A Study on Reward Communications: Methods for Improvement of Employee Understanding

Abstract

hy do most organizations do a poor job communicating their reward prograrns?According to Hay Group's global employee opinion research (the 2008: Hay Group Insight Employee Opinion Database), only 35 percent of employees understand how their organizations' reward programs work.While a .350batting average is outstanding for a baseball player, having only 35 percent of employees understand the manner in which they are paid seems unacceptable.Many compensation professionals are apt to tout the meaningful impact that reward programs can have on an organization's effectiveness -that is, when employees understand and are engaged by these programs.So why aren't more total rewards professionals "putting their 1nouth where their money is?"It should be a no-brainer to communicate the objectives of reward programs, the value of the invest1nent in

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