Benefits of Total Compensation Statements
Though your benefits package may be quite substantial, your employees may not know it or may not understand some of the benefits you offer. Helping employees understand their total compensation can raise morale and may increase loyalty to your company. To assist your employees in fully comprehending their benefits package, consider providing a total compensation (benefit) statement.
This communication highlights the monetary value of your benefits package, including those perks that may be overshadowed by traditional benefits, to give an overall view of your benefits package. A typical total compensation statement may include information about the following:
- Salary
- Bonuses
- Commissions
- Stock options
- Stock grants
- Employee stock purchase plan
- Retirement plan
- Social Security contributions
- 401(k) matching contributions
- Paid time off
- Coverages for health, life and disability
- Wellness rewards (e.g., discounts and cash bonuses)
Benefits of Total Compensation Statements
- Increase employee awareness of their benefits and how much those benefits cost the company
- Provide a dollar amount for benefits that do not seem to have a tangible monetary value, such as dry cleaning services
- Promote the idea of total compensation, beyond just a paycheck
- Raise employee morale because they tangibly see the array of benefits being offered by their employer
- Higher retention rates by employees
- Reduce the workload for Human Resources professionals by eliminating the need to manually prepare, print and mail statements to each employee
- Show potential recruits their total calculated compensation on top of their base compensation to make your organization more competitive in the hiring process
Employers must make an initial time commitment of gathering data and presenting it. There is usually a cost associated with compensation statements. Contact Faison Group for more information.
How can my company obtain total compensation statements?
Contact Faison Group for assistance with your total compensation statements. We have a wide array of solutions for you to share with your employees.