By Jessica Foust
Paychecks pay mortgages, buy food and make vacations possible. So it’s easy for employees just to focus on their net pay and forget about everything else that is part of their compensation. That’s where employers should step in and promote the true value of their compensation packages. And total compensation statements are a great way to showcase the value your company offers.
We recently put on a webinar detailing the ins and outs of total compensation statement. I’ve outline some of what we covered below and you can listen to the webinar in all its glory and request a discover session here.
What is it?
A total compensation statement is a personalized document that showcases the overall value of an employee’s financial rewards. These financial rewards could include items like base pay, indirect compensation and less tangible benefits like a flexible work arrangement.
You will want to provide information on any benefits that set your company apart from other companies or benefits that reinforce your brand. Total compensation statements typically include:
- Compensation information
- Insurance benefits
- Leave benefits
- Financial and retirement elements
- Additional benefits
Total compensation statements present an important opportunity for HR teams to attract, motivate and retain employees by showcasing the value of benefits. In addition to keeping employees updated on all of their current compensation and benefits, they also strengthen the bond between employer and employee. Organizations who distribute total compensation statements typically see a boost in morale, motivation and productivity in their employees. Pretty great results, for a simple statement.
Total compensation statements are as much about actual benefits as they are about what the employee believes the company provides. So in order to ensure your statements will be well received, you will want to create statements that stand out in order to ensure employees open and read them.
Tips to make your statements stand out:
1 – Make it visual
We all know that it’s more fun to look at a picture or watch a video than it is to read plain text. Why is that? Our brains do less work to digest visual content. And more importantly, visual content drives more engagement than plain text does. In fact: 90% of information transmitted to the brain is visual and visuals are processed 60,000 times faster in the brain than text. So design a statement that includes all the data points that are important, but do it in a way that flows well visually and make it easy to read.
2 – Deliver Statements with a Wow Factor
You have a lot of options for formatting a statement. No matter how you design it, you need employees to actually see the statement. So think about how to alert employees that they will be getting a statement. Sprinkle in some personality and fun into your communication plan to reinforce the fact that a job with your company is so much more than a paycheck!
3 – Make it Personal
A total compensation statement should be all about the employee. The more personalized a statement is, the more it will resonate with an employee. For example, you could insert personalized messages for specific employees or groups that will resonate with those particular individuals. So put the employee first and tell your company’s story with pride, like why it’s a great place to work and why they will want to work there for years to come.
Total compensation statements give companies a chance to tout all the benefits programs they provide that many employees may not even be aware of. They provide the opportunity to show your employees how much you actually spend on them, as well as a vehicle to explain the more intangible but still important benefits you offer. It’s a great investment that really will boost morale and motivate your employees.