Raising appreciation of workers’ total compensation package

What is a Benefit Statement?

Benefit statement – a document showing an employee’s total compensation, including all cash income and the value of all benefits.
Do employees know the true value of their benefit packages? Most don’t.

Benefit statements can help employees understand their benefits better and can help employers get more recognition for one of their biggest investments. A solid benefit package is a plus – but only if employees know and understand what their employer makes available to them.

How Do You Use a Total Compensation and Employee Benefit Statement?
Using Benefit Communications to Attract and Retain Highly Skilled Employees

Successful companies understand the power of benefits to attract and retain engaged employees. According to 2013 study conducted by the Society for Human Resource Management, organizations leveraged their benefit offerings in Health Care (79%), Retirement Plans (76%) and Flexible Work Benefits (71%) to recruit workers.

Similar statistics were cited for retaining and motivating current employees. In a study conducted by Towers Watson in 2014, retirement programs promoted employee engagement by 56% and long-term career retention by 60%. Benefit plans constitute a significant element of a total compensation package, as much as salary or other aspects of the job.

Benefits are not just for full time employees. By 2020, some have predicted that up to 50% of employees will be hired on a part-time, per project basis. Under a voluntary benefit program, the employer offers part-time workers a menu of benefits; employees only pay for the ones they want, usually paying 100 percent of the premiums. Providing access to voluntary benefits can ease part-time workers’ financial stress, reduce turnover and differentiate employers from competitors in the talent market.

Communicating Benefits is critical to the success of the employee attraction and retention effort. Human Capital Management (HCM) Systems like Sage People, InfinityHR and others are responsible for gathering and managing the data related to employees and benefit administration. HCMs are the natural tool for creating and disseminating Total Compensation Statements. In a Total Compensation Statement, graphics and other eye-catching aspects are used to draw the employee’s attention to

• What benefits do they have?
• What other benefits are offered?
• How much does the company contribute to the employee’s benefit package?
• What percent of an employee’s compensation is represented by benefits?

This ‘hidden paycheck’ can be a powerful tool to reinforce the organization’s commitment to their employees and keep employees engaged and productive on behalf of the company. For more information on creating Total Compensation Statements please sign up for our free webinar:

Informational Webinar:
Creating Compensation and Benefit Statements with Crystal (Hidden Paycheck)
Register Here | October 17th | 1:00 – 2:00 PM ET