Employees focus on the paycheck they get each pay date and overlook the fact that their actual remuneration in terms of what it costs the employer is much higher. To educate them it is a good idea to produce an annual statement that details all the aspects of their compensation to drive the point home. |  | | |
The document should be put together each year end with prior year numbers to show changes. It should include not only the employee’s salary but also employer’s FICA contribution, medical coverage, 401(k), incentive bonus, car allowance, training, sick time, vacation and any other compensation or compensation equivalents they have received during the year. By doing this, you emphasize their total compensation. It is also a great way to highlight any increases that you have made in medical contributions, which otherwise tend to be unappreciated – a pay raise the employee doesn’t even know that they have received. Employees are pleasantly surprised by the total amount of their compensation package, and the Hidden Paycheck Statement can have a positive impact on employee morale. 
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