Effective communication plays a very important role in determining the compensation package, yet almost a third of employers do not communicate with employees about their benefits, says a survey by global professional services company Towers Watson.
According to the survey, there exists a positive correlation between the perceived value of benefits and effective communication in the organisations surveyed.
Despite listing the improvement of their employees' perceived value of benefits as one of their top objectives, 31 per cent of employers still do not communicate about benefits to their workforce.
Though this number (31 per cent) is high, it is an improvement over 55 per cent in 2009.
"Communication is often overlooked when it comes to rolling out a comprehensive benefit strategy, but as we found, it is often an integral way to improve the ROI (Return on investment) that employers strive for," Towers Watson Director ¿ Benefits Optimisation, Asia Pacific Matthew Jackson said.
The survey, which was conducted between February and March 2013 among 1,066 employers, said that among employers who felt they communicate effectively on benefits, 91 per cent also indicated that they believe their benefits are sufficiently or highly valued by employees.
This number drops to 67 per cent for organisations that do not communicate on benefits effectively, the report added.
The survey further noted that 22 per cent of companies still communicate using paper-based tools. Despite this, employers are beginning to embrace newer technologies while a quarter makes use of online benefit portals.
"Today, a significant slice of employees' lives are lived online, and this is how they communicate too. It's the first place they go to for information," Jackson said.
An effective communication strategy will be multi-dimensional. While paper-based communications such as mailers and posters have their place, they should be complemented with other diverse forms of messaging, he added.