How important is it to your organization to have “identity protection” show up in your employees’ total compensation reports? In the past few years, concerns over identity theft have slowly been making their way into benefit options as companies look differently at protecting their employees from data hacks. With the massive security breach at Equifax Inc., which, according to USA.gov affected 143 million consumers, even more companies are likely to add identify theft protection to their complement of employee benefits as early as 2018.
Current estimates are that about 35 percent of companies now offer some sort of identity theft protection. The reasons are straightforward. Security breaches expose an individual’s personal data – driver’s license, bank account, and social security numbers – to relentless hackers. The Insurance Information Institute notes that in the last seven years, identity thieves have amassed $107 billion from stolen identities. Many hackers take the data to sell it, such as bundling credit numbers to sell in groups to willing buyers, or keep the best data to use for themselves and use it to steal from unsuspecting individuals. From law offices to Dropbox, hacks pose a serious threat to employee well-being, and company benefits are a critical avenue for companies to respond. And companies must respond because the costs of identify hacks are high.
For employees, the costs extend far beyond recovering overcoming any direct financial losses. It can take months of phone calls, emails, and correspondence to contact creditors and repair credit reports. Most of those calls must be made during working hours, so many victims of identity theft are either distracted at work or need to take some time off. The amount of time an employee must consume during normal working hours to straighten out this mess that’s of no cause of their own are way more hours of company time than any company would want to lose. But, the employee has no choice. So, if you won’t give it to them, they may feel forced to take it anyhow.
Other victims find that having their identity stolen is traumatic, which means they must also recover from the emotional stress. For these reasons, identity theft can lower employee productivity.
For companies, however, the benefit to the bottom line begins with their employee’s well-being. While the jury is still out on the effectiveness of anti-identity theft protection, studies show that employees gain peace of mind from the benefit, and with peace of mind comes increased productivity – and profitability. Identity-theft protection offers peace of mind to companies, too, because most hackers make their way into corporate accounts through employee’s personal records. Shutting down employee identify theft also protects the company.
The best news for employees and employers is that the benefit is not only low-cost to employees since it is non-taxable benefit, but companies can usually get the employee coverage from issuing companies either free-of-charge or at a steep discount. There is a great likelihood that companies can successfully negotiate a preferred rate from a quality service.
It should come as no surprise that the fastest growing benefit option is identity theft protection. So, companies moving too slowly with ramping up their identify theft protection benefit risk losing their competitive edge in recruiting and retaining valuable employees.
Benefits don’t need to be expensive to be appreciated. Low-cost perks can leave a high impact. One such perk is ‘Summer Fridays’ in which employers allow employees to leave a few hours earlier on some, most or all Fridays of summer.
Cost of Summer Friday
The great thing about this perk is that it makes for a significant addition to employees’ total compensation reports, yet it doesn’t cost much to implement. If anything, you save more on electricity, water, and other office expenses when people aren’t at the office. In terms of productivity, you’re not sacrificing a lot, either. According to a survey conducted by Accountemps – an accounting staffing firm – Thursday and Friday are the least productive days of the week. Your employees may be physically present to complete their full hours on Fridays, but they’ve already mentally checked out of work and checked in to the weekend. Given this, perhaps you might as well make them happy by allowing them to leave early, especially on long weekend holidays. Of course, it may be challenging to implement Summer Fridays for hourly-based jobs (like contact center representatives), but for output-based jobs, it shouldn’t be a problem. As long as your employees meet their expected deadlines, they should be good to go at the end of the work week.
Effect of Summer Friday
A flexible work schedule – which is what Summer Fridays is essentially part of – increases morale and satisfaction, which in turn increases productivity. Employees who enjoy work-life balance feel that they’re in control of their schedules, and not the other way around.
In addition to that, Summer Fridays in particular prevents burnout by giving employees something to look forward to every week. It also gives them the motivation to finish their tasks well before the deadlines, so that they can enjoy this perk. It’s a win-win situation for both staff and company.
