That 'Comp Pie' Keeps on Diminishing - By John Hendrie

Employees often lose sight of the value of their benefits in their overall compensation.  They probably do not know that the only so called benefits an employer has to provide under the law are Unemployment Insurance and any OSHA award for injuries on the job.  These, along with compliance with Wage and Hour, are about it.  Sometimes it is very important to inform employees of this fact of economic life. 

There is a dollar value to every benefit the employer offers, and that “Compensation Pie” has many ingredients – salary, health, vacation, disability and the like.  The higher up the chain, the more lucrative the perquisites become, including plane usage, a car, deferred income, country club membership and beyond.

When times are sound and booming, and we have extensive employee movement, I have always counseled folks to create a “T” account, where they can unemotionally evaluate a potential move to another employer.  You create at least two of these accounts – one for the overall compensation comparison and another for the more personal and career considerations, such as commuting time, improved organizational exposure, enriching opportunities, company culture and the like.  Tally those two, and you will realistically ascertain if a professional move is warranted.

When times are tough, we need to take care to be secure within our current post and particularly keen about our worth.  This is also the time where an employer takes a hard look at the benefit package and begins to tighten that up, and greater cost sharing is required or a benefit is simply dropped.  Many in the public sector and union groups simply have not experienced this, for they have made great historical strides with their negotiated contracts and now it is time for “give backs”. 

So, with increased cost sharing and give backs, our “Compensation Pie” looks more like a Hostess cupcake.  This trending will continue, as employers cut costs further.  The pie had grown over the decades, as everyone was aiming to be competitive and retain and or attract talent.  The fact is for now and forever the golden good times are history.  Employers will need to be inventive and creative with their packages, which have lost their lustre. 

We all read and hear daily how horrible things are.  This does not help to create a positive company culture, where job security is paramount.  One very smart move by management would be to distribute an Annual Benefit accounting for their employees, for I can guarantee you that most do not know the full value of those benefits.  It is hard to be appreciative, even of devalued benefits, when you are not informed.

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