Want Engaged Employees? Show Full Value with Total Compensation Statements
You’re in HR, so you know how much your organization invests in its employees. But many employees feel they’re paid unfairly – one-third, according to a Gartner survey. And that can hurt employee engagement and retention.
In light of the Quiet Quitting phenomenon—not to mention the Great Resignation, the Great Reshuffle, the Great Reevaluation, the Great Reskilling, and every other “The Great” we’ll likely see in the next few years—companies should revisit their total compensation strategy and reemphasize that proposition for employee engagement.
Bottom line: While the Cuba Gooding Jr. quote, “Show me the money!” is showing its age, the sentiment still rings true—your employees want to see that you value them.
Why provide total compensation statements?
Pointing your employees to the big picture helps you maintain an engaged workforce. Your benefits package—and any other perks you provide—is basically a hidden extra paycheck. It’s easy for employees to underestimate the value of these benefits, but you can communicate total value in black and white.
Remember – pay transparency reduces the intent to quit by 30%, according to Payscale research. The simplest way to ensure this is by offering total compensation statements.
And, with the bswift Communication Agency, you’ll have experts who know how to amplify the complete value of their total comp while and delivering an uber-personalized snapshot
The benefits of total compensation statements
A total compensation statement looks at all the monetary ways you compensate an employee. So how exactly do they benefit HR and their employees?
- Enhanced Engagement: Employees with a clear picture of their full compensation are more engaged at work, according to Harvard Business Review. By showcasing the comprehensive value of their compensation, you can increase employee satisfaction and foster a stronger connection to the organization.
- Attraction and Retention: Total compensation statements serve as a powerful tool in attracting and retaining top talent. When candidates see the full scope of the compensation they’ll receive, they’re more likely to choose your organization over competitors. Additionally, employees who recognize the value of their compensation are less likely to seek opportunities elsewhere.
- Empowered Salary Negotiations: Present potential new hires with a clear and comprehensive picture of their total compensation. This transparency in total compensation helps HR professionals demonstrate the value that the organization places on its employees, and their commitment to fair pay.
What should a total compensation statement include?
Creating an individualized total compensation statement for every employee can be a demanding and time-consuming process. You need to break down all the ways your company invests in its employees – and that can be a lot.
The components of a total compensation statement can be broadly divided into three categories:
- Direct compensation: This encompasses the employee’s base salary or hourly rate, overtime pay, commissions, bonuses, and any other forms of incentive pay.
- Indirect compensation: This category covers costs associated with employment, such as social security.
- Benefits: This includes the various components of the employee benefits package.
Examples of what could be included in a total compensation statement:
- Base pay (salary or hourly wages)
- Additional pay (longevity pay, hazardous duty, etc.)
- Bonus pay (annual, merit, performance)
- Profit sharing, commission, and other performance-based awards
- Unemployment tax
- Social security tax
- Workers’ compensation insurance
- Paid leave (sick, vacation, holidays, and personal leave)
- Employer-paid health, vision, and dental insurance
- Employer-paid disability and life insurance
- Pet insurance
- Retirement, 401k, or pension fund investments and matches
- Stock options
- Employee assistance plans
- Tuition assistance programs
- Learning and development opportunities
- Relocation assistance
- Discount programs
- And more (just think of the great fringe benefits you provide your employees!)
Accuracy is essential
Count on the bswift Communication Agency to help
When it comes to total compensation statements, accuracy is not just a desirable trait – it is absolutely essential. A total compensation statement should be personalized to accurately reflect each individual employee’s benefits package.
If the information is inaccurate, the statement isn’t worth the paper it’s printed on. Anything less than an accurate statement can negatively impact employee engagement and damage the employer-employee relationship. That’s why it’s so important to lean on the expertise of award-winning professionals like the bswift Communication Agency when you create total compensation reports for your employees.
As indomitable and endearing Apple TV+ character Ted Lasso would say, “Believe!” Have faith that living your values and investing in people will motivate them to give their best. And let the bswift Communication Agency be your partner in realizing this vision.
Lean on the experts at bswift
Contact bswift today for informative and impactful total compensation statements.
Email us at email@example.com or call 877.9.bswift (1.877.927.9438).