What You Did Not Know About Total Compensation Statements
Total Compensation Statements are increasingly popular among employers as a way to boost company morale and retain top performers. Providing the total value of their employment will help you quiet the noise that comes with employees that look too closely at the paycheck, and only the net portion, at that!
Few people are aware of the true power and value of giving your employees compensation statements. They create a useful log of the investments a company makes in its employees. This allows workers to see what they receive above and beyond the salary that they see. Employees are, most typically, happier and work harder if they understand all that their company invests in them.
Having an understanding of the value of the benefits employees receive is equally important to employee retention. A worker who can see all of his or her benefits in one place is less likely to feel unsatisfied with his or her salary. This leads to fewer requests for large salary increases and fewer employees looking outside the company for a bigger salary separate from their total compensation.
Deliver the Report by Manager to Employee
As useful as a compensation statement may be, not all of them are intuitive to read. Benefits will be better understood, and appreciated, if they are presented clearly, and with good graphics. If reader find absorbing the details difficult, they may forego reading the total compensation statements altogether, wasting your efforts to communicate the full package they receive. You should invest in reports that are easy to read. Moreover, to make sure employees both actually read the reports and understand them, I highly recommend having managers present these reports personally. Leadership should never miss an opportunity to communicate with the people they employ.
Recruiting Efforts Benefit
Compensation Statements can help to close new recruits who might be considering offers from other companies. With compensation reporting solutions like COMPackage, you can actually show a potential new hire the full value of what he or she stands to earn with your company in real time, since it takes less than 6 minutes to prepare a single statement. Most employers who spend the money on generous benefits neglect to communicate how valuable their offer really is.
When I ran an advertising agency with over 100 employees, we were gracious employers, but had no good way to communicate it effectively. This was years before we developed COMPackage. There were solutions available, but they were expensive and required purchasing consulting and high priced handling to implement. COMPackage was built to be the easiest solution to buy, the easiest to prepare and the easiest to read!
A Total Compensation Statement Is Not a Legal Document
While Total Compensation Statements seem very official (and you should treat them with the care you would treat an official document), they are not true legal documents. They have no ties to government requirements and they are not used for tax purposes. The statements are simply used to display to your employees and recruits the total value of what you offer to them.
There are very reasonably priced solutions available, like industry leading COMPackage, where total compensation reports can be produced for as little as $10-$20 per employee depending on the number of employees and length of your contract. When I entered into this business and pioneered the self-service Total Compensation Statement solution, the costs of the alternatives were in the thousands of dollars per implementation, and that was for small companies – much more for large ones. I’m very proud that we’re still one of the lowest cost and easiest to use solutions available. I’m even prouder that our customer support is second to none.
Total Compensation Statements don’t have to be difficult. A professional program can help you deliver the goods for all your employees quickly and easily.