Total Compensation Statements can help employers to maximize their ROI.

Most employees extremely underestimate their total compensation package. As a result, attracting and retaining valuable employees can be a huge challenge. Ensuring employees understand and value their total rewards package can help an organization:

  • To attract new recruits.
  • To motivate and retain your high performing employees.
  • To reinforce your brand and set yourself apart from your competition.
  • Raise awareness and appreciation by directing attention towards your benefits program.

How can you communicate to your employees the value of their Total Compensation?
A quality ‘Total Compensation Statement’ provides employees with a personalized document that communicates the overall value of their financial rewards such as overall pay, incentives and employee benefits.
These statements can also be used to communicate less noticeable benefits such as work/life programs, training and development and holiday/vacation time.

Total Compensation Puzzle

When should you present employees with a ‘Total Compensation Statement’?
Some organizations like to provide ‘Total Compensation Statements’ annually to their employees. But, there are lots of additional opportunities to communicate to your employees the value of their total compensation:

  • During the hiring process. This way your new employee knows just what you are offering in the way of compensation compared to your competition.
  • During a review, so the focus is not solely on salary.
  • When offering a promotion, to ensure the employee sees the value of the additional perks.
  • When a significant life event has occurred, as this usually impacts the cost of benefits.

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