What Should be Included in a Total Compensation Statement?
Whether you’re looking to improve your employee retention or simply trying to show the value of your benefits package, everyone needs to consider the following information when creating Total Compensation Statements. Total Compensation Statements are designed to show employees how important they are to their organization and to emphasize what they receive in return for their time and talents.
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, bonuses, or cash incentives. 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.
- Information on Salary or Wages
- Medical coverage
- Information on Flexible Spending Accounts
- Paid leave
- Voluntary Benefits
- Retirement Benefits
- Stock Options or Grants
- Education and Training Opportunities
- Wellness Rewards
Have a favorable contribution?
Consider showing both employer and employee contributions to benefits, allowing the larger employer contribution to gain more attention and emphasis. Employers should also consider showing benchmarking information. This allows employers to provide their team with a visual aid that informs employees how the company stacks up against national averages. This is an excellent way to draw attention to your company’s unique plan.
Show Them Their Worth!
If your company provides a specific product or service, you may also consider showing the employee how many of those items need to be sold to pay for that employee’s salary. For example, “It takes 10,000 (of your products) to cover the costs of your compensation and benefits!”
What Sets You Apart?
Finally, Total Rewards include the Company experience as well (relational rewards). Does your organization provide unique benefits such as drinks, snacks, employee relations events (parties, employee recognition awards), flex scheduling, target incentives and so forth? If so, you should definitely highlight these items. While there may not always be a dollar value associated with them, these are the benefits that make your company unique! These might just be the very reason your employees have chosen to be a part of your team. Remember, “Happy Employees, Happy Employers!”