To ensure your employees fully appreciate Summer Friday, make sure to quantify it in their total compensation reports. Even if they’re not paid by the hour, you can still compute their hourly rate from their yearly rate. This makes it possible for you determine the monetary value of the number of hours they’re allowed to take off for Summer Friday.
In the latter years of running Blattner Brunner, an advertising agency with over 100 employees, we instituted Summer Fridays off for noon on from Memorial Day to Labor Day, but with the caveat that each employee was responsible to make up the four hours anytime during each work week. We never monitored it. Didn’t feel we needed to. The benefit to making our agency a best place to work was significantly felt, especially during a time of tough recruiting for the best and the brightest … a time we’re also in today.
If you still haven’t implemented this perk yet, now is the perfect time to start!
Joe Blattner is the Founder and CEO of COMPackage.com, makers of the COMPackage Total Compensation Reports.
A good compensation package attracts and retains top talent, so it’s crucial for companies to provide the best they can offer. It’s why employee benefits statements are so crucial — they serve as a measurement of just how much a company is willing to invest in its people.
But if your company is working within a fixed budget, how can you provide enticing benefits without overspending? How can you go beyond government-mandated benefits and deliver something extra?
The answer is in low-cost but high-impact benefits. Some of the perks employees appreciate the most are affordable enough not to dent your budget. Here are some examples:
Work-life balance is a goal for many employees, so help them achieve that by giving them a flexible schedule. There are several ways to accomplish this, such as authorizing a couple of work-from-home days every week, implementing staggered hours instead of a fixed login time, or allowing people to offset shorter hours in one workday with longer hours in another workday.
You’re not giving money to your employees when you offer them flexible schedules. You’re giving them time, which, to many, is far more valuable.
Paid vacation leave
The US doesn’t require employers to grant paid vacation leave to employees. But all work and no play makes Jan a disgruntled worker, so it’s better to allot a fixed number of paid vacation days which your employees can use whenever they want to as long as they give advanced notice.
To avoid going over budget, don’t make unused days convertible to cash. Forfeit them at the end of the year and reset the counter at the start of the new one. Or you might choose to give an extended rollover period, for example for a period of three months.
Financial planning assistance
According to a 2016 survey by Magnify Money, more than half of Americans are living paycheck to paycheck. Given how large this statistic is, chances are that many of your employees are living this way, even if they’ve been working for years.
Help them out by teaching them how to fish. Offering financial planning assistance won’t cost your company a lot, but it can make a world of difference for your employees who are struggling to budget their money wisely.
Corporate rates on insurance plans
Individual rates are higher than corporate rates, so your employees will appreciate it if they can get a discount through your company on life, accident, auto and other kinds of insurance.
Also, automatic payroll deductions make payments faster and easier. This added convenience is a benefit worthy of being included in employee benefits statements.
Where do your employees get their morning coffee? Where do they work out after they leave the office? Most likely, it’s that cafe around the corner and the gym a couple of blocks away, respectively.
Thus, approach nearby commercial establishments to see if you can get discounts for your employees. A lot of businesses will be happy to oblige if it means more customers.
These examples clearly show that although monetary compensation is of primary importance for many people, the little things do add up and make a difference. But your employees won’t get to appreciate the full effect of these perks unless you lay it out for them in employee benefits statements from companies like COMPackage.com. Only then will they see the total value of the compensation they’re receiving. If you’ve been looking for a way to boost staff morale, employee benefits statements are the way to go. After all, you can’t appreciate what you don’t know you have.
You can promote employment opportunities on corporate talent networks. You can use assessment science to put the right prospects in the right places. And you can invest in technology that delivers an exceptional candidate experience.
But at the end of the day, there’s still one recruitment tool that outshines all others: employee benefits.
Here’s a look at five ways offering quality employee benefits helps improve employee work base and attract top talent.
1) Increase your appeal
Skilled dedicated workers are the lifeblood of every successful business. They can also be difficult to attract.
