For many HR leaders, there is a persistent disconnect between the significant investment a company makes in employee benefits and the level of awareness employees actually have about that package. This gap is more than a communication problem. It represents a strategic risk. When employees do not understand the full value of what they receive, it can affect their wellbeing, their performance, and ultimately your ability to retain them.

The scale of this challenge is clearer when we look at current data. Research from Aon, published in the article “Technology, Data and AI Are Transforming How Employees Receive Benefits,” found that only 25% of employees at multinational companies say they truly understand their benefits. This means a major portion of total compensation remains invisible to most of the workforce.

A practical first step in closing this awareness gap is a well-designed Total Reward Statement. These statements give employees a clear, itemized view of the value the organization invests in them. For many smaller employers, a Total Reward Statement can be one of the most effective and affordable communication tools available.

A strong Total Reward Statement can help in several key areas:

• Recruitment and Retention: A Total Reward Statement gives recruiters a straightforward way to demonstrate the full value of a job offer. For existing employees, it reinforces the complete value of their package, which is especially important during years when salary increases may not be as strong as expected.
• Understanding and Engagement: Delivering personalized reward statements through email or text allows employees to absorb the information outside the noise of open enrollment. It also provides a reminder of the benefits they often forget about during the year.

A Total Reward Statement creates a strong foundation. The next step is building on it with more strategic and timely communication. Larger organizations often use data and technology to deliver targeted benefit messages at moments when employees are most likely to need them. Aon refers to this approach as “Intelligent Campaigns,” which use data to identify specific employee groups and send information tailored to their circumstances.

Smaller organizations can apply the same idea without advanced tools. Timing communication around major lifecycle events such as onboarding, family changes, promotions, or work anniversaries can have a similar effect. The objective is not more communication. It is better communication delivered when it matters.

When employees clearly see the value of their benefits, engagement improves and retention strengthens. For HR leaders, the message is clear. Your benefits investment only pays off when employees understand it. By combining a Total Reward Statement with well-timed and relevant communication, you can close the awareness gap and position your benefits strategy as a meaningful driver of retention.

Source: Aon.com