Principle #3: Uncommunicated Value Has NO Value
Principle 3: Uncommunicated Value Has NO Value
Corollary 1: Communication is the simplest way to reduce turnover and increase engagement.
Corollary 2: How can you influence employee perceptions if you do not communicate your intent?
The white elephant has long represented a gift that appears impressive at first glance but becomes burdensome when its purpose, cost, or value is unclear. That makes it a fitting symbol for how many organizations deliver Total Rewards.
Companies invest heavily in pay, benefits, recognition, development, wellness, and retirement programs—then wonder why employees say, “The company does not do much for me.” The investment may be real. But the perceived value often is not.
And silence does not create a neutral impression. When employees do not know about an investment, they rarely assume the organization is doing something meaningful behind the scenes. They assume it is not doing much at all.
This follows Principle 2: Employees must understand how they are paid. But understanding should not stop at base salary or an annual merit increase. Employees need to understand the full exchange: what the organization provides, why it provides it, and how those investments are intended to support them.
If employees do not know what you are doing for them, they will assume you are doing nothing.
Communication is not the administrative step that happens after a program is designed and implemented. Communication is part of the reward itself. Employees respond to what they recognize and understand—not simply to what leaders intended to provide.
When employees do not understand the value being delivered, organizations face an important question: Does the investment truly influence behavior? And if employees cannot identify its value, how can the organization credibly measure its return?
KEY TAKEAWAYS:
Organizations do not receive credit for investments employees never recognize. Before spending more to solve an engagement, retention, or participation problem, first determine whether the organization has clearly communicated—and consistently reinforced—the value it already provides.
A Total Rewards program is not fully delivered when it is launched. It is delivered when employees understand it, managers can explain it, and its intended value shapes perception and behavior. Otherwise, employees may see a white elephant: something the organization spent money on, but something they neither understand nor value.
Above all, remember this: If employees do not know what you are doing for them, they will assume you are doing nothing.
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