8 michigan MEDICINE® | Sept / Oct 2022 The Value of Using Total Compensation Statements By Jodi Schafer, SPHR, SHRM-SCP | HRM Services | www.WorkWithHRM.com Q:We are struggling in this jobmarket to not only attract employees, but retain the ones we have. Part of our challenge is that job candidates and current employees are expecting amuch higher salary than what we can pay. We provide a rich benefits package, but candidates and current employees are only thinking about salary. What can we do to help them see the whole picture of what we are offering? ASK HUMAN RESOURCES Unfortunately, the value of these benefits is rarely communicated with employees, which is why employees don’t often consider them when making decisions about whether to stay or go. 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. Therefore, you might consider creating total compensation statements, also known as total rewards statements, for each employee and prospective position. It’s not uncommon for employees to think only about the direct compensation they receive in the form of W-2 wages when evaluating the competitiveness of their current pay. However, as you indicate, employers often enhance hourly/ salary rates with indirect compensation as well, like paid time off, uniform allowances, health and wellness benefits, etc.
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