Posted in:Total Rewards
In a world where more people are living pay cheque to pay cheque, it is common to see employers and employees alike place significant focus on base salary during the recruitment process, often to the detriment of other components of the total rewards package which may hold a higher monetary value.
While base salary is, of course, very important to employers and employees, it is crucial to help employees (and prospective employees) understand all components of their total rewards packages, and the value that lies therein.
In addition to base salary, key components of Total Rewards packages may include some or all of the following:
• Short-Term Incentives – This may include different types of bonuses to recognize the achievement of performance expectations or operational targets.
• Long-Term Incentives – This may include stocks, bonds, or options. Some employers may also offer group savings plans to help employees’ build their retirement nest eggs.
• Benefits Packages – This often includes life insurance, health insurance, dental insurance and disability coverage.
• Perks – This may include free parking, transportation subsidies, childcare subsidies, flexible work arrangements, team lunches, training opportunities, travel assignments, or sabbaticals.
Sharing the Message
Employees often fail to understand the monetary value of non-cash components within their total compensation package. It can be beneficial for employers to prepare a Total Compensation Statement that assigns a dollar value each element.
It can also be useful for employers to consider employee demographics when preparing a Total Compensation Statement. Depending on their needs and stage in life, employees will place more value in different components of their package. For example, an older employee may find more value in an RRSP matching program than a younger employee, who may be relying on cash bonuses to meet financial goals.
Finally, it is important to regularly communicate the value of their total rewards package to current employees – not just during the recruitment process. If your organization offers benefits such as an employee fitness program, for example, regularly reminding your employees of this can help them see the value in their total compensation package and encourage them to tap into the full value of their rewards package that is being offered to them.
Your Honiva HR Services Consultant can help you craft the right messaging to ensure your new recruits and long-term employees understand the full compensation story includes so much more than the dollar figure that is their base salary.
Here to Help
We can be reached for a free confidential consultation at +1-403-470-5350 or [email protected] For further details on additional HR service offerings, please visit our website at https://www.honiva.com or follow along for more informative tips by joining us on LinkedIn, Facebook, Twitter, or Instagram. We also run a complementary LinkedIn and Facebook group called “Insights by HonivaHR” where you can access free information on how to become an effective and legally compliant employer. Or you can sign-up for our quarterly newsletter to have help sent straight to your inbox from our company homepage.