The Reschini Benefits Blog: Total Compensation Statements
For many employees, the paycheck represents the sum total of how their employer compensates them. But in many cases, that’s not the complete picture.
From the employer’s perspective, the benefits package offered to their workers may be quite substantial, but those same employees may not be aware of or may not understand the full scope of what they’re being offered. A Total Compensation Statement can help raise appreciation, morale, and loyalty among the members of a workforce.
A Total Compensation Statement highlights the monetary value of a company’s benefits package, including those perks that may be overshadowed by traditional benefits, to include information on:
- Salary
- Bonuses
- Commissions
- Stock options
- Stock grants
- Employee stock purchase plan
- Retirement plan
- Social Security contributions
- 401(k) matching contributions
- Paid time off
- Coverages for health, life and disability insurance
- Wellness rewards (e.g., discounts and cash bonuses)
By assigning a dollar amount to benefits that do not seem to have a tangible monetary value, employers can promote the idea of total compensation, beyond just a paycheck. Pulling back the curtain in this way can lead to higher retention rates among employees and can make the organization more competitive when talking with recruits during the hiring process.Committing to providing Total Compensation Statements will require some investment of time and resources to gather and present this data, but the return on this investment can be more than worth the effort.Contact the Benefits team at The Reschini Group for more information.Here is a resource for total compensation:Total Rewards - Compensation and Benefits
Copyright 2021 The Reschini GroupThe Reschini Group provides these updates for information only, and does not provide legal advice. To make decisions regarding insurance matters, please consult directly with a licensed insurance professional or firm.