What Are the Benefits of Total Compensation Statements?
Question:
What are total compensation statements and why should I consider them for my employees?
Answer:
Most of the time, an employee’s pay and benefits spread far beyond the base pay. A total compensation statement can be anything from a simple, computer-generated spreadsheet to an elaborate, in-depth analysis with charts or graphs. Providing total compensation statements is an easy way to share with employees how much the company has invested in them.
Total compensation statements typically include, but are not limited to:
- Base pay, bonuses and commission
- Paid leaves, PTO
- Car/phone allowance
- Employer contributions for Medical, Dental, and Vision coverage
- Employer contribution for Flexible Spending, Retirement, etc.
- Employer contribution for Life Insurance and Short-Term and Long-Term Disability Insurance
- Stock options
- Tuition assistance
- Training and development opportunities
- Travel expenses
- Company discounts
- On-site child care
Why should an employer consider total compensation statements?
The use of total compensation statements has proven that an extremely high percentage of employees now have a greater appreciation for the value of their employer paid benefits. This boosts employee satisfaction, which in turn, leads to retention.
Tips:
- Include a letter from the president of the company or Human Resources. By doing this, you are creating a message with a purpose.
- Highlight benefits or programs that are often forgotten by many employees.
- Be available for questions from employees or hold a meeting to address these questions.
Strategic HR offers assistance with a variety of Benefits and Compensation needs including total compensation statements. Contact us now for more information and to talk about how we can help you create total compensation statements.
