16 Feb The Breakdown of a Total Compensation Statement
Ask your employees about how much they receive from the company as compensation and you are likely to get answers that vary widely. Some take into account only the pay they receive from the organization but are unaware of the intangible benefits they also receive. In an environment where employee turnover is such a cause for concern, it doesn’t make sense to bypass maximizing the impact of every penny spent by the business on improving the skills and the workplace experience of its talent.
Total compensation statements do just that! They are comprehensive break downs of all the components of a worker’s compensation, covering:
- Base Pay
- Performance Based Incentives
- Cash Bonuses
- Medical Insurance
- Life Insurance
- Dental and Vision benefits
- 401K Retirement Plans
- Paid Leaves
- Trainings Received
- Business Knowledge Accrued
- Experience Gained
- Growth Opportunities
- Facilities like Parking, Daycare and Gymnasium Access
But the mere creation of these statements may not achieve the goals of retention, engagement and better talent attraction. Many companies do not have any communication plan to present the statements in ways that is relevant and of interest to employees. This is where a total rewards system come in handy.
- They push these statements to employees via multiple channels and give employees access to their value and wealth summary 24/7.
- They pull information from the internet to create meaningful descriptions of the components, explaining exactly how retirement plans and medical insurance improve quality of life.
- They focus on the intangible benefits that make the most sense for a particular employee segment – this means focusing on the gas allowance for suburban workers who drive in every day or daycare options for parents.
- They also show the value employees stand to lose if they change jobs, including the monetary equivalent of possible promotions to leadership roles and skill upgrades.
If used effectively, a total compensation statement will boost engagement, improve retention and build marketplace reputation to attract key talent.
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!