ROCKVILLE, MD - (November 28, 2006) – Today’s HR and benefits executives believe a disconnect exists between what companies spend on benefits and how employees perceive that investment, according to a recent survey conducted by Charlton Consulting Group, a benefits communications consultancy.
And, surprisingly, although a large majority of HR and benefits executives believe that personalized communications, such as total compensation statements (a comprehensive view for employees of all their benefits and the actual costs paid by their employer for those benefits), improve employees’ understanding of their benefits’ value, far fewer HR departments are actually using these types of communications tools.
The study represents responses from high-level HR and benefits executives from more than 128 different companies, across a number of industries and company sizes.
“We conducted this study to better understand HR and benefits executives’ perceptions of how well their employees appreciated their benefits packages,” said David Janus, a principal of Charlton Consulting Group. “A secondary goal was to examine what HR departments are doing in terms of communicating total cost of compensation. Helping employees see the full compensation picture is integral to protecting and growing a company’s human capital investment. Unfortunately, most employees don’t realize their paychecks are just part of the overall compensation equation.”
Only five percent of HR and benefits executives responding to the survey believe employees fully understand and appreciate the value of their overall total compensation package. In addition, more than one-third of respondents feel employees don’t understand the value of their total compensation at all.
Ninety-seven percent of respondents say personalized communications play a distinct role in helping employees better understand their benefits as well as the overall value of their total compensation. An overwhelming 96% of respondents feel total compensation statements, in particular, are important in communicating this value to employees. However, the majority of HR departments are not taking advantage of these tools, as more than half of respondents (55%) currently do not use total compensation statements as part of their employee communications.
“While HR and benefits executives know total compensation statements have a real impact, many find it challenging to get around to producing them due their being overloaded with so many other responsibilities,” Janus said. “Even though the survey indicates the use of total compensation statements is growing, there are still a large number of companies missing a golden opportunity to provide clear, simple and focused benefits communications that will bridge the knowledge gap and help educate employees on the overall value of their total compensation.”
Of the respondents who currently provide total compensation statements, almost 60% say their HR departments handle both the production and delivery of these types of communications in-house rather than outsourcing them. And, print communications is still the preferred delivery method according to 68% of this group.
As the recruitment and retention wars heat back up, the survey indicates a large number of HR departments will be better armed, as 93% of respondents say that personalized communications are valuable tools for recruiting and retaining employees.
“Employers that can deliver a 360-degree view of benefits for employees and can effectively communicate this value will be better able to retain high-performing employees and boost company morale,” Janus said. “HR and benefits executives can leverage the power of information to produce a more informed and loyal workforce.”
About Charlton Consulting Group
Charlton Consulting Group is a team of highly-focused benefits communications experts with more than 15 years in the business. We provide personalized benefits statements and total compensation communications programs to our clients. These programs have been proven to increase employee loyalty, retention and appreciation. To learn more about Charlton Consulting Group, visit