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A look at employment trends by Forbes reinforces what HR professionals already know:
- Companies with engaged employees are more profitable (about 21% more, in fact)
- Turnover is costly—in time, money, performance and morale—and it's on the rise
There are many steps a company can take to retain good talent. Perhaps one of the easiest is simply letting employees know how much you invest in them.
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Total compensation statements
reinforce value year after year |
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New hires are often given a clear breakdown of salary and other compensation to lay out the full value of their package and perks.
But what about down the road? Total compensation averages about 20% higher than base salaries—for some industries and roles, it's far higher. It's important for employees to be reminded of that value as they progress through the organization.
Many forward-looking companies do this by providing employees with total compensation or total reward statements each year. (We've attached a sample to give you an idea.)
Your total compensation statements might include:
- Base pay, commissions and bonuses
- Retirement account matches
- Paid time off
- Health insurance premiums
- Disability, life insurance, family leave
- Social Security and Medicare contributions
- Tuition reimbursement or training
- Fitness memberships, counseling or wellness programs
At a time when employees demand greater transparency, total compensation statements give them a clear view of their value beyond what they see on a paycheck. What's more, reviewing total compensation can help HR identify potential gaps to be addressed.
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Are total compensation
statements right for your company? |
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There's unlikely to be any downside to quantifying your investment for your employees. And you already have the data required. It comes down to the best way to execute.
You could calculate and produce individual statements manually. However, this is an easy win for technology.
Creative Workforce Solutions worked with our partner, CWS Software, to automate the process. TotalComp lets you customize templates and data, then generates individual employee statements. You can include graphics and even a note from leadership to maximize the impact. Once you've set up the system, you can quickly generate new statements each year.
Be sure to click this link to look at the sample—and if you'd like to explore total compensation statements for your company, please let us know! |
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