Share the Value: Total Compensation Statements
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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 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. A typical total compensation statement may include information about the following:
- 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.
- Insurance—including health, dental, vision, life, disability, etc.
- Wellness rewards—discounts, cash bonuses, etc.
- Relocation expenses
Outlining the total cost of all these benefits can be eye-opening for your employees and can help them better appreciate the compensation package you offer them.
Providing the Information
In order to offer a total compensation statement to employees, both direct and indirect compensation totals must be compiled. Direct compensation refers to compensation paid directly to an employee, such as the employee’s salary. Indirect compensation includes forms of compensation that aren’t paid directly to an employee, such as employer-paid insurance premiums, retirement benefits and paid time off.
Many employers don’t offer total compensation statements because of the work involved in putting them together. Don’t let this common obstacle stop you from sharing the value of your compensation packages with your employees. Assurance is happy to support you in your efforts.
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