The best employees have options, so it’s important to make yourself more appealing by offering more than just the bare minimum of baseline pay, two weeks’ vacation and standard health plans.
Offering exceptional benefit packages increases your appeal. According to a survey conducted by Glassdoor, benefits and perks play a major role in helping people decide whether or not to accept a job offer.
Creating a benefits program that is better than the rest improves your ability to attract top talent–especially if you can show candidates employee benefits reports that demonstrate exactly what they will receive after accepting an offer.
2) Reduce the rate of turnover
Employee turnover is a normal part of doing business, but it still hurts.
Turnover increases recruitment costs, reduces productivity and affects other employees, teams and the entire business. It’s one of those costs that doesn’t necessarily show up in most employee benefits reports.
Minimizing your turnover rate is a smart move–and offering high-quality employee benefits is one way you can reduce your rate of turnover.
According to a study conducted by Glassdoor, four out of five employees want quality benefits more than they want pay raises.
Give current employees what they want and they’ll be less likely to leave.
Low morale comes at a high cost. It leads to turnover, low productivity, more employees calling in sick and even dangerous work environments.
There are a lot of ways to lower morale and just as many ways to improve it–including offering quality employee benefits.
High-quality employee benefits accomplish two things: They keep your employees healthier, which keeps them at work. And they demonstrate to employees that they are valued.
With that in mind, you can’t really afford not to offer high-quality benefits.
4) Healthy employees
According to the Centers for Disease Control (CDC) Foundation, absent employees cost U.S. employers more than $225 billion annually.
Employees who are sick and not in the office can’t help your company achieve its goals.
Health insurance helps keep employees healthy–and it helps them recover more quickly from illness and injury.
5) Increased productivity
The CDC Foundation says that people going to work sick account for almost two-thirds of all costs associated with employee absenteeism.
Sick employees aren’t productive and they put their colleagues at risk. So why do they continue to show up? Maybe because many workers (nearly four out of 10) don’t have employee benefits that include paid sick time.
This might save you money in the short-term, but over time it can cost you a lot more in productivity.
What do your employee benefits reports say about you?
Do your employee benefits reports show a company that differentiates itself from the competition, cares about keeping employees and works to keep them happy?
If so, you probably have happy, healthy, productive employees. Now, make sure they know what you’re providing! Connect with Compackage.com to generate low cost, easy-to-use employee benefits reports.
Many company leaders, and similarly their employees, think that all company paid holiday policies are created equal. After all, they reason, these are national holidays. However, this is far from reality! At least 25% of companies nationwide do not provide for any holiday pay at all. The other 75% can provide from as little as one, to as many as thirteen, paid days off. So, the higher the number of paid holidays that your company provides, the more generous your company is.
Laws Governing Holiday Pay
Currently, there are no federal laws requiring an employer to provide holiday pay for their employees. Holiday pay is strictly a voluntary benefit offered by employers who wish to foster a positive company morale and bolster employee benefits packages. Indeed, the more lucrative the holiday pay, the more likely employees are to feel valued and appreciated. Especially if this benefit is defined in relative terms, such as in an annual benefit statement.
Understanding a Typical Holiday Pay Package
Many employers provide 1-5 paid holiday days, while others offer up to 10 paid days of holiday time off. Very few will offer the full 13 days of federally-recognized legal holidays, but there’s no doubt your employees will appreciate their place of work all the more if your company does. When added to other types of paid time off, including sick leave and vacation pay, this can represent upwards of an additional 13% of the salary for each employee (e.g., $5,200 for an employee with a $40,000 annual salary if you provide paid time off for 13 holidays, 15 vacation days, 5 sick days, plus bereavement or jury time off). Of course, the final value should be detailed in the employee compensation reports provided annually to your employees.
What Are Federally Recognized Holidays?
Employers may choose to offer holiday pay for any of the following federally recognized holidays.
- New Year’s Day
- Martin Luther King Day
- President’s Day
- Easter/Good Friday
- Memorial Day
- Independence Day
- Labor Day
- Columbus Day
- Veteran’s Day
- Thanksgiving Day (2 days)
- Christmas (2 days)
Are Companies Required to Accommodate Religious Holidays?
