merit increase • How the bonus plan works RemunerationResources,LLC 10
- 11. What are we communicating? Rewards philosophy Rewards program objectives Rewards process • Mechanics • Base pay plans • Plan changes • Incentive plans • Benefit plans • Benefits plan changes • Total rewards statements • Mobility programs • Etc. RemunerationResources,LLC 11
- 12. How Much Theory 10% to 80% theory • 10% - general , broad based employee communication • 80% - HR compensation training Philosophy underlies theory Theory is why the process is what it is and the rational for decision making • Can be strategic or tactical Practice is the process or processes we follow • Can be tactical or operational RemunerationResources,LLC 12
- 13. 2 Transparency Transparency: as used in science, engineering, business, the humanities and in other social contexts, implies openness, communication, and accountability. Transparency is operating in such a way that it is easy for others to see what actions are performed. It has been defined simply as "the perceived quality of intentionally shared information from a sender". (1) The level of transparency depends on the compensation philosophy and culture of the organization • Trend is to greater transparency • With transparency employees get accurate information rather than false rumors • Greater transparency builds trust in the organization which leads to greater engagement (1)Schnackenberg, Andrew K.; Tomlinson, Edward C. (March 2014). "Organizational transparency: a new perspective on managing trust in organization-stakeholder relationships". Journal of Management RemunerationResources,LLC 13
- 14. How Transparent are we? 39% - No salary range information 22% - Limited salary range info (employee’s range) 8% - Limited information (employee range and next range up) 18% - Some other approach 13% - Transparent Pearl Meyer – Published in WorkSpan 2/13 RemunerationResources,LLC 14
- 15. How Transparent Should We Be? As transparent as possible To increase transparency, we must actively include greater disclosure, clarity, and accuracy in our communications Do not loose simplicity and clarity - too much information does not increase transparency RemunerationResources,LLC 15
- 16. 3 Who is the Audience? Senior Leadership – need to understand and endorse rewards plans and programs Executives – need to understand and approve rewards plans and communication programs Human Resources - need additional training and information to help answer manager questions Managers – need additional training and information to help answer employee questions, in addition to understanding the information as it applies to them Employees – need to understand rewards plans and programs Employee Families – need to understand impact on them Other… RemunerationResources,LLC 16
- 17. Communication Channels Face to face meetings Print • Presentation Decks • Brochures • Post cards Direct mail Email Portals – will it also work on a smartphone? Social media Online modeling Other… RemunerationResources,LLC 17
- 18. Making the Message Stick Classical forms of communicating include: • Ethos – credibility of message (messenger) • Pathos – emotional appeal • Logos – rationale Identify key messages • While balancing theory with practice: be focused • Be clear and simple Be Relevant • explain why the message is important to the audience - answer “what’s in it for me?” Start at hire and continue throughout the employee life cycle • Annually • Quarterly • As needed RemunerationResources,LLC 18
- 19. Measure Success Is content accurate and understandable? Is content being delivered? • Are communications sessions taking place? • Are employees receiving print and electronic communications? Do HR and line managers feel they can answer employee questions? – survey them Was the merit process completed timely and with few complaints? Did employees sign up in the proportion desired? Was the reaction as expected? RemunerationResources,LLC 19
- 20. Overall Summary Philosophy guides Strategy Strategy guides Communication (tactics) Simplify the message (simple design helps) Provide as much information as organizational culture will allow Prepare HR and Managers more ( they need to answer employee questions); Gear communications to various audiences • Differentiate by audience • Be inclusive Communicate early and often via multiple channels and in balance with other HR and company communications RemunerationResources,LLC 20
- 21. Thanks! Zachary Weinberger Managing Consultant Remuneration Resources, LLC zweinberger@remunerationresources.com www.RemunerationResources.com +1 (203) 561-7315 RemunerationResources,LLC 21
- 22. AGENDAAGENDA Downloads Recorded Webinars Product Tour & Demo Resources & Support Talent Takeaways Series
- 23. Resources Talent Takeaways Series Connect, Communicate & Engage with Your Employees REWARDview™ Total Rewards Software
Hinweis der Redaktion
- Thanks and welcome Compensation and rewards are one part of engagement and retention. Others include… internal forces like work environment, development opportunity, organizational brand (prestige) - external forces like economic environment, pay levels at labor market competitors Employees who understand the company’s overall compensation strategy, philosophy, pay-setting processes and the rationale behind each pay and benefits component are more likely to feel valued as employees and comfortable with their total compensation packages. Communication should start at the time an employee is hired and continue throughout his/her tenure with the organization. Ultimately, an effective communications strategy can help protect the significant investment companies make in pay and benefits programs.
