Get More Bang for Your Buck with Total Comp Statements

Employers should share Total Compensation Statements with their employees to highlight the value of the total rewards package beyond the employee’s salary. A brief, yet comprehensive summary of an employee’s total pay creates awareness to benefits that employees may overlook.

By providing personalized Total Compensation Statements, employees gain a new appreciation for their employer’s investment into their career. For instance, many employees do not recognize the following items as part of their total rewards package:

• Employer-sponsored Insurance plans, such as Medical, Dental, Vision, Life, Short-term Disability, Long-term Disability, and other coverages
• Paid time-off and holiday pay
• 401(k) or other retirement plan contributions made by the employer
• Vehicle allowances, mileage and/or fuel expenses, mileage, and Health & Wellness reimbursements
• Professional development costs including tuition reimbursement, conference registration fees, certifications costs, professional license fees and more
• Child care benefits such as paid parental leave and day care expense reimbursement
• Other rewards such as gifts for various occasions, company-sponsored outings and meals

Total Compensation Statements should include all company-paid benefits in a short summary document, ideally 1-2 pages.  Color coding and use of charts is recommended to catch the reader’s attention and to highlight the details. Once a personalized Total Compensation Statement template is made, implementation is easy.

Sharing total compensation information with employees is a useful means to drive employee understanding and satisfaction. By creating personalized compensation reports for each employee, employers will not only be educating their employees, but likely changing their employee’s thought process on what ‘pay’ really means.

If your company is interested in learning how to create and implement Total Compensation Statements, please reach out to the HR professionals at EctoHR, Inc. at 810-534-0170 or email hr@ectohr.com.