Transparency and trust are vital to the relationship between employer and employee. In an interview for Forbes, Stephen M.R. Covey, author of the best-selling book, The Speed of Trust, says, “When trust goes down—in a relationship, on a team, in a company, in an industry, with a customer—speed decreases with it. Everything takes longer. Simultaneously, costs increase. Redundancy processes, with everyone checking up on everyone else, cost more.”
Karyn Twaronite, Partner and Global Diversity & Inclusiveness Officer at EY, wrote an article for Harvard Business Review where she shares findings from an EY survey. The results found that people believe a high level of trust in their company would have a significant influence on them being happier at work, staying at the company, doing higher-quality work, being more engaged and productive, and recommending the company to others. Yes, trust is that important.
A Forbes article refers to one study where employees say that company transparency is the number-one factor in determining their workplace happiness. The article shares, “Transparency fosters trust, and trust is important for the health of every relationship under the sun.”
Transparency Fosters Trust
Why there are many ways companies can increase trust and transparency, the least by focusing on workplace culture, making employees aware of their total compensation package and their employer’s investment in them is one such way.
Reward communication is essential for creating transparency. A Total Reward Statement (TRS) is a powerful tool that provides employees with an illustrated breakdown of their total compensation package, including benefits, pensions and all the other elements that make up their total reward. Our findings show that eight out of ten employees underestimate their total compensation package. In fact, when questioned, many employees ask, “What is a reward package?”. Increase transparency and trust by increasing awareness.
Forming the basis of our 2018 Employee Happiness Index, Benify surveyed 20,000 employees and HR leaders covering a range of topics, including benefits, personal finances, and employee engagement. The results reveal that, on average, employees who are most satisfied with their benefits offering give themselves an engagement rating of 9.1 out of 10 – up to a fifth more than those who are least satisfied.
A key component to benefits and compensation satisfaction is feeling valued by your employer and that your employer has invested in you. Feeling valued helps bring employees closer to their employer. As one FORA article shares, bean-bags and ping pong tables aren’t much consolation if people don’t feel valued.
Create Transparency Through Technology
As we explain in the blog, Using Technology to Meet Employee Demand for Transparency reward communication through digital technology can be used as a tool to increase transparency around reward in much the same way that technology has improved connectivity and communication.
More and more companies are offering employee mobile apps and other interactive, customisable digital experiences so their workforce can stay informed, connected, and engaged. For example, why not enable employees to access their Total Reward Statement (TRS) through a cloud-based employee portal? This way, employees can get an overview of all the components that make up their compensation and see the true value of their reward in real-time.
Want to learn more about Total Reward Statements? Download our whitepaper, Total Reward Statements: Showing Employees Your True Investment.