Total Compensation

William R. Pupkis, CMPE, Healthcare Consultant
Total-CompensationWith W-2 forms in the mail, now is a good time to inform your staff of the facts regarding their total compensation.  Many employees are unaware of just how much you, the employer, invest in them financially.  A total compensation statement not only shows your staff the value of the practice’s benefit package, but it also provides you with an opportunity to demonstrate the practice’s commitment to its employees.

As you compile information for the total compensation statements, remember to include all benefits, not just salary, bonuses, and health benefits.  Examples are listed below.

  • Mandatory benefits – social security (FICA), unemployment
  • Health benefits – medical insurance, dental insurance, pharmacy benefits
  • Paid time off – vacation, sick days, holidays, jury duty, bereavement, maternity/paternity   leave
  • Retirement and related income benefits – 401K, disability insurance, life insurance
  • Professional development – tuition reimbursement, professional membership dues
  • Miscellaneous benefits – bonuses, uniforms, mileage reimbursement

If you pay a portion of your employees’ health insurance costs and match a percentage of their 401K contributions, show a comparison of employer and employee distributions.  You provide these benefits to attract and keep the best possible workers.  Let your staff see the true worth of their hard work and dedication to your practice.

An Internet search of “total compensation statement” will give you a long list of companies and programs that produce these forms.  You can even find sample total compensation calculators, such as the one provided by CalcXML.

Regardless of how you choose to present this material to your employees – with color pie charts, bar graphs, or a simple list of numbers – remember to include a personalized message including the reason for distributing this information (to share with them the complete picture of their compensation package) and your thanks for their ongoing efforts toward the success of the practice (never waste an opportunity to let your employees know they are appreciated).

Terms and Conditions

Statements and opinions expressed in the Newsletter, Preferred Talk, are those of the author(s) and do not necessarily reflect those of DT Preferred Group, LLC. DT Preferred Group, LLC makes no representations as to the accuracy or completeness of any information on this site or found by following any link on this site. In publishing this Newsletter, neither the authors nor DT Preferred Group, LLC are engaged in rendering medical or other professional service. If medical advice or other expert assistance is required, the services of a competent professional should be sought. DT Preferred Group, LLC will not be liable for any losses, injuries, or damages from the display or use of this information. This policy is subject to change at anytime.

Tags:

This entry was posted on Tuesday, March 18th, 2014 at 9:45 pm and is filed under Practice Management. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.

Comments are closed.