Total compensation statements are by no means revolutionary. But these statements can be invaluable when employers are going through lean times.
Reason: Even when you can’t afford traditional raises, total comp statements show workers the company has bumped up what it’s contributing – in the form of healthcare benefits, vacation time or retirement funds.
But it’s critical for firm to present these statements the right way to staffers.
What you need
Total comp statements often fall flat when employers fail to do the following two things:
- Break down every comp element as a separate line item. Often, firms make the mistake one lumping certain items together under a main category such as health benefits. But every type of insurance – health, dental, vision, etc. – should get its own line item, so staffers could see exactly what they’re getting.
- Provide yearly comparisons. Chances are many of the items on a total comp statement went up from the previous year. So show employees just exactly how much. Example: 2013: $2,000 vs. 2012: $1,700.
Obviously total comp statements should include items like base pay, overtime, bonuses and benefits, but it’s important not to forget the less-traditional comp elements. Examples:
- retirement contributions
- tuition assistance
- employer-paid training, and
- non-cash comp (gifts, meals, etc.)
Finally, it’s important to make sure the total comp statements are issued separately from employees’ regular pay stubs.
That way they really stand out and get noticed by employees.