(originally published March 2, 2021. Updated for content)
Did you know that over 80% of the workforce doesn’t feel engaged at work? Studies have proven again and again that positive, engaged employees will stay with a company much longer than those whom are less engaged.
Actively Engaged Employees Regularly Do More Than They Are Asked To Do
In addition to having a longer tenure with your company, engaged employees also regularly do more than the bare minimum. Engaged employees:
- Have a 38% higher productivity rate
- Create 50% higher customer loyalty
- Deliver 27% higher profits
- Produce 50% higher sales
It just makes good sense to build more powerful employee engagement for your business. It’s one thing to tell employees that they are valued. It’s something else to show them. But how can you do this in ways that are tangible and meaningful to them?
Employee Satisfaction Increases With Total Compensation Transparency
When your employee comes to see that their total compensation benefits amount to much more than the number reflected on their paychecks, it positively affects your business in more ways than are completely tangible on your ledger. Employees that are given a detailed breakdown of their total compensation are likely to experience higher satisfaction in the workplace due to their higher-than-expected compensation. This can create a higher sense of self-worth, a higher sense of employer value provided, and can lead to a more productive and loyal employee.
But, what does total compensation mean?
Your employee’s total compensation package is:
- their base salary (how much they’re getting paid); plus
- the value of all the benefits you provide them
- retirement plan
- paid time off
- any bonuses or variable pay
- any additional industry or business specific perks
Your team may not realize that you are providing them with all these additional benefits or, they may not see the value of these included benefits.
Four Benefits of Communicating Your Total Compensation Package
Below, HSA Group has outlined four key potential benefits to your company of communicating complete transparency of your total compensation package.
- Retention: When your employees are fully aware what their total compensation includes, it lends itself to an increase in employee satisfaction. This consistently higher employee satisfaction will help reduce turnover. Showing your employees just how valuable their skills and time are to the company and its future will make them feel more appreciated and increase job satisfaction.
- Recruiting: Sway candidates to your business by offering many valuable benefits and perks beyond wage. Job seekers consider several defining factors when weighing job offers – arguably, the most important of which, is compensation. Providing a detailed compensation package can help you lure candidates on factors beyond base compensation. If you offer benefits over and above salary, promote them.
- Reviews: Total compensation can be especially motivating for employees when used during performance reviews. Use your total package to outline any raises and additional benefit costs that may be realized at review time.
- Year-end: Most employees don’t realize that they receive thousands of dollars in benefits on top of their salary. These additional benefits and perks can often approach as much as often in excess of 43% of base pay. Since many benefits and perks – such as paid time off, free meals, cell phone, free suburban parking, etc. – are often overlooked by employees throughout the year, communicating these perks at annual review time can be a motivating factor to start the next year off on the right foot.
Companies can prove how great they are to work for first by offering their employees benefits that add value to their health and financial lives and second by ensuring their employees are fully aware of the benefits they have access to. Employees should feel confident about their compensation. Clearly define and break down the cost of each benefit so your employees can easily compare employment at your business versus other companies. Being totally open about base salary and benefits from the get-go is the best way to build a great team.
Your Health and Wellness Insights If you’re curious how The HSA Group’s HSA and WSA health and wellness solutions can assist your business with employee engagement as part of your total compensation package, contact us today.