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As an employer, you make a sizable investment in your employees. While direct pay is a big part of the equation, employers nationwide spend an average of 40% of their compensation budget on benefits. Yet employees are often unaware of how much their benefits cost. In an era where recruiting and retaining good employees is growing more challenging, making your employees aware of every dollar you invest in them can help position you as an employer of choice. For example, who hasn't had an employee leave for another job, with more money as the reason? Often, when employees compare pay, they don't take benefits into consideration. Yet, you may offer a richer health plan, or more vacation time, or intangible perks like developmental training. These benefits are easy to overlook when employees are unaware of their worth. Communicating with your employees about their "total compensation" or "total rewards" can help your employees understand and appreciate the money you invest in their benefits, as well as their pay. According to a survey by employee benefits consultant Watson Wyatt, companies that communicate most effectively with their employees report lower or significantly lower turnover rates than their industry peers. What's more, studies by Aon Consulting show that benefits communication influences employee commitment more than the benefits themselves. Discussing employees' compensation in an aggregate way, including all their benefits, can have other advantages, as well:
Total compensation statements, which provide a personalized overview of pay plus benefits compensation for each employee, are a very effective way to show your employees the value of their total rewards package. Personalized communication is compelling, too. Employees who receive personalized total compensation statements regularly say that those statements are their favorite employer communications throughout the year. One of the many enhancements to the new My TotalSource Human Resources Management System launching this summer is the addition of employee total compensation statements. You will have options to provide access to all employees, limit access to only your company administrator, or elect not to activate the feature. Employees would simply logon to My TotalSource at www.adptotalsource.com, click the HR button in the top navigation bar, then select Total Compensation from the left navigation bar. If you prefer to limit access to only your company administrator, the administrator would access and print employees’ total compensation statements via My TotalSource and distribute to employees as needed. Consider talking to your employees about their total compensation package. If you keep the concepts simple and reinforce them by talking openly about your benefits throughout the year, your employees will have a greater understanding of their total rewards, and your company will likely see greater appreciation and commitment from your employees. For more information on the My TotalSource HRMS Total Compensation Statement or to enable this feature of My TotalSource, please contact your Human Resource Business Partner. Sources: |
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