Final answer:
Employers produce a total rewards statement to increase employee engagement and motivate them by showing the complete value of their compensation, which aligns with the efficiency wage theory. The correct answer is option d.
Step-by-step explanation:
The key purpose for employers to produce a total rewards statement is to increase employee engagement, which ultimately drives business results. The concept behind this is closely related to the efficiency wage theory, which suggests that employees are more productive when they receive compensation that is above market rates.
By understanding the total value of their compensation package, including both direct and indirect rewards, employees recognize their worth to the company and are therefore more likely to be motivated, engaged, and committed to their work, leading to increased productivity and benefiting the business overall.
Efficiency wage theory ultimately indicates that it is in the best interest of the company to invest in their employees through fair and often generous compensation as it minimizes the costs associated with turnover, hiring, and training new workers. Employers communicate through the rewards statement the various components of an employee's compensation, not just their wages, but also benefits, bonuses, and other perks, which collectively represent the true cost of employment and the company's investment in its workforce.