Religious holidays can be a tricky issue for companies, depending on the number of employees on staff, especially if those employees hold drastically different religious and cultural beliefs. Legal statutes require the reasonable accommodation of religious holidays. As such, many employers will offer 1-2 floating holidays in lieu of the holidays listed above. Let’s face it, few people may choose to celebrate Columbus Day, but there may be several employees who wish to celebrate Yom Kippur. By offering floating holidays, instead of sticking strictly to the federal holiday schedule, you allow employees to select the days which mean the most to them.
Must Holiday Pay Packages Be the Same for Everyone?
As long as your policy doesn’t discriminate based on age, gender, race or other protected classifications, policies may vary based on position within the company. For example, many companies will offer holiday pay to full-time staff, but not to part-time employees. When in doubt, seek the expertise of a compensation specialist to ensure compliance with labor policies.
Holiday Pay and Overtime
Employees often believe that holiday pay equals premium or overtime pay. This is simply not true. There are no requirements that mandate an employer pay overtime for holidays. In fact, in most cases there are no requirements that stipulate civilian employers must offer paid time off for holidays, vacation or illness. But if you do, you should detail it in your annual total compensation report!
Furthermore, holiday hours cannot be factored into the overtime calculations for the employee. Employees are only eligible for overtime if the actual number of hours worked for that week exceed 40 hours (and not a combination of holiday hours and hours worked that surpass 40 hours for the week).
Documentation and Holiday Pay
Holiday pay varies greatly from company to company. As such, it is vital that organizations outline their leave and holiday policies carefully to avoid employee confusion. As long as holiday pay is offered in accordance with established company policy, employers have the flexibility to create a policy that works best for their unique environment.
Lastly, all paid leave, including holiday pay, should be documented in the annual employee compensation reports. If your company is one with a more generous holiday pay package, let your people know. Such reports provide employees with a snapshot of their total compensation picture. Affordable online reporting systems, like those offered from COMPackage, can assist your organization with creating employee compensation reports that increase overall employee morale.
In 2014, the Affordable Care Act made 10 “Essential Healthcare Benefits” (EHB) mandatory, no matter the size of the company you work for or your healthcare provider. These requirements are set to come online in 2017.
Importantly, healthcare plans must be balanced among the 10 categories, namely,
- Outpatient care (care you get without being admitted to a hospital)
- Trips to the emergency room
- Treatment in the hospital for inpatient care
- Care before and after your baby is born
- Mental health and substance use disorder services
- Prescription drugs
- Services and devices to help you recover if you are injured, or have a disability or chronic condition
- Lab tests
- Preventive services
- Pediatric services
Your insurer can substitute benefits within each category, but cannot substitute one of the main categories, and it can change coverage, such as a benefit’s duration. Finally, under the EHB, your plan cannot discriminate against you because of your age, disability or your expected length of life. Here is some greater detail about the services that must be included.
Ambulatory patient services. These are the services that you likely use the most, since they cover your regular doctor’s visits. Most plans, regardless of your company’s size, usually cover this service.
Laboratory services. The new law requires that healthcare insurers cover preventive tests like Pap smears for women and prostate exams for men. However, your insurance coverage can bill other types of diagnostic, so check to see what is covered on Employee Compensation Reports.
Prescription drugs. The EHB mandates that all healthcare plans now cover some prescription drugs. All plans must now cover at the minimum one drug in every category and class of medications approved for use in the United States. And, when you pay for prescriptions the cost must be applied to your annual out of pocket expenses.
Maternity and Newborn Care. This new requirement entitles all mothers and babies healthcare before and after the baby is born since prenatal care is preventive care, so it must be given at no additional cost.
Emergency services. Your coverage extends to trips to the emergency room. EHB allows you to get emergency services even out of network with no extra fees. And, your plan can no longer require that you get preauthorization before you seek emergency services.
