Total compensation statements help organizations who care about employee satisfaction, retention, engagement and performance. Compensation is always going to be top of mind for both employees and their employers. For employees and their families, compensation helps them move toward their financial goals. For employers, compensation is by far a company’s biggest expense and it’s important to ensure this expense works to meet business goals and ensure long-term success.
Compensation is often one of the top reasons an employee will leave a job. Unfortunately, a lot of folks aren’t looking at the whole picture. The number on the paycheck is just a slice of the total pie. Compensation is salary but it’s also bonuses, medical benefits, retirement contributions, tuition assistance, parking passes and so much more. But employees might not know the investment you are making by offering great benefits. That’s why a total compensation statement is so valuable.
Employees Like Benefits (But they have to know about them!)
“80% of employees would prefer new or additional benefits over a pay raise.”
Benefits and overall perks are extremely valuable to potential and current employees. A total compensation statement is the ultimate showcase for the benefits you offer. A statement is one of the best ways for employees to get a full view of all the benefits and amenities available to them.
The statement can also display the total amount you invest as an organization in each benefit for the employee. It’s a great way to show off the other half of the pie. On average, 30-40% of an employee’s total compensation comes from their benefits. A total compensation statement will show off this investment and ensure employees understand the true value of their compensation.
Easier Recruitment
“57% of U.S. job candidates report benefits and perks are among their top considerations before accepting a job.”
More and more job candidates will want to know what types of benefits you offer. A total compensation statement is a great recruiting tool. Think about this. What if you could pre-populate a statement that had the candidate’s name, job title, salary and benefits information? Do you think that would be a great way to showcase right off the bat how much the company values employees? Yes! Not only do you offer a great compensation package, but you also customized your recruiting tool just for them! It’s personal and showcases your benefits in a great light.
High Job Satisfaction
“84% of employees with high benefit satisfaction report high job satisfaction.”
Employees who understand their benefits and utilize them when necessary are more likely to like working for you. It’s just that simple. A total compensation statement can help employees understand what benefits are available and how much the company pays for them. This transparency can help employees feel grateful for the amount of money invested in them personally. For many organizations benefits can cost hundreds of dollars each month per employee. It’s so valuable when employees realize just how much the company invests.
Feeling grateful for available benefits often turns into employee satisfaction. That’s really why 78% of employees who get total compensations statements on an annual basis are more likely to stay with their employer. Total compensation statements connect the dots between payroll, benefits and perks for the employee, all leading to higher employee satisfaction.