How Much Are You REALLY Paying Your Employees?
My children have always attended a parochial school. Like many schools, ours has been faced with increased operating costs and declining enrollment. Even though it’s an educational institution, I would argue that it’s still a business. And many businesses are faced with similar challenges: providing quality products or services in the face of escalating operating costs and flat or declining revenue.
This year, the school decided to disclose the contribution that the church congregation provides for every student. It was a smart – and long overdue – vehicle for communicating their financial investment in the students.
I’m the first to admit that I was surprised by the numbers. I knew the church funded a significant portion of the costs. But I didn’t know exactly how much, or how their contribution compared to my (increasing) tuition payments. It added perspective to my perception of the value of the education.
A Total Rewards Statement serves a similar purpose. A survey conducted by Harris Interactive and Charlton Consulting Group reported a correlation between employees’ understanding of and satisfaction with their total compensation.
We define total compensation to include all elements of the pay package provided to employees on an annual basis, including all forms of cash, benefits, services and in-kind payments.
Conceptually, employees understand that their employers contribute more than just base pay and cash incentives. I’m betting they don’t understand how much.
Some simple math (and a personalized, spiffy looking chart) reveals the surprising truth. It’s not unlike my monthly Visa statement, where seemingly insignificant charges for gasoline and the occasional trip to Panera (I can’t resist the soup) can add up to well… a lot!
There’s no singular best approach to producing Total Rewards Statements. But producing them is one of the best approaches you can take to communicate the full value of cash compensation and benefits.
Try out our sample Total Rewards Statement.
Authored by Sandy Turba
This year, the school decided to disclose the contribution that the church congregation provides for every student. It was a smart – and long overdue – vehicle for communicating their financial investment in the students.
I’m the first to admit that I was surprised by the numbers. I knew the church funded a significant portion of the costs. But I didn’t know exactly how much, or how their contribution compared to my (increasing) tuition payments. It added perspective to my perception of the value of the education.
A Total Rewards Statement serves a similar purpose. A survey conducted by Harris Interactive and Charlton Consulting Group reported a correlation between employees’ understanding of and satisfaction with their total compensation.
We define total compensation to include all elements of the pay package provided to employees on an annual basis, including all forms of cash, benefits, services and in-kind payments.
Conceptually, employees understand that their employers contribute more than just base pay and cash incentives. I’m betting they don’t understand how much.
Some simple math (and a personalized, spiffy looking chart) reveals the surprising truth. It’s not unlike my monthly Visa statement, where seemingly insignificant charges for gasoline and the occasional trip to Panera (I can’t resist the soup) can add up to well… a lot!
There’s no singular best approach to producing Total Rewards Statements. But producing them is one of the best approaches you can take to communicate the full value of cash compensation and benefits.
Try out our sample Total Rewards Statement.
Authored by Sandy Turba
Labels: Compensation, Total Compensation, Total Rewards, Total Rewards Statements
posted by Sandy Turba at
1:45 PM
0 Comments:
Post a Comment
Subscribe to Post Comments [Atom]
<< Home