Though your benefits package may be quite substantial, your employees may not know it or may not understand some of the benefits you offer. Helping employees understand their total compensation can raise morale and may increase loyalty to your company. To assist your employees in fully comprehending their benefits package, consider providing a total compensation (benefit) statement.
Total compensation statements highlight the monetary value of your benefits package, including the perks that may be overshadowed by traditional benefits. These statements are not required, but providing them may increase employee morale and loyalty. Typical total compensation statements may include the following:
• Stock options
• Stock grants
• Employee stock purchase plan
• Retirement plan
• Social Security contributions
• 401(k) matching contributions
• Paid time off
• Coverages for health, life and disability
• Wellness rewards (discounts, cash bonuses, etc.)
Providing these statements increases employee awareness of how much the company spends on his or her benefits. Informing employees of the behind-the- scenes expenses that the company covers can increase retention rates and morale.
Another reason to provide total compensation requirements is that the health care reform requires employers to report the aggregate cost of employer-sponsored group health plan coverage on their employees’ W-2 Forms. For employers that file fewer than 250 W-2 Forms, this is currently optional. Providing total compensation statements may make providing this information at tax time easier.
Contact Ardent Solutions for more information on total compensation statements.
© 2016 Zywave, Inc. All rights reserved.