As of March 2018, the nationwide unemployment rate was at 4.1 percent. That’s a 17-year low that can be great for employees but a bit daunting for employers. In addition, more than 10,000 Baby Boomers (who likely hold the deepest knowledge in your organization) are retiring every day. Long story, short: The war for talent is on.
While there are many strategies to employ in your recruiting and retention efforts, one of the most important is your benefits program. According to a recent Glassdoor survey, 60% of people report that benefits and perks are a major factor in considering whether to accept a job offer, and 80% of employees would choose additional benefits over a pay raise.
The key is to make sure you are fully communicating the TOTAL benefits package. It’s far too common that employees don’t truly understand all of the benefits that their employers are paying for. That’s why total compensation statements continue to be both popular and necessary.
What is a total compensation statement?
A total compensation statement is a breakdown of every benefit that you provide your employees, along with its cost. It’s an easy and effective way to ensure your employees are fully educated on the thousands of dollars you are spending outside of just their normal compensation.
But it’s not just about the total dollar spend, it also shows you care! Your involvement in their lives doesn’t start and end at the office – the benefits you are providing employees impacts their lives, and the lives of their families, on a daily basis.
So what needs to be considered in building out your total compensation statement:
- It’s more than just pay and healthcare. Think big picture of all the different types of benefits you offer and how you can include that in your total compensation statement. For example, wellness programs, vehicle perks, retirement offerings (to name a few) need to be included.
- Provide easy access to the information. While printed statements are still an important avenue for communication, you need to have an online version for ease of access. This allows your employee to see this valuable, important information anytime and not just once a year.
- Make sure it’s branded for you! Customize your total comp statement with your branding and messaging to really drive home the wealth of benefits you are providing.
Total compensation statements are a great way of communicating your whole benefits package to your workforce. And in today’s climate, that’s never been more important.
At Businessolver, we can create total compensation statements as well as an easy-to-use online widget that makes it simple for employees to view their total rewards year-round. Interested in learning more?