Benefits Communication 3
This research project was exploratory in nature. The research objective was to understand
the communication process and characteristics involved in benefits communication, including
functional approaches, categories of benefits provided, materials and channel employed, and
managerial perception of effectiveness of benefits communication. The literature review will
summarize the main academic findings on benefits communication, such as benefits satisfaction
and communication, decision-making and understanding of benefits, involvement and benefits,
and last, communication channels for communicating benefits.
Literature Review
To succeed in the competitive and changing business environment of today, organizations
are aware that they must attract, retain, and reward competent employees by offering attractive
employee benefit packages. However, organizations must design and communicate these benefit
options to their staff. How benefits are communicated, initially and on an ongoing basis, may
influence the relationship between the employees and the organization. If employees do not
understand the benefits programs they may not appreciate their worth. In fact, the definition of
benefits emphasizes that to be considered a benefit, it has to be communicated as a benefit.
Lengnick-Hall & Berman (1994) define a benefits as
any non-wage membership reward. To be considered a benefit, an item must meet the
following criteria (from the organization’s perspective):
It has a cost to the organization (either direct or indirect)
It is discretionary (i.e., not mandated and the level and/or form can be varied)
It is communicated by the organization as a benefit
It is provided to all or broad groups of employees according to some consistent policy (p.
106).
Convention