As an employer, you want to take every step possible to make sure your staff feels understood and taken care of. Though your benefits package may be quite substantial, your employees may not know it or may not understand some of the benefits you offer. Here at Burnham Benefits, we know through client success that helping employees understand their total compensation can raise morale and may increase loyalty to your company – as they will see in-full all of the amazing benefits options provided. To assist your employees in fully comprehending their benefits package, consider providing a total compensation benefit statement.
This communication highlights the monetary value of your benefits package, including those perks that may be overshadowed by traditional benefits, to give an overall view of your benefits package.
A typical total compensation statement may include information about the following:
- Stock options
- Stock grants
- Employee stock purchase plan
- Retirement plan
- Social Security contributions
- 401(k) matching contributions
- Paid time off
- Coverages for health, life, and disability
- Wellness rewards (e.g., discounts and cash bonuses)
Benefits of Total Compensation Statements
- Increase employee awareness of their benefits and how much those benefits cost the company
- Provide a dollar amount for benefits that do not seem to have a tangible monetary value, such as dry cleaning services
- Promote the idea of total compensation, beyond just a paycheck
- Raise employee morale because they tangibly see the array of benefits being offered by their employer
- Higher retention rates by employees
- Reduce the workload for Human Resources professionals by eliminating the need to manually prepare, print and mail statements to each employee
- Show potential recruits their total calculated compensation on top of their base compensation to make your organization more competitive in the hiring process
Another reason to provide total compensation statements is that health care reform requires employers to report the aggregate cost of employer-sponsored group health plan coverage on their employees’ Forms W-2. For employers that file fewer than 250 Forms W-2, this is currently optional. Providing total compensation statements may make providing this information at tax time easier.
Employers must make an initial time commitment to gathering data and presenting it. There is usually a cost associated with compensation statements.
How can my company obtain total compensation statements?
Contact Burnham Benefits Insurance Services for assistance with your total compensation statements. We have a wide array of solutions for you to share with your employees.