One of the toughest decisions employers have to make is how to dole out employee benefits. If laborers receive too few benefits, they're likely to grow dissatisfied and start searching for a job that pays them a salary closer to the industry average. If employers emphasize benefits too much, however, they're spending money that might be put to better use somewhere else in the company.
Many employers decide employee benefits by looking at an annual report published by the U.S. Bureau of Labor Statistics. This report reviews the average salaries and benefits paid to both private and government workers. The March 2010 report showed that benefits make up 30.4% of the average laborer's paycheck. 1 We've even seen this statistics suggesting this number to be as high as almost 44% of the average laborer's paycheck.
Benefits were divided into the following categories:
When evaluating these numbers, it is important to remember that different industries may place a stronger emphasis on certain benefits. However, if we use the average numbers provided, an employee with an annual salary of $50,000 would have a total compensation of $71,839. That employee would be paid:
Use these statistics to evaluate the benefits you're offering. If your benefits program is lacking, consider investing in your work force. By bringing employee benefits up to standard, especially when your company is going through a difficult time, you are telling your employees that you value them. Your work force will be likely to remember your actions and stick with you, even when other opportunities arise. Most employees making $50,000 per year would be shocked to learn that they are receiving an additional $21,839 in benefits. Increase your work force's loyalty by showing them how much they are receiving in benefits through a total compensation report from COMPackage.