How Communicating Employees’ Hidden Paycheck Could Help Set You Apart
As employers move toward restoring stability and learning to function post pandemic, employee attraction, engagement, and retention are more critical than ever to an organization’s success. This is precisely why there is a renewed interest in making sure employees understand and appreciate the true value of how their organization invests in them. One of the most powerful ways to convey this is through personalized Total Rewards statements.
Historically, personalized statements were limited to sharing forms of direct compensation an employee received— such as base pay, incentive pay, overtime, and bonuses. More recently, however, employers have recognized there are many other benefits and rewards employees don’t realize they are receiving.
Total Reward Statements communicate the overall value of an employee’s total compensation package, by going beyond direct compensation to including indirect compensation, benefits, and other rewards. All components are given a monetary value (typically the employer’s investment) to show the employee the true value of their employment package. This additional value is often referred to as the employees’ hidden paycheck.
A growing number of employers are turning to Total Reward statements for the following reasons:
Whether your challenge is employee retention or attracting talented job candidates for hard-to-fill positions, the level of personalization in Total Reward Statements may be the competitive advantage you need – making a significant impact on how your company is portrayed in the minds of today’s workforce.
This article is for educational purposes only. The tax and legal references attached herein are designed to provide accurate and authoritative information with regard to the subject matter covered and are provided with the understanding that LoVasco Consulting Group is not engaged in rendering tax or legal services. If tax or legal advice is required, you should consult your accountant or attorney. LoVasco Consulting Group does not replace those advisors.
Securities and Investment Advisory Services offered through M Holdings Securities, Inc., a registered broker dealer and Investment Advisor, member FINRA / SIPC. LoVasco Consulting Group is independently owned and operated.
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