Ask most employees what they make and you get one answer: their hourly rate or salary. That is it.
Behind the scenes, you know there is a lot more going on. Health insurance. Payroll taxes. PTO. Retirement match. The random perks that never make it onto a pay stub. The problem is, if employees never see that full picture, they will walk for a small raise and think they are coming out ahead.
That is where total compensation statements earn their keep.
In our conversation on the NextGen Strategies Podcast, Trent from HR Butler put it plainly:
“We believe in total compensation statements. Tyler preaches it. Every one of those employees should see an annual compensation statement.”
A good statement pulls everything into one place:
Wages
Employer-paid health insurance and HSA/HRA contributions
Disability and life insurance
Employer payroll taxes
PTO value
Little things like lunches, stipends, or wellness benefits
When an employee sees that annual total, it changes the conversation. Suddenly leaving for 3,000 dollars more in base pay does not look so great if it means losing 100 percent employer paid health insurance and a strong 401(k) match.
Total comp statements also help in a gig-heavy world. People look at contract rates and think,
“If I made 50 dollars an hour on my own, I would be set.”
However, that number drops once you add in the employer side of taxes, health care, time off and retirement. A clear total comp breakdown lets you show employees what their “real” hourly rate already looks like when everything is factored in.
The mechanics are not as scary as they sound. Most of the data already lives in your payroll and benefits systems. A solid payroll partner can help you pull it together, generate the report, and even turn it into an easy dashboard. The real work is using it well:
Review it with employees at least once a year
Tie it into performance and raise conversations
Use it when you explain health plan options and retirement
Here at HR Butler, we talk a lot about helping employers “hire and retire” well, not just run payroll.
Total compensation statements fit that mindset. You are already investing heavily in your people.
When you show them the full value of that investment in a way they can actually see and understand, loyalty is not just a buzzword. It becomes a choice they can make with clear information in front of them.