12 Jun 4 Compelling Advantages of Total Compensation Statements
Total compensation statements provide a broken-down look at all of the components of employees’ compensation. They can cover both hard-dollar components, such as base pay and cash bonuses, as well as intangible benefits. Here, we look at some of the ways compensation statements can benefit your organization.
1 Attract & Retain Employees
Because employee turnover continues to be a concern for virtually all industries, companies that provide an optimized value proposition may perform better in the areas of attraction and retention of top talent. Compensation statements do just that by presenting a comprehensive outline of how they’re paying employees.
2 Reinforce Your Brand
Entrepreneur reports that strong branding helps companies recruit better candidates and improve productivity. It can enforce company culture and allow employees to establish a stronger connection to the organization’s values and missions. By customizing your employee compensation statements, you can strengthen your branding to make a positive impact on your workforce.
3 Boost Enrollment
Employees can’t be expected to take advantage of benefit options they’re unaware of. One way to drive enrollment in optional benefits programs is to provide total compensation statements. These can even be delivered to employees shortly after hire, or, a sample one can be provided during recruitment stages. This ensures that employees are aware of all benefits options from the start, which is important since bayt.com reports that the majority of employees appreciate employers’ initiatives to help them maintain wellness.
4 Reduce Administrative Burden
Lastly, compensation statements keep employees informed about their benefits, which can help reduce the volume of questions your HR team has to field. You can even implement self-service portals to accompany your statements, featuring helpful resources such as links to FAQs, insurance providers, and retirement planning tools. In doing so, you’ll be able to reduce the administrative burden your HR team faces so they can dedicate their time and attention to more strategic initiatives.
HRsoft is the trusted global leader in compensation management software whose COMPview solution is proven to control and simplify the full process and allocation of merit, bonus and equity awards to drive manager and employee engagement.