Pay: The numbers workers don't see could hurt you
When employees only think of salary in terms of that number on their checks, it can really hurt your company.
If employees don’t understand the total compensation they’re receiving it can lead to morale problems and may eventually lead to turnover.
Here are two best practices to make sure employees see the true value of their take-home pay:
1. Show them the details. Distributing total compensation statements on a yearly basis is a proven value to show staffers’ their true take-home pay.
But be careful: Generic total comp statements that do little more than show a single figure about how much your firm pays in terms of salary and benefits, probably aren’t worth the effort.
Whether it’s the cost of additional training to bonus potential to vacation/sick days, this statement should include everything your company offers with a dollar value. Itemizing everything your firm offers shows staffers not only what they are already receiving, but also what else they’re eligible for.
2. Gauge their understanding. There are probably a number of benefits many staffers know little about – and that’s were increased communication is needed.
One way: Have HR put together a test or survey to gauge employees’ understanding of all benefits – and distribute it to a small section of workers. If you notice an area where people are unclear, that’s where you’ll want to ramp up communications.
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