Total compensation and why you should care

Total Compensation can be defined as all of the resources available to employees, which are used by the employer to attract, motivate and retain employees.  Emphasizing everything your organization is offering your employees is the a great way to attract, motivate and retain the best talent.  Retaining top talent can be as simple as communicating to them how the grass is green right where they are now.  With the job market improving, you don’t want to be “snoozing” while your employee is actively looking for something “better”.  Most employees tend to underestimate the value of their benefits and perks.  You can change that perception by showing them the true value of TOTAL compensation.

Employees are always looking, for something better? For something more? For ?.  With the job market improving, candidates are able to be very selective when evaluating job offers.  Those really great candidates, you know the ones, will probably receive multiple offers at once.  You want to be the one on top with the best foot forward and the best TOTAL compensation.

Once you’ve got them, you want to keep them!  Regular reminders of their total compensation package to help keep them excited is important, and don’t get complacent because there is always a recruiter or another company to entice that great employee away.  If this is happening, you’ve been “snoozing” in regard to your compensation communications.

Total compensation can be used in many ways, but here are 3 simple ways to improve your program

  1. Be Flexible:  It’s easy to offer just the basics for Health, Financial and Wellness, however not everyone will value the same benefit in the same way.  Every employee is different and has different needs and interests.  The total compensation should be varied and flexible enough to be appealing to most employees.
  2. Communicate Often:    A total rewards program doesn’t do you any good if you’re not communicating all the benefits and perks regularly to your employees.   Make it a regular practice, keep is simple and graphically illustrate the big ideas.  Current annualized benefit statements is best communicated during new benefit offerings, before performance reviews, and during interview process.  You should produce them both digitally (via email and your company intranet, for example) and in hard copy. Here are a few examples.
  3. Evaluate Regularly:  Ok, so you have a great compensation program in place, now what?  As the business environment changes so should your benefits.  Evaluating your benefits regularly allows you to add value with new benefits as well as keep you current employees engaged and loyal to the company.

This is the time to analyze what you’re currently doing, how it matters to you or how it could potentially impact your business overall.  Take a step back and look at your total compensation, are these things you’re doing or would you like to see improvement?

Comments are closed.