21 Mar The Benefits of Offering Employee Benefits Statements
When it comes to compensation, the figure that employees will be most concerned with is almost always base pay. But as you know, there are many other components that factor into employee benefits statements, which are also referred to as a total compensation statements (source: SHRM).
Recently, more and more companies have begun compiling total compensation statements for their employees. While base salary may indeed be the primary interest for the majority of your employees, giving them a detailed list of the benefits provided by your company can provide many advantages, according to HR Daily Advisor. Here are just a few:
- It Illustrates The Concept Of Total Investment From The Company’s Perspective:
In addition to base salary, the “extras” you provide cost your organization a certain amount of money. By breaking out and itemizing these additional benefits, you’re showing employees that to you, they’re worth even more than their base salary.
- It Creates A More Well-Rounded Picture For Comparison Purposes:
Should your employees ever wonder how they’re being compensated in your company versus other employers in the industry, they can use their complete employee benefits statements as a gauge, instead of just their base salary. Thus, presenting the complete picture may make your organization appear more competitive.
- It Boosts Workplace Transparency
There’s been a recent push towards creating more transparent workplaces, which is likely due to the fact that “only about half” of U.S. workers feel that their employers are upfront and honest with them, according to a 2014 American Psychological Association study. When you provide a total compensation statement, you’re dismantling the idea that there’s a “hidden paycheck,” and are instead being completely open and transparent about compensation. This will foster trust between you and your employees, which can also boost commitment and create a company culture that’s healthier overall.
Of course, your employee benefits statements will include the normal figures, such as base pay, bonuses, and the value of vacation, PTO, and sick days, as well as insurance plan premiums. From there, “extras” should be determined by your organizational goals and priorities. You can consider incorporating contributions to employees’ 401(k) plans, stock options, reimbursements for traveling, tuition assistance, and so forth.
One way to simplify employee benefits statements is by using total rewards software. HRsoft’s REWARDview facilitates better communication surrounding compensation packages and gives employees a thorough overview of all that your company offers them. Learn more about REWARDview here.
HRsoft is a leading provider of strategic talent management software that improves manager effectiveness and business results. Our full suite of cloud-based HR software solutions includes applicant tracking software, compensation planning software, total rewards software, stay interview software, performance management software, and content management software. For more information on our Total Rewards Software, REWARDview, click the button below!