Hospitalization. This new requirement means your healthcare insurance must cover inpatient treatment for any serious medical concern. It does not mean, however, that you are exempt from paying a copay which can be quite expensive if you are still under your annual out of pocket limit.
Mental health and substance use disorder services. Perhaps this is one of the most extensive additions required by the EHB that is laid out in the Employee Compensation Reports. Your healthcare plan must include behavioral health care, substance abuse, and mental health coverage on par with that of the plan’s physical health benefits.
Rehabilitative and habilitative services and devices. Your plan likely already covers rehabilitation therapies like pain relief or learning to walk again, and cover equipment like wheelchairs. However, now habilitative services must also be covered, which are therapies that help with long-term disabilities like Parkinson’s disease.
Preventive and wellness services. These services include things like vaccinations, counseling and screenings that help to prevent more serious illnesses.
Pediatric services (including oral and vision care). Under EHB, now all children under the age of 19 can get dental and vision services, including one pair of glasses every year.
It’s important for employees to know what benefits they receive. Savvy employers use Employee Compensation Reports, like those from COMPackage.com, to highlight the total compensation an employee receives. After all, you can’t appreciate what you are getting if it’s not clearly spelled out. No one knows what changes the new administration will make, but such changes take time, so the aforementioned may be valid for a while to come.
Employees love seeing the full value of their benefits because they demonstrate how much their employers value them. But when employees do not know what benefits they actually have, or what the value is, it can lead to confusion and ultimately dissatisfaction with their employment. The solution: clearly written employee benefit packages statements shared annually.
Why are benefits so crucial to employee well-being?
Employee benefit packages include compensation along with other types of pay and incentives, including work-life benefits like paid leave, performance and recognition, development and career opportunities and other types of non-financial rewards. Generally speaking, since most employee benefits are not equity-based, they include the types of things that can make one feel more valued by one’s employer, and often one’s co-workers, too.
As an employee, your benefits can increase your quality of life and make your job more fulfilling. When all employees have great benefits that help with work-life balance, for example, they are more productive, easier to retain and take fewer days off. Of course, communicating these benefits in the hiring stage serves as a great recruitment tool.
Why do employees need to see their benefit statements on a regular basis?
All employees should receive their own personalized benefit statements at least once a year, because as they move through different lifecycles, from the birth of children to the desire for more education, to concerns about disability as they mature – their needs change and so will what they want from their benefits.
For example, work-life benefits are increasingly important to employee well-being. These benefits address overall quality of life for an employee and their position in their family and community as well as on the job.
The best employee policies and programs are designed to ensure that every employee is happy at home and at work and therefore include things like workplace flexibility programs, help with caring for dependents, paid time off, financial support with savings and other life issues, and programs that involve employees with the community, like charitable functions.
And, as employees move through their careers, they might also want more individualized benefits and services. These can include performance milestones, educational opportunities like graduate or professional degree tuition reimbursement or job-specific certifications and on-the-job training – all of which are linked to career advancement. They need an easy way to see and keep track of their benefits.
Can your employee benefits statement end the confusion?
At those moments when an employee is not feeling good about his or her job or an economic downturn has them worried about the future, seeing the full complement of their benefits in one clear statement can end any confusion they might have about their employer’s commitment to them.
You want employees to be content and productive in their jobs, and that’s what they want as well. This is why you they will appreciate your clearly communicated employee benefit packages statements. They can see what benefits they have, and the total value of their overall package. As many of us have short memories, it’s important to remind employees of these benefits on an annual basis.
For many people, employment is not just about the money. Though salary plays a big role on whether or not someone is happy with their job, the whole compensation package is what matters more – especially when the financial sum of all the benefits being provided is significant.
Thus, it’s important for your company to be able to communicate the full value of your benefits plan to all your employees, especially if there’s a change they should know about. But even without changes, employees may not be aware of exactly how much they’re getting, causing them not to take advantage of everything they’re entitled to, and diminished appreciation of their total employment compensation.
