Recruiting and hiring are a top concern for HR professionals this year. While there appears to be an influx of available talent based on unemployment rates, finding qualified talent, and convincing them to join your organization remains a challenge as the labor market evolves. Therefore, employers need to be strategic about both attracting and retaining talent.
Although your benefits package may be substantial, your employees might not know it or might not understand some of the benefits you offer. Total compensation statements demonstrate to employees the monetary value you are providing beyond the standard paycheck. Knowing the full value of their compensation packages can help increase employee morale and loyalty, and these statements can serve as a basic but helpful retention tool.
A total compensation statement includes the monetary cost of all forms of compensation on the part of the employer. This includes gross wages and extra financial compensation, such as bonuses or commissions, as well as the employer-paid portion of retirement plan contributions, and insurance premiums. In addition to the obvious compensation package, less-tangible benefits like flexible work arrangements and continuing education opportunities, and even other benefits such as dry cleaning services are valuable offerings.
The following are examples of perks and benefits you might share on a total l compensation statement:
- Salary/hourly wages
- Stock options
- Stock grants
- Employee stock purchase plan
- Retirement plan—401(k) matching contributions, pension plans, etc.
- Educational or employee assistance programs
- Social Security contributions
- Paid time off—including vacation time, sick leave, holidays, jury duty, etc.
- Group Insurance—including health, dental, vision, life, disability, etc.
- Voluntary benefits – including pet insurance, identify theft, etc.
- Wellness rewards—discounts, cash bonuses, etc.
- Relocation expenses
Benefits of Total Compensation Statements
Seeing the total cost of all benefits can be an eye-opening experience for your workforce. When provided, these statements can:
- Increase employee awareness and appreciation of all the benefits your company offers
- Increase understanding of the cost of benefits and the investment being made in employees
- Raise morale and improve retention rates
- Encourage and enlighten potential employees during the recruitment process
- Act as a yearlong reference for employees, reducing benefits administration cost