News & Media

HR Hot Topics: Communicating TOTAL Compensation to Employees

Tuesday, June 14, 2022
This month’s HR Hot Topics describes the value of using total compensation statements to give employees the full picture when it comes to their pay package. Often employees are only aware of the direct compensation they receive in the form of W-2 wages and use this number when evaluating the competitiveness of their current pay. However, employers enhance hourly/salary rates with indirect compensation as well, like paid time off, uniform allowances, health and wellness benefits, etc. Unfortunately, the value of these benefits is rarely communicated. In a labor market this tight, failing to provide current and potential employees with the dollar value of their TOTAL compensation (direct + indirect pay) is a missed opportunity.