Compensation value is underestimated

By Staff -- Manufacturing Business Technology, 5/1/2007

A majority of workers misunderstand the value of their total compensation packages, including salary and benefits—a fact that may lead to employee satisfaction problems and other issues.

A new survey conducted by Harris Interactive and Rockville, Md.-based benefits communication consultancy Charlton Consulting Group indicates 51 percent of the U.S. full-time workforce believes employers pay 30 percent or less—over and above their wages—for employee benefits such as health, life, and disability insurance; as well as retirement benefits and paid time off. Yet employers actually pay 43 percent over and above wages and salary for employee benefits, as found in a September 2006 U.S. Bureau of Labor Statistics report.

Personalized communications tools, such as total compensation statements, improve employees' appreciation of the value of their benefits, yet according to the report, far fewer employers actually use these tools.