Unitech Industries offers comparatively low compensation but many unique benefits to its employees. Which approach is the best way to communicate this information?
A. Conduct compensation and benefits training sessions with employees
B. Schedule an annual compensation and benefits fair for employees
C. Send monthly memos highlighting the compensation and benefits plans
D. Create a total rewards dashboard summarizing the value of all benefits offered to employees
E. Publish reports describing competitor compensation and benefits plans
The correct answer and explanation is:
The correct answer is D. Create a total rewards dashboard summarizing the value of all benefits offered to employees.
Explanation:
When a company like Unitech Industries offers relatively low direct compensation but compensates with unique benefits, the key is to communicate the total value employees receive, not just the salary. This helps employees understand the full picture of their rewards package, which can increase job satisfaction and reduce turnover.
Why option D is best:
- Comprehensive overview: A total rewards dashboard visually and clearly summarizes all forms of compensation, including salary, bonuses, health benefits, retirement plans, work-life balance perks, and other unique benefits. This helps employees grasp the full value beyond just paychecks.
- Transparency: Employees often undervalue benefits because they are less tangible than direct pay. A dashboard makes these benefits more visible and easier to appreciate.
- Ongoing access: Unlike one-time events or memos, a dashboard is usually accessible at any time, allowing employees to review their total compensation whenever they want.
- Engagement and motivation: Seeing the total value can motivate employees and help them feel more valued, even if their salaries are lower compared to competitors.
Why other options are less effective:
- A (Training sessions): While informative, training may be infrequent or not fully absorbed, and employees may forget details over time.
- B (Annual fair): An event once a year may not provide ongoing reinforcement and may be missed by some employees.
- C (Monthly memos): Memos can be ignored or overlooked, and monthly communications can become overwhelming.
- E (Publishing competitor reports): Sharing competitor compensation details may cause dissatisfaction or comparison and does not effectively highlight your own benefits’ value.
In summary, a total rewards dashboard provides a clear, accessible, and continuous way to communicate the real value employees receive, which is critical for a company offering lower pay but unique benefits. This approach fosters better understanding, appreciation, and engagement with the company’s compensation strategy.