The Value of Benefit Statements

Nathan knows that his employees appreciate the benefits package his small business offers, but he wants to make them aware that it's also a part of their compensation.

Informing employees about their "hidden" compensation will help make them aware of the costs involved. Nathan may want to prepare a company-wide benefit statement showing how much he spends on paid leave, health insurance, and contributions to a retirement plan, as well as other insurance premiums and benefits (including the legally required ones: Social Security, Medicare, workers' compensation, and unemployment insurance). His employees will have a better idea of just how much he spends on benefits.

A public review also gives Nathan an opportunity to make sure his employees know what benefits are available to them. In turn, his employees may be able to give him some feedback on which benefits they need and use and which ones they don't.

If Nathan has to call upon his employees to pay a greater portion of their benefit costs, they may be more sympathetic if he explains why he has made that decision. Presenting his employees with cost comparisons for a number of years may help them see the big picture. It's also important that Nathan highlight the costs he still plans to cover.

Benefits are an integral part of employee compensation. Showing how much you provide in the way of benefits could help you both retain and attract employees.

Client Profile is based on a hypothetical situation. The solutions we discuss may or may not be appropriate for you.

_{Client Profile is based on a hypothetical situation. The solutions we discuss may or may not be appropriate for you.}