Today’s employees demand total transparency from their employer, while employers are discovering that greater workplace transparency can help increase employee engagement and increase employee retention.
Not surprisingly, employees who work for organizations that are more transparent have a greater trust in management, are more committed to the organization and are more connected to the employer brand.
This employee demand for transparency also extends to reward and compensation. In fact, the demand for transparency and equality is rapidly gaining in momentum, forcing organizations to examine their transparency around rewards, pay distribution and the gender pay gap.
Digital technology can be used as a tool to help increase transparency around reward in much the same way that it has improved connectivity and communication.
Using Technology for Transparency and Trust
For employers, investing in technology that makes employee rewards more transparent not only enables employees to see and understand their compensation clearly, but it also develops trust. Trust enhances the power of the employer’s brand, which goes a long way in both attracting talent and increasing retention.
In Salesforce’s State of IT report, it was shown that 71% of employees want their employer to provide them with the same level of technology as they use in their personal lives as consumers.
As a result, more and more employers are offering employee mobile apps and other interactive, customizable digital experiences so their workforce can stay informed, connected, and engaged.
The Compensation Gap
When it comes to transparency around rewards and compensation, employers need to make employees aware of their total reward. Without knowledge of their full compensation value, employees miss out a significant part of their compensation package, not to mention the money organizations waste on unused benefits. Worse, employees may leave to work somewhere else where they believe they are compensated better.
In our Compensation Gap survey, it was discovered that 8 out of 10 employees underestimate their total compensation package and that, on average, employees are unaware of up to 33% of what their employers spend on them.
If an employee is only aware or only able to see part of their offering, the true value of their rewards package is lost, leading to what we call a compensation gap.
So, using technology, how can you make reward more transparent?
What You See Is What You Get
Through Benify’s cloud-based employee benefits platform, employees can access a digital Total Reward Statement, which provides them with a transparent breakdown of their salary, pension, insurances, and other benefits paid to them that make up their total reward. For employers, this statement demonstrates transparency around reward through a clear visualization of employee compensation.
Trust and transparency are made even greater with employees able to access their Total Reward Statement through their benefits platform via desktop or via their smartphone or tablet using the Benify app anywhere, anytime.
Additionally, through Benify’s global benefits platform, HR professionals are given access to the Global Intelligence Dashboard, which enables administrators to see company-wide compensation and benefits data all in one place.
Data can, for example, help employers assess pay rises, benefits usage, and address any issues concerning gender pay gap, executive pay, and more.
The era of transparency is here. Is your organization prepared?
Read more about the importance of transparency as a way to engage your employees in our e-book, Employee Engagement: Unlocking Your Employees’ Potential.