April 2007

51% underestimate value of their compensation

A majority of workers misunderstand the value of their total compensation packages, including salary and benefits, according to a new survey conducted by Harris Interactive and Charlton Consulting Group, a benefits communications consultancy.

The results indicate that 51 percent of full-time workers in the United States believe their employers pay 30 percent or less — above their wages — for employee benefits such as health, life, disability insurance, retirement benefits, and paid time off.

In contrast, employers are actually paying 43 percent above wages and salary for employee benefits, according to a September 2006 report from the U.S. Department of Labor’s Bureau of Labor Statistics.

The survey also shows a connection between the employees’ understanding of and satisfaction with their total compensation. According to the survey, 75 percent of employees who say they are “very satisfied” with their total compensation also have at least “quite a bit” of understanding of their benefits packages.  

Furthermore, the survey revealed that only 19 percent of employees “completely” understand the total dollar value of benefits they receive from their employer. Similarly, 22 percent of workers report being “very” satisfied with their current total compensation and benefits package, while 33 percent are “very” or “somewhat” dissatisfied.

Source: PR Newswire, www.prnewswire.com

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