PEOPLE FOCUS - CIPD

MOTIVATION
PEOPLE FOCUS
In challenging economic conditions - how can
you keep your employees motivated?
As organisations operate in more difficult business conditions and in an
environment of pay restraints, it may be an opportune time to communicate the
value of existing benefits to employees.
by Kevin Kinsella
• Are your employees aware of
the value of their total
compensation package?
• Are your employees aware of
escalating retirement costs?
• Do your employees focus on base
salary alone?
• Do you have retention and/or
recruitment issues?
If any of the above issues concern you,
then the introduction of total
compensation statements may help
address these issues:
• Enhance evaluation: by increasing
employee awareness and appreciation
of their total compensation package
• Recruitment & retention: by
quantifying the cost of all
compensation and benefit items
• Employee communication: by
providing a personalised summary of
each employee's total remuneration
Background
Effective communication can help to
ensure that employees understand
and value their total remuneration
thereby making the most of your
reward programme.
Communication is more than getting the
word out. It is the art and science of
engaging employees. Often, that means
creating personalised communication that
really grabs employees’ attention,
promotes understanding and motivates
them to take action.
Effectively communicating total rewards
leads to improved motivation and
performance by raising the perceived
value of the reward package.
Total Compensation Statements are one
many communication tools offered by
organisations to raise the level of
awareness and knowledge among
employees of their reward package.
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Total Compensation Statements enable
organisations to consolidate a summary of
each employee’s remuneration providing
employees with a comprehensive report of
their pay and benefit details while also
reducing the burden on HR staff.
The use of Total Compensation
Statements can:
• define and quantify employees’ total
remuneration and the investment
made by the company,
• increase the visibility and reinforce the
value of programmes and benefits,
• eliminate the need for numerous
employee statements (from various
benefit sources) by using a ‘one-stopshop’
approach,
• aid in retention of employees, and
• relieve the burden on HR staff to
consolidate and distribute data, and
deal with multiple employee queries.
What’s involved in the
production of a Total
Compensation Statement?
• Project management - the delivery of
statements will very much depend on
the strength of the project
management. By developing and
maintaining a robust project delivery
plan, liaising with all data providers and
printers it will ensure that the statement
is delivered on time and within budget.
• Draft and design – It is critical that
the statement layout meets your
reward programme rules and
branding specifications and is tailored
to deliver maximum employee impact.
Statements can range from as small
as a four page summarised document
to a comprehensive more detailed
document which can be fully
pension compliant.
• Creation, testing and production
of statements – One way of doing
this is to consolidate your data files so
that a unique data record is created
for each employee, and merged to the
appropriate statement text. Population
can be segmented to receive different
versions of the statement depending
on their benefit eligibility or location
or other relevant differentiator ■
For further
information Kevin
Kinsella may be
contacted by email,
Kevin.kinsella@
mercer.com or at (01)
411 8180.
PLATINUM SPONSOR OF CIPD