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Five Reasons You Need a Total Compensation Statement

Total Compensation StatementWith the unemployment rate in the U.S. hovering around 4%, employers are dealing with two difficult challenges – attracting new employees and retaining the ones they already have. Workers are in the best position they have been in for several years; employers need to step up their game in order to remain competitive.

Whether you’re concerned with recruitment, retention, or both, total compensation statements should be a key part of your toolkit. Why do we think total compensation statements are so important? Here are our top five reasons:

  1. Employees don’t value what they don’t know  Employees consistently undervalue their total rewards package. Total compensation statements clearly show employees the true level of the employer’s investment.
  2. Increase the ROI of compensation and benefits — By laying out the full details of each employee’s total rewards package, a total compensation statement increases the odds that the benefits and compensation you provide to employees will be effective in driving employee satisfaction and engagement.
  3. Increase employee retention — Employee turnover is expensive. According to one recent survey, almost half of workers agreed that a well-communicated total compensation program would make them less likely to leave their current employer.
  4. Reinforce the employee value proposition — Total compensation statements are a cost-effective way to make sure that employees understand the many advantages of committing to your organization.
  5. Build your employer brand – Total rewards communications help reinforce other communications and initiatives that, taken together, increase the value of your employer brand.

We would love to create a total compensation statement for your organization’s employees. Be in touch and let’s start the conversation.