Total Compensation Statements: Are You Touting this Powerful Retention Tool? THE WORKFORCE HAS CHANGED.
overwhelming. Although the
numberswereincludedon Bynow,mostemployersknowthatretainingexisting theworker’spaystub,allthe employees and attracting new ones is far different from
employee noticed was the net pre-pandemictimes.Theavailablelaborpoolhasamount diminished of pay they were andfillingopeningshasbecomeahamster-on-the-wheel receiving. My direct reports exercise–lotsofworkbutgoingnowhere.Theresult? were amazed at how much Withoutafullstaff,companiesmustturndownnew business, the company paid overall -
Robin Seidman specializes in general HR policy and procedures. reseidman@ccahv.com
customerservicesuffersandprofitabilitytakes anosedive. not justinsalary.Employees There is one powerful tool that many employers fail
feltvalued.Moralewasboostedandmostemployees
becamemoreengaged.Itwasawin-winforthecompanyand to tout:The value of employer-provided benefits to a the employee. worker’s total compensation.
Therearepotentialissues.Forone,employeesmightsha Mostbusinessownersofferarobustbenefitspackage:Health, informationwithotheremployeesandifthereareine visionanddentalinsuranceavailabletotheemployeeand theemployermustbepreparedtoaddressthedifferen family,paidvacations,paidsicktime,personaltimeand Bytheway,youcanaskyouremployeesnottosharethe retirementplansarethemostcommoninclusions.Withthe informationwithothersbutyoucan’tstopthemfromd companypayingpartofthehealthbenefitcost,theremaining so. Nor can you retaliate if they do. premiumismuchmoreaffordablefortheemployee.And
whiletheownerscanprobablytellyoutothedollar how Someemployees mightnottrustthatthenumbersaret muchtheypaytowardthesebenefits,theworkforce isis why precision and accuracy are essential in preparing That generally clueless.
the statement. One mistake and the employee will lose all
confidenceintheinformationthecompanyprovides. That’swhereanannualTotalCompensationStatementcomes in. A Total Compensation Statement is a communication
Manypayrollproviderswillpreparethestatements.Fo
that is tailored to each individual employee. It shows how
companiesthatdon’tuseaprovider,simplysearchthe
much the company pays annually in total salary and paid time
internet for Total Compensation Statements and you will offforthatemployeealongwithwhatitpaystoward taxes, not onlygetdetailedinformationbutalsotemplate
worker’scompensation,health,visionanddental benefits, totheorganization’sneeds.Aswithanypay betailored
shortandlong-termdisabilityandanyretirement benefits issue, itmakessenseforanemployertoruntheideapas suchasmatchingK104 contributions.Itcouldinclude CPAorlegalcounsel. commissionsorbonuses.Byputtingadollarnumbernext Losing and replacing employees equals recruiting and toeachoftheseitems,theemployeegenerallyhas an“aha”
training costs as well as disruption to the work environment. moment–especiallywhentheyseethebottomline amount Employeeengagementandloyaltytranslatestohigher of total compensation. It is an eye opener for sure and may
productivity,bettercustomerserviceandahappywor giveanemployeemoretothinkaboutiftheyareconsidering changingjobsorleavingtheworkforceentirely. All companies can use a competitive edge especially when
it comes to attracting and maintaining their workforce. The IknowfrompersonalexperiencethataTotalCompensation Statementworks.WhenmyformeremployerissuedaTotalCompensationStatementmightbethetooltha your employees statementtoallemployeesafewyearsago,theresponse wasengaged and loyal. 32
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