Do Your Employees Appreciate Their Benefits and Make the Correlation to Their Total Compensation?
It’s just a fact that employers, especially those in highly competitive industries, must have a striking benefits package to remain competitive in attracting and retaining the best employees. You probably spend a great deal of time and money providing your employees with an attractive benefits package, but do they actually appreciate what you’ve invested? Do they even have the slightest idea of how much it costs you to provide them with it?
Sadly, most employers will find that their employees have no idea what they invest in providing good benefits. In fact, a number of surveys have shown that most employees vastly underestimate how much their employer contributes toward their benefits. These surveys also typically find that employees tend to have a negative attitude about the benefits their employer offers. Most employees tend to focus more on elements like cost-sharing methods and uncomfortably rising premiums.
The good news is that most employees don’t have this attitude because they’re ungrateful, but rather because they really just don’t realize how much it costs you to provide them with their benefits. Considering you want and need a return on such a major investment, you are left with figuring out how to better educate your employees on your side of the story. Total compensation statements are one way you can show and tell the compensation story and help employees better appreciate their benefits.
Give Employees a Total Compensation Statement
If you asked your employees to write down their total compensation, they’d probably write down their gross income. Even though what you pay toward an employee’s benefits makes up a substantial portion of what you’re paying to keep them, an employee rarely considers what you’re paying toward their benefits as compensation.
You can illustrate the value of total compensation by breaking it down into various parts charts and graphs like the ones myBenefitStatements uses when they create a total compensation statement. When considering benefit total compensation statements, be sure to include any other compensation perks, such as employer-paid license fees, tuition reimbursement, on-site childcare, and so forth.
Include Cost as Part of Your Benefits Education
Most employers, whether it is during orientation for new employees or during annual enrollment periods, will provide at least one setting for employees to learn about their benefits. Employers shouldn’t miss out on the opportunity to also emphasize the value of the benefits being offered and to remind employees that benefits are part of their total compensation. myBenefitStatements is now partnering with a number of employer groups to provide total compensation statements during annual review time to show the total cost of benefits; what you, the employer, pays; and then the portion that the employee pays as well as pay increases and incentives paid throughout the year.
It will be impossible for you to capitalize on your investment in benefits if your employees don’t appreciate what you’ve invested. Remember, total compensation or benefit statements can go a long way to improve how your employees view their benefits.