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| Posted on: Wednesday, December 3, 2008 |
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In uncertain economic times, even the financially healthiest of organizations may be forced to freeze pay increases and hiring, and decrease bottom line expenses in order to conservatively guard against what the future may bring. One way to move the focus off of that bad news message is to emphasize the “hidden paycheck” employees are already receiving but are likely unaware of.
While most employees could tell you what their pay is, they may not know how much higher their total compensation is. The reality is that an organization invests far more than just wages into its employees. Those investments include paid time off, insurance coverage, flexible work schedules, transportation, special events, training and education opportunities, employment taxes, retirement contributions… and the list goes on and on. How could employees possibly know the value of these complex benefits?
Personalized total compensation statements are an effective way to communicate the rising cost of benefits and increase employees’ understanding and appreciation of the resources their employer invests in them, thereby improving job satisfaction. In addition, total compensation statements provide a competitive advantage in attracting quality employees by showcasing the dollar value of the “hidden paycheck” offered in comparison to other employers.
There are many vendors employers can partner with to produce total compensation statements and while cost is a factor, selecting an experienced vendor who understands an employer’s goals and objectives is equally important. First, evaluate their flexibility in statement customization and distribution medium, as well as their market niche to ensure that they can cater to the employer’s needs. Secondly, employers will want to request samples of their statements to review the look and feel of the finished product.
Preparing total compensation statements can be time consuming for an employer’s HR and Payroll staff. Actual time will vary depending on an employer’s Information System records. Many employers with good internal data find that they will invest 20-40 hours in this process, which typically takes 6 to 8 weeks from start to finish.
Depending upon the vendor selected and the number of employees in an organization, setup fees can range from $500 - $3,000 and per statement fees are generally $7 - $10, depending on the format and distribution medium. And for this reasonable investment, employees are much more likely to appreciate just how good they have it.
Should you have any additional employee benefit questions or would like to discuss this material in detail, please don’t hesitate to call the Denman Team. |
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