If you are a growing company trying to offer the best possible incentives for your employees, then a well-rounded benefit plan is at the top of your priority. A total compensation strategy takes into account more than just base salaries and healthcare benefits; it includes a full range of extrinsic benefits like retirement plans, wellness, paid time off, and bonuses.
A March 2010 report from the US Bureau of Labor and Statistics stated that over 30 percent of each employees pay actually comes from job related benefits. For laborers, that number skyrockets to almost 45 percent. With many employees not only struggling to make ends meet, but searching for better jobs, it makes sense that a total compensation statement can provide an incentive to remain loyal to your company.
To implement a total compensation strategy, it’s important to compile a detailed list of all the benefits that your employees currently receive. This can range from financial to intangible rewards. Make sure that all employees benefit in some way and do not exclude certain benefits that may be perceived as worthless. For example, a discount for a fitness center may be very valuable to an employee trying to lose weight.
Next, try to come up with benefits that fall outside of financial expectations of employees. Certain workplace benefits like flextime, training programs, earned time off for volunteer service, or corporate sponsored lunches should not be dismissed. One never knows the impact that these benefits can have on the quality of an employee’s lifestyle and career goals.
Consider the advantages of using this data to create total compensation statements that are a black and white representation of your benefits. When an employee can see all their benefits in one place, with certain dollar amounts as compared to their salary, it can compel them to stay on board and work harder for your company’s benefit.
There are many reasons why a total compensation campaign can benefit your company. It all comes down to how well you communicate this to your employees in the long run.