Source: The Globe and Mail
In an atmosphere where some companies are offering unlimited vacation time and amazing perks, small businesses may feel the pressure to compete for attention to find and retain employees, Chris Gory writes in an article for The Globe and Mail. It’s important for businesses to show current employees how much their work is appreciated, while also attracting new talent. Both tasks can be accomplished by breaking down what the company invests in its employees in a total compensation statement.
A total compensation statement includes:
- Salary or hourly pay
- Value of insurance and benefits
- Vacation/sick pay
- Investments in education or growth
- Stock options
- Retirement contributions
- Wellness programs, like a gym membership
Gory writes that a total compensation statement offers a bigger picture look in terms of the dollar amount the company is investing in an employee and illustrates the company’s care for their life outside the business.
It’s important to offer current and prospective employees both the big picture number, but also delve into the details for each point of the compensation statement. That being said, Gory warns that employers shouldn’t over inflate numbers that aren’t applicable to a specific employee, like a transit subsidy for employees who live down the block. This can create the perception that you’re trying to fool an employee into thinking they’re getting more than they actually are.
The final, and most important part of the statement, Gory writes, is keeping it up to date. He recommend issuing a report each year illustrating how the statement may have changed and reinforcing that the company’s compensation plan goes above and beyond the salary.