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Communicating a Total Compensation Package

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Communicating Compensation and Benefits Policy

Pay and bonuses are the things that get talked about most-yet are also the things about which we are asked to keep quiet. If a total compensation policy is solid, why would you not want to be honest and tell your employees and customers exactly what you are doing?
Here are your final questions: How much should managers communicate about the total compensation program of a company? And, who should be included in that discussion? Clients? Shareholders? What do you think

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Total compensation programs generally include five basic components which include salary or direct compensation, short and long-term incentives; health and welfare benefits; deferred compensation (401k,etc) and employee firnge benefits (vacation, sick pay, bonuses, etc). While these topics in general are discussed by managers and employers as a whole, salaries, while in everybody's thoughts, are rarely discussed openly. No, managers should not broadcast employee's salaries; however, the more and better communication about compensation can boost employees' satisfaction with their pay which in turn, leads to a stronger committment to the organization (Krattenmaker, 2002).

When it comes to the discussion of pay, misinformation usually comes with it. This misinformation is generally more often than not, causes damage rather than the truth. There are rumors about how upper management compensation is determined and how ...

Solution Summary

This solution discusses why you would communicate a total compensation package and to whom you would communicate it to (employees and/or clients and stockholders). Solution is approximately 400 words with two citations.

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I remember in the 1990's my company at the time paid two thirds of our insurance premium. Today, my wife's employer pays zero. In addition, the ten percent deductible is now gone and we must pay $1,000 up front before the benefits kick in. That said, without flex spending, what we have is catastrophe insurance. This plan is not leading in the industry. That said: If the benefit is now a high cost, it diminishes the value and can compromise recruitment. How can companies make insurance more affordable in today's economy?
2- In many cases, the benefit package in theory adds up to 35% to your salary. If a coworker never needs to use insurance, it is difficult for them to realize how well they are actually paid. So how can companies better communicate the total compensation package and in the end, improve retention?

Second Part:

3-However, in most cases, if there was a great benefit, another benefit or salary was much less. There is a fine line with being competitive and yet maintaining costs. How should management draw this line and still attain the greatest result from their investment?

4- I wonder how the national health care plan will impact employers medical insurance plans. Will this compromise many companies benefit package?

First Part:

1- I remember in the 1990's my company at the time paid two thirds of our insurance premium. Today, my wife's employer pays zero. In addition, the ten percent deductible is now gone and we must pay $1,000 up front before the benefits kick in. That said, without flex spending, what we have is catastrophe insurance. This plan is not leading in the industry. That said: If the benefit is now a high cost, it diminishes the value and can compromise recruitment. How can companies make insurance more affordable in today's economy?
2- In many cases, the benefit package in theory adds up to 35% to your salary. If a coworker never needs to use insurance, it is difficult for them to realize how well they are actually paid. So how can companies better communicate the total compensation package and in the end, improve retention?

Second Part:

3-However, in most cases, if there was a great benefit, another benefit or salary was much less. There is a fine line with being competitive and yet maintaining costs. How should management draw this line and still attain the greatest result from their investment?

4- I wonder how the national health care plan will impact employers medical insurance plans. Will this compromise many companies benefit package?

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