A total compensation statement is a form companies can fill out to show workers how much their employer is investing in them monetarily. Since most pay and benefits extend beyond an employee's base salary, these documents break down every mandatory and voluntary offering a business gives and organizes them into a single record. Let's take a closer look at this practice:
A means of clarification for employees
Sometimes, workers can hear about the benefits they receive when they sign their contracts and then never learn more about these offerings again. Total compensation statements are a way for companies and their HR teams to not only notify employees of these perks, but provide a detailed account and understanding of these complex topics.
"Total compensation statements provide employees with further understanding of their benefits."
These documents can seem overwhelming to workers who aren't used to frequent news about their benefits. HR staff should aim to make total compensation statements meaningful to employees by focusing on retention, instead of recruitment, Payscale suggested. Companies know these records can be used to attract new people to the enterprise, but businesses should direct their attention to using these forms to keep valuable workers on board. HR teams should personalize each statement, including more well-known benefits first – dental, vision, medical and life – then add information on supplemental offerings, finishing the document by listing the unique perks the employer offers.
Benefits for HR teams
While total compensation statements have many advantages for employees, these documents are beneficial to businesses and their HR leaders. The records show the monetary investment employers are making in their workers, according to HR Daily Advisor. Total compensation statements can also help employees compare their companies to others. By detailing not only salary, but additional benefits and perks being offered, businesses can entice valuable workers to stay with the enterprise for a longer period of time. These records can make an employer seem more attractive than a competing offer.
Total compensation statements are a smart way for companies to show employees how much their hard work and dedication means to the overall business. By breaking down benefits, unique perks and base salary, HR teams can improve their recruitment and retention efforts. While these records are beneficial to both employees and employers, it's crucial for enterprises to talk about the elements included in these documents more frequently. HR staff should distribute information on these offerings using a variety of mediums, more than once a year so all workers are truly aware of what their employment contract is providing for them.