11 Benefits to Consider Including in Your Employee Total Compensation Statements

by Joe Blattner

Research has proven that employees are more satisfied with their employer relationship if they receive an annual total compensation statement.

A Gartner study* found that companies that provide total compensation statements to their employees have a 50% lower turnover risk than companies that did not. The study also found that employees who received them were more likely to be engaged in their work and to feel that they were fairly compensated.
A study** by the Society for Human Resource Management (SHRM) found that total compensation statements can help to improve employee morale and satisfaction. The study found that employees who received them were more likely to say that they were satisfied with their overall compensation package and that they were more likely to recommend their company to others as a good place to work.

Many companies offer a significant number of benefits that never get communicated to their employees.

Here are 11 such benefits you may offer some or all of your employees but might not have considered including in your total compensation statements.

Free Parking. Include free parking in your employee benefit scheme if your company made the decision to reside in the suburbs where there is no cost for parking. Besides being an incentive for driving among employees who opt to drive to work, free parking makes commute a hassle-free experience since employees don’t have to worry about parking fees or parking spots.
All PTO. It will help to add Paid Time Off (PTO) including holidays, sick days, and vacation time in your total comp statements if your staff will access a designated period of paid days off. Many administrators often think that this time off is a part of an employee’s pay, but is it really any different than health insurance? You pay for it; why not ensure employees know it’s a benefit?
Access to Company Vehicles. A company car/truck gives employees a professional image. Moreover, the vehicle enhances the employee’s productivity, thanks to the availability of a reliable means of transport. Your employee benefit statements should have use of company car/truck since the vehicle will eliminate the employee’s need to purchase and maintain their own car, typically replacing or at least reducing the cost to maintain a second car in their household.
Company-paid Cell Phone. Your employee benefit statements should have company-paid cell phones, especially if your employees need one for their job, and the company pays for the phone’s associated costs like internet, voice, and text plans.
In-House Training. Employees can enhance their skills and competencies within the workplace, thanks to the company’s in-house trainers. Include in-house training in your employee benefit statements if your company has programs that help employees attain professional growth. Offering your employees free, in-house training will give them an opportunity to learn about important aspects of their work. Classes may also give them a chance to apply for other jobs within the workplace. Management training, for example, will prepare them to become a team leader or supervisor. And placing an equitable value on it is fair for a total compensation statement.
School Tuition Reimbursement. Many employees choose to further their education by returning to college and earning their degrees. If they are working toward a degree that will help them advance within their current job or move up toward a management position, school tuition reimbursement will allow them to earn their degree without placing a financial burden on their family. This can be a huge incentive for staff that want to grow; it’s especially of interest to millennials!
Out-of-Town Conferences. Exposure to industry best practices, motivation and engagement, professional development, and networking opportunities are some of the benefits employees gain from out-of-town conferences. Consequently, it will help to list out-of-town conferences in your employee benefit statements when your company will be paying for your employees’ expenses during the out-of-town conferences. Employees love to be on the receiving end of these valuable life opportunities.
Health and Wellness Benefits. Gym memberships, yoga classes, massage therapy, and corporate challenge athletic events will encourage your employee to live a healthier lifestyle. When employees make the choice to get healthy, their mental outlook and productivity levels improve. They are more excited to come to work and look forward to facing new challenges. Paying for these programs will make a lot of employees happier and benefit the company in the short and long run.
Health Savings Accounts. Health savings accounts (HSAs) are tax-deferred and provide extra benefits that support your health insurance. The money in the HSA can be used for healthcare purchases like bandages, wraps, vitamins, supplements, and over-the-counter medications that your family would normally pay for out of pocket. Both the employer and employee put money into the account which can be used at any time for these types of purchases.
Stock Options. If your company is inclined to provide stock options to your most valued employees , then show it on your total comp statement. An employee is more likely to be vested in a company if they feel as if they have a stake in what is going on. The shares they own will also provide dividends they can rely on for their future. Over time, it can grow into quite an investment.
Access to Employee-Paid Benefit Programs. Employers who offer access to employee-paid benefits that take advantage of discounted group rates (e.g., Aflac supplemental insurance) should highlight these. This would include things like offerings that allow company staff to enjoy discounts on gym memberships, dental care plans, and so on.

* The Impact of Total Rewards Communication on Employee Turnover Risk (2020)

** The Effects of Total Compensation Statements on Employee Morale and Satisfaction (2014)

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