We’re hearing a lot these days about the high level of employee turnover. While partially due to economic and societal conditions beyond an employer’s control, employee dissatisfaction also plays a role. The good news is, with total compensation statements, companies can help boost morale, grow employee loyalty, and reduce turnover.
Total Compensation Statements to the Rescue
Most companies pay for a wide array of benefits, resources, and perks—but, if employees only know one number (their salary), employers are missing out on an important opportunity to show the full value of their compensation package.
In response, a large percentage of successful companies provide total compensation statements to their employees. Why? Because they’re effective.
Show them the money.
The reality is most employees forget their company picks up the cost of a variety of benefits, resources, discounts, and programs. Total compensation statements are a great way to remind them about all the perks they get above and beyond what’s reflected in their paycheck.
What should be included in an effective total compensation statement? The company-paid portion of benefits, such as:
- Salary, Overtime, and Bonuses
- Medical, Dental, and Vision Benefits
- Life, AD&D, and Disability Insurance
- Flexible Spending Account Contributions
- Employee Assistance Program
- Paid Time Off (e.g., Vacation, Sick, PTO, Holiday, Bereavement, or Jury Duty)
- Retirement Benefit Contributions (e.g., 401(k), 403(b), or Pension Plan)
- Wellness Programs and Incentives
- Profit Sharing or Stock Options
- Educational Assistance
- Company Cell Phone or Vehicle Expenses
- Development Opportunities
- Company-Sponsored Events
Grab their attention and keep it.
Sharing personalized, in-depth total compensation statements with employees is only valuable if they are actually seen. The best statements consider:
Designs with Maximum Impact
Total compensation statements include a large amount of data; using innovative features can make them meaningful and easy to read.
- Establish Confidence: Start with a welcome message from the CEO or Human Resources and incorporate company-branding elements employees will instantly recognize and trust.
- Explain the Data: Information is more impactful when people understand it. Use elements, such as charts, graphs, and tables to break down information into meaningful data employees will remember.
- Have Fun: Include visually appealing images, company photos, helpful callouts, and clever taglines. These can help retain employee attention.
Print or Digital Delivery
There’s more than one way to get the word out. Consider the employee population and company budget when deciding whether to deliver a printed or digital total compensation statement.
- Print: Send personalized statements to employees’ homes. Additional printing and postage costs may apply.
- Digital: Offers a secure login for employees to access their personal statement from their work or personal devices.
Turn top talent into loyal employees.
People are more likely to be engaged in their work when they feel appreciated. Even more than compensation, feeling appreciated leads to higher job satisfaction, improved morale, and company loyalty. Total compensation statements are a powerful way to give employees insight into their value to the company. This knowledge can help them realize there’s more to income than salary alone. In turn, your company can shine brighter than the competition and your employees may think twice before leaving.
High employee turnover negatively impacts a company’s bottom line. A rich compensation package gives employees a good reason to stay. Annual total compensation statements provide a powerful visual message of the company’s investment and the employee’s value. Share the data and enjoy a happy, loyal workforce.