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Archive for October 2011

Make a Statement about Your Workplace: Total Compensation Statements

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Your company is a great place to work. Maybe you offer not only a supportive and positive environment but also plenty of benefits — health, vision and dental insurance, paid vacation or maternity leave, 401K matches, Health Savings Accounts, flex accounts and other perks. Maybe you even offer on-site daycare, a tremendous convenience for employees with small children. Your workers benefit in all kinds of ways that don’t necessarily show up on their paychecks. But do they realize the monetary value of those perks — and for that matter, are you keeping track of it yourself?

According to the U.S. Chamber of Commerce, employers are paying up to 40 cents on these “extras” for every dollar they dole out in wages. But if you want your team to fully understand and appreciate that fact, you need to create a total compensation statement. This statement displays not only salary figures but all the extra benefits you provide as well, from that 401K match your new employee just received to the paid vacation your honeymooning staffer took last month.

Total compensation statements do a lot to clarify just what each position at your company is truly worth, both to the employee who occupies it and to you, the employer. Employees can see with their own eyes just how all the benefits attached to their jobs enrich their lives and save them money on things they would have to fund independently if you hadn’t included them. A total compensation statement is good for company morale: “Look at how we invest in our employees’ well being above and beyond a simple paycheck.” It’s also good for business, because it allows you to get a really good look at how those investments add up.

Since most companies are currently engaged in 2012 planning and performance review preparation, this may be a good time to add the total compensation statement.  Performing this exercise is as good for you as the employer as it is for the employee. I’m sure you’ll discover that your total package is more valuable than you thought and so will your employees.

If you’d like to learn more about total compensation statements — just ask us!

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Written by Dan Hettrich

October 21, 2011 at 2:11 pm

Posted in Uncategorized