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Are total compensation statements worth it?

employer and employee conversing

No matter how generous your organization’s benefits package may be, employees may not be aware of or understand all the benefits offered. Helping them understand their total compensation package can improve morale and company loyalty. One way to inform employees is by providing a total compensation (benefit) statement.

This statement 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 salary; bonuses; commissions; stock options; employee stock purchase plan; retirement plan; 401(k) matching contributions; paid time off; health, life and disability coverage; wellness rewards (e.g., discounts and cash bonuses) and more.

The employer’s initial time and monetary commitment to gather data for a total compensation statement is worthwhile because it can yield the following results:

  • increased employee awareness around their benefits and the company’s financial responsibility associated with those benefits;
  • employees seeing a dollar amount for benefits that do not seem to have a tangible monetary value, like discounts or dry cleaning services;
  • promoting the idea of total compensation, beyond just a paycheck;
  • raising employee morale;
  • higher retention rates; and
  • showing total calculated compensation on top of base pay to potential employees, making your organization more competitive in the hiring process.

Where do you start? Check out this sample total compensation statement (which requires customization) for a guideline on what to deliver to your employees. For more information about employee benefits, our services and products, contact HANYS Benefit Services by email or call 800.388.1963.

This article is intended for informational use only and should not be construed as professional advice. ©2022 Zywave, Inc. All rights reserved. 

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