Benefits Analysis

Educate employees about the full value of their compensation packages.
1 min read
Opinions expressed by Entrepreneur contributors are their own.

Unfortunately, most employees view their compensation package with a salary bias. Weekly or monthly take-home pay is the "big picture" in their minds. It is therefore critical that you take the time to show not only your outstanding performers, but every one of your employees, the full value of their compensation package. It's up to you to paint the real "big picture."

Create a list of all the benefits that are available to your employees. Next to each benefit, show its annual dollar value. For example, if you provide health insurance, show the dollar amount you contribute each year. For sick leave, show what it would cost you annually if the benefit was fully used. Make sure you include all your government contributions for benefits such as Social Security, workers' compensation and unemployment insurance. Costs for these programs vary from state to state, so be sure to adjust your figures accordingly.

Excerpted from Attracting & Rewarding Outstanding Employees

More from Entrepreneur

Get heaping discounts to books you love delivered straight to your inbox. We’ll feature a different book each week and share exclusive deals you won’t find anywhere else.
Jumpstart Your Business. Entrepreneur Insider is your all-access pass to the skills, experts, and network you need to get your business off the ground—or take it to the next level.
Starting, buying, or growing your small business shouldn’t be hard. Guidant Financial works to make financing easy for current and aspiring small business owners by providing custom funding solutions, financing education, and more.

Latest on Entrepreneur