A sure way to inform your employees about their benefits is by issuing them a personalized benefit statement, but this is not an easy thing to do manually, even if you have a relatively small workforce. In this case, you’ll need employee statement benefit software like COMPackage to streamline and automate the process for you. But aside from this added convenience, here are other compelling reasons to invest in such a solution:
- Cost effectiveness — Manual creation of benefit statements (even with the help of Excel) takes time, especially for companies with more than 40-50 employees. Also, this is more prone to error. It’s best to use a specialized tool, like low-cost total compensation statement software, to minimize mistakes and speed up the creation process. When less effort and time are spent, your company can allocate a smaller budget for creating benefit statements without having to sacrifice quality.
- Customized statements — Different kinds of employees have different kinds of benefits, so it’s not advisable to use one form for everyone in the workforce. You run the risk of having some employees feel discouraged if they see benefits others are receiving at a higher pay grade. Using COMPackage employee statement benefit software addresses this by allowing users to define benefits according to only what they receive.
- Accurate computations — Some companies attempt to provide total compensation reports using spreadsheets. However, these are difficult to maintain. Moreover, they don’t help you identify many types of benefits that could be reported, such as non-monetary perks which can still have a quantifiable dollar value.
- Employee satisfaction — With employee statement benefit software, you can clearly lay out each aspect of an employee’s compensation package to help them grasp the total value of what your company is giving them. Once they do understand, they’ll be able to appreciate how better-compensated they are, leading to higher employee satisfaction, which can result in improved productivity and stronger loyalty.
- Recruitment advantage — A lot of employers and employees focus on the salary when recruiting and searching, respectively. But wouldn’t it be great if you could attract ideal candidates with the whole compensation package – which, on average, represents over 43% more than base pay – that your company can offer? And wouldn’t it be greater if you can present them with an easy-to-understand statement that lists all the benefits they’ll be getting and the total value of their compensation? When you use employee benefit statement software, you can create detailed customized reports on professional-looking templates fit to be given to top talent. It’s an effective way to attract them to your company.
People will always be the top resource of your company, so make sure you invest in them. It’s not enough to grant them a good compensation package — you also have to encourage them to make the most of it. With the help of COMPackage, you can give them the push they need.
Competitive employee benefit packages are the cornerstone of employee retention. While employers can often offer smaller perks and incentives to increase overall employee morale, without a comprehensive benefits package, new qualified applicants won’t walk through the door – and seasoned experienced employees will look for better opportunities elsewhere.
The Cost of Losing Talent
Employees leave jobs for a host of reasons. Yet each time your company loses an employee, there are qualitative and quantitative costs incurred. This comes in the form of lost productivity, advertising for a new position, hiring and training a replacement, and customer service issues with a reduced staff. A study by the Society for Human Resource Management indicates that, on average, it costs 6-9 months of an employee’s salary to replace that employee. For example, to replace an employee making about $60,000 per year would cost a company about $30,000 to $45,000.
Happy Employees Are Retained Employees
Maintaining a positive relationship with your employees is not a matter of guesswork. Employees want to know that they are respected and appreciated. They also want a balance between their professional and personal lives. Don’t be afraid to actively engage with your employees to determine what aspects matter most to them. This will help you narrow the focus of your employee benefit packages.
Building a Comprehensive Package
When thinking about employee benefits, it’s important to consider all aspects of an employee’s well-being. Far too often, small business owners focus solely on health insurance options. That’s a vital aspect of the benefits plan certainly, but it is not the only aspect worth considering.
Besides health insurance, the 401(k) is the second most important aspect of comprehensive employee benefit packages. Employees want to know they will one day be able to enjoy a comfortable retirement. It’s so important, in fact, recent studies have shown that a well managed 401(k) program can add approximately 8% to the overall profitability to the company.
