It is our recommendation that once each year a company should provide every employee with an easy-to-read document that shows the total value of an employee’s compensation and benefits for the prior calendar year.
Typically referred to as an Employee Wage & Benefit Statement, this document identifies the “hidden value” of benefits that a company provides to an employee beyond the paycheck.
Human nature being what it is, most of us have a tendency to take for granted and underestimate the things we don’t see, with company-provided benefits as a prime example of this.
Very few employees actually realize the cost that a company incurs for vacation days, health insurance, matching FICA, workers compensation, etc.
There are dozens of companies that offer numerous formats for Wage & Benefit Statements.
Over the years, we have found the following 2 major flaws in most of those Statements:
- The documents were complicated forms containing multiple pages of graphs, charts, numbers, and paragraphs of information.
- The Statements failed to summarize the value of benefits in simple dollars and cents terms that the average employee could easily understand.
This is the reason that we have created our own one-page Employee Wage & Benefit Statement that is clear, concise, and reader-friendly.