Total Compensation & Organizational Culture
Have you ever considered what your employee culture would say about your organization’s compensation package?
How you compensate your employees is a reflection of your culture, and these days, with it being such a struggle to hold on to good people, your total compensation plan ought to be a retention tool. Compensation plans, thankfully, can be a lot more creative than they used to be. Twenty-two years ago, when I was an HR Coordinator sitting down at my first benefits plan renewal, there were not many plan design options to choose from. This made it really difficult, for small to medium sized businesses in particular, to find a benefits plan that suited their values and was affordable. Back then employers had three decisions to make: how much to pay, what basics they wanted to pay for, and how much of the cost they wanted to pass onto their employees. It has taken a while, the insurance industry moves sloooowly, but employers have way more choice and flexibility today than they used to.
Good total compensation plans still involve spending money, yes, but now there are more options and there is more flexibility. When you know what your team perceives as valuable, it can become less about the dollars spent and more about what the dollars are spent on. As HR and benefits people we can help you with all these things – including communicating all of it to your people.
What IS total compensation? Total comp is all of the wages and any benefits an employee receives that could be monetized. Have a look – are you spending these extra dollars on things that are building your culture and retaining your talent? Below is what a typical total compensation plan might look like for an employee making a gross annual salary of $85,000. Note that it does not include any bonuses or profit sharing and it is still an additional $18K spend. Do you and your employees understand where their total comp dollars are being spent and how they are valued? We can help you ensure that your employee culture and total compensation packages are working together.