Paid Time Off
All employees need the chance to recharge their batteries. It increases overall productivity and helps elevate employee morale. It’s also an important component of a comprehensive benefits package. Traditionally, companies offered different types of time off including sick leave, vacation, and holidays. Today, more companies are incorporating a more consolidated approach toward paid leave and allowing employees to decide when and how to utilize their personal days.
Short and Long Term Disability
Accidents and illnesses happen. Although we all hope to avoid them, many of us will at one point or another need disability insurance for ourselves or our loved ones. If your employee is suddenly out of work for a serious medical condition, they will need to replace their lost income to continue to provide for their family. Short and long term disability packages allow employees to have the peace of mind that their family’s needs will continue to be met even during a medical hardship. Additionally, many of these types of plans are completely employee funded so employers incur no additional cost for the program.
Dental and Vision
Standard health insurance rarely offers any type of coverage for dental or vision. For your employees with families and small children, these types of policies can help offer a tangible savings in overall health expenses. While the costs of many of these programs are often shared between the employee and the employer, the expense is more than paid back in employee satisfaction.
Flexible Spending Accounts
Flexible spending accounts allow employees to pay for medical expenses such as deductibles and co-pays with pre-tax dollars.
Providing excellent benefits without regularly communicating the value of these benefits to your employees is a missed opportunity. People are prone to take things for granted; and, those who don’t still often miss the big picture. The solution is to communicate the value of the total package you are providing each employee, using online solutions such as COMPackage. Such a solution is easy-to-use, inexpensive, and powerful in how it clearly and simply communicates the value of each employee’s overall package.
Employee Compensation Statements are growing in popularity with employees in large and small businesses. The statements give employers the ability to outline, in one clear document, each employee’s complete financial and non-wage compensation. Here are five key benefits of an Employee Compensation Statement.
Employees who are content in their jobs – come to work ready to go, know their job and feel that they contribute to their company’s success – are employees engaged with their company. Engaged employees are likely to give more at work and show more loyalty toward their employers.
Personalized Employee Compensation Statements furthers employee engagement by boosting employees’ morale. Compensation statements can serve as a reminder to employees that they are more than just a paycheck. Seeing a total list of benefits that includes work-life-balance through flex time or day care, for example, can help to make going to work each day more fulfilling.
When employee engagement and morale is low, retention becomes the number one problem for an employer. Companies that have high engagement report less absenteeism and importantly less employee turnover. A 2015 survey notes that 56% of employees believe that perks matter and are key factor in deciding to stay put in their job.
Employee Compensation Statements are a visual guide to those perks, giving employees a clear picture of how invested their company is in their success. All employee benefits, including performance rewards, mean that employees have something other than just their salary as a measure of their worth to their company. For those employees who have their compensation statement, they are less likely to ask for salary increases or importantly to look outside of their company to get a bigger salary.
Just as the statements assist employers and employees with retention, it can be invaluable tool in recruiting top performers. Fully 25.2% of employees looking for work state that benefits are very important factors in considering a company’s job offer. Compensation statements tell potential employees exactly what they can expect from the first day and well into the future.
In an easy-to-read statement, employers use compensation statements to give a potential employee a roadmap to the future. From performance reviews to bonus structures, compensation statements tell employees what they earn and can earn in real time.
Compensation statements can be a useful tool for outlining performance expectations for employees. Improving employee performance is easier with a compensation statement because employees work harder and smarter when visual performance markers are spelled out. The statements can be accessible all year around, giving employees quick access and a constant reminder of what they mean to the company.
And, importantly, Employee Compensation Statements are an excellent avenue of communication between employer and employee, which also enhances employee performance. Compensation statements are living documents so they can be revisited at performance reviews to show continuous investment in employee well-being.
Many gracious employers wonder, “Don’t employees understand all that I’m doing for them?” The truth is that without a simple, summarizing annual total compensation statement, many benefits go unnoticed or forgotten about. Take for instance, education benefits, or your 401(k) match. Oftentimes it’s provided and not used, many times because the employee just wasn’t thinking about this benefit and how it improves their life. If they knew, many more would take advantage of it – benefiting both the employer and the employee.