How to Help Employees Understand the True Value of Their Compensation

Did you know that, according to a survey conducted by Harvard Business Review, 9 out of 10 employees said they would be willing to trade a percentage of their lifetime earnings to do more meaningful work?

For many people today, it’s more important to do work that engages them, that has meaning, that provides a greater work-life balance, and that ultimately supports their lifestyle.

When negotiating a job, or when asked about their current compensation, it’s common for people to talk only about salary. Unfortunately, this means that they’re missing out on a huge portion of their actual compensation, overlooking benefits, insurance, pension, and other add-ons.

Knowing Your True Worth

Benify surveyed over 20,000 employees and HR leaders across a number of industries for its Employee Happiness Index, collecting insights across a number of areas including benefits, rewards, personal finances, and employee engagement. The results revealed a clear correlation between benefits satisfaction and workplace engagement.

• 20% more satisfied with their benefits
• 19% more convinced their benefits are better than other workplaces
• 14% closer to their employer’s brand

The survey also revealed that a staggering 80% of employees underestimated their total compensation. Without the knowledge of their total compensation, this means that employees are missing out on a large portion of their compensation. As one Forbes article shares, benefits can play a significant role in the larger financial picture and explains how, for example, Google’s free breakfast, lunch, and dinner can add up to over $10k on top of an employee’s salary. 

Show Me the Money

In today’s competitive job market where companies are competing to attract and retain talent, companies must strive to provide an outstanding employee experience where employees feel appreciated and understood. So, how do employers do this? One of the ways is to make sure employees understand their full investment. This can be done providing employees with a clear visualization in the form of a Total Reward Statement.

In Benify’s award-winning global benefits and total rewards platform, employees are presented with an illustration showing the value of their employer’s total investment. An employee’s Total Reward Statement gives the individual a monetary breakdown of their salary, pension, insurances, and other benefits paid to them as part of their compensation, which is then presented as a graph providing a clear overview of the components adding up to their total compensation.

Any changes to an employee’s compensation, such as enrollment into new benefits, are updated in real-time. Since employees can access their Total Reward Statement through their benefits platform anytime, anywhere, via the Benify app, they’re always able to see their true value.

Making employees aware of their true value is just one of the tools which contribute to the employee experience. Want to learn more about the importance of employee experience? Download your free copy of Benify’s new eBook “The New Employee Experience: How to maximise and optimise every step of the employee journey” now!