- Normally I like to have a conversation with plenty of give and take. A webinar like this with lots of participants makes that hard. We will have a Q&A at the end of the presentation. Still, please submit your questions as we go along for two reasons. One, I will try to answer some of them as I go and two, you may not remember your questions if you just save them. I want you to take at least one useful thing from the time you are so generously giving me so I will tell you now there are three things I want drive home 1 – employees and managers are better for understanding a bit of theory – what are the basic drivers of compensation thinking and decision making 2 – more transparency is better – to the extent your culture will support it, share information. The more people know the less they invent 3 – one size does not fit all – almost every message has multiple audiences and the message needs to be delivered in the most appropriate manner Most of you probably know this already and after this presentation you can tell your friends and coworkers, bosses and teams, that an expert with 30 years experience and 3 graduate degrees validated that what you know is right.
- Not very good! Opportunity – better communications Communication greatly impacts perceptions of competitiveness and fairness
- Make it simple – not keep it simple Why = theory More = transparent Multiple approaches = audiences and channels
- Strategic, Tactical, Operational
- it’s really all about managing employee expectations: if they believe they’re being compensated fairly and can look forward to future rewards, they’re likely to remain loyal employees; if they perceive their compensation as “less than,” they’ll seek greener pastures. And the lynchpin to managing expectations with respect to compensation is effective communications.
- What Often we focus on communicating what has changed, there is a new bonus formula or a new benefits plan. Or how to process something, click here, enter number there click submit for a merit increase If managers and employees understand the theory behind how decisions are made and the philosophy that supports those decisions they will do their jobs better and for understanding why they are doing something. This leads to better engagement. Urgent and Important Theory helps explain (provide rationale) for practice/process New programs v. ongoing programs – no difference; all need ongoing reinforcement
- Through all these we want to communicate that the company or organization provides fair and competitive programs and cares about its employees
- Reasonably concerned about info overload and have urgent need to communicate what’s changing or happening or about how to process a pay increase. What theory adds is the why… We never want to communicate 100% theory. Practice ties the theory to experience and gives it context just as theory give practice context. They compliment each other. Practice is often a combination of tactical and operational. For example: during the merit process determining the increase amount for a given employee can be tactical (how do I reward and engage this employee) and it can be operational (how do I enter the increase into the record keeping system so the employee gets paid) E.g. when managers understand the concept of labor markets and the process of survey participation and benchmarking they better understand and apply pay setting programs. They also better accept the pay structure. Story: Over the course of several years we moved to a more automated merit process. In year one we communicated about the new platform and how to log in and how to enter increases etc. We had lots of questions not only about how to use the system mechanically but about how to allocate increases etc. In year two we added a little theory, the concept of placement in the range based on experience and performance, and not only did we have fewer questions about the mechanics we had many fewer questions about how to distribute increases. Story: In manager training we talked about the concept of a labor market, comparing it to a housing market. We talked about salary surveys and benchmarking as well as the notion of best available data. There was also some material on the idea that all business decision making is done with best available data. Subsequently we had much more positive discussions with trained managers about market data, pay ranges and determining pay levels for new hires.
- What Shared information supports engagement Transparency supports engagement There may be some influence of local culture and practice (e.g. in Asia historically senior managers make all pay decisions) Becoming more transparent here is more about getting managers to change their practice and share the decision making than local cultural practices. Relevance Context Once a year is not enough Delivering bad news Early Clearly What/who is impacted and how Message should come from the top – show empathy
- When, Who, How Give key Stakeholders a feeling of involvement Be consistent – build shared understanding Other – shareholders, customers, competitors (may be indirect audiences)
- Face to face will often be informal – an employee asking a manager or HR representative. HR and managers need to be prepared to respond effectively to employees. This may be as simple as “call the HR call center” or as difficult as saying “I made this decision and this is why…” Technology can support communication Leverage multiple communication channels to maximize engagement Is the HR call center ready to answer employee questions? Read, heard, discussed gamification
- There may be some debate about which is most important… One on one – body language, eye contact, listen when appropriate, etc.
- Quantitative measures of success of a communications plan are hard Most will be qualitative 4 Potential Pitfalls: Not anticipating defensiveness Undervaluing direct interaction Declaring victory too soon Losing sight of the big picture
- Philosophy and strategy are the basis for action – what’s communicated