Many employees are unaware of the extent of their employer’s investment in them.
It’s easy to focus solely on the paycheck, but employee benefits often go well beyond pay. In this article, we’ll highlight some benefits your employees may not be aware of, and explain how a total compensation statement can help.
6 often-overlooked perks
1. Health insurance
This is often the most expensive benefit for employers. In fact, for many organizations, the cost of providing employee health insurance is the second-highest expense after salaries.
2. Retirement contributions
Many companies offer 401(k) or other retirement plans, and often match a percentage of the employee-contributed funds. This is free money that adds tremendous value to employees’ retirement savings.
3. Bonuses and profit sharing
Some companies offer bonuses, stock options or profit-sharing plans. When the company succeeds, employees benefit too.
4. Training and development
Employers often invest in career development for their staff through training programs or tuition reimbursement. Many employees overlook this investment.
5. Paid time off
Employees might take their paid vacation and sick days for granted, but these are expensive benefits. Often, employees don’t think of these days in dollar terms until they separate from their employer and cash out.
6. Additional benefits
Depending on the job, benefits might also include life insurance, disability coverage, parental leave, commuting support, wellness programs or other perks. Many voluntary benefits (like pet insurance) are available to employees at rates far below what they would pay as individuals on the open market.
What can you do?
Obviously, a heavy-handed announcement that employees are taking you for granted will not be well-received! Instead, consider issuing a total compensation statement.
A total compensation statement comprehensively summarizes all the direct and indirect benefits you provide to employees. Total compensation statements inform employees about the overall value of working for you, beyond their salary. These statements can even improve loyalty, satisfaction and retention.
Not sure where to start with your total compensation statement? Reach out to our Employee Benefits team and we’ll be happy to help.
This content is for informational purposes only and not for the purpose of providing professional, financial, medical or legal advice. You should contact your licensed professional to obtain advice with respect to any particular issue or problem. Please refer to your policy contract for any specific information or questions on applicability of coverage.
Please note coverage can not be bound or a claim reported without written acknowledgment from a OneGroup Representative.
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