Employee Compensation: Know the true costs of employment and optimize them to benefit employers, employees

KEY FINDINGS · While most employees—and possibly some employers—think of employee compensation primarily in terms of “wages” or “salary,” many employees’ total compensation packages add up to a significantly larger figure. · Many employees don’t understand the actual costs of their total compensation packages. · Many employers do not adequately communicate to employees the cost of benefits they provide. · Different employees place different values on specific benefits. · Offering choice over the mix of compensation has some costs, but can benefit both firms and employees