Most employees don’t fully know what they’re really paid: they see their salary, but not the full value of the benefits their employer provides alongside it.
If you ask most employees what they value most about their job, salary usually tops the list. But for many employers, salary is only part of the story. Benefits, like health insurance coverage, retirement contributions, and time off, can add tens of thousands of dollars in additional value each year.
However, most employees don’t recognize the value of their employer’s investment in them. Total compensation statements can help close that gap by illustrating the combined value of salary, benefits, and other rewards.
Why is there a gap between having benefits and appreciating them?
Even well-designed benefits programs can go underappreciated if employees don’t understand them. According to LIMRA’s 2025 Benefits and Employee Attitude Tracker (BEAT) study, employee satisfaction is strongly tied to how well they understand their benefits. In fact, more than 70% of employees who understand their benefits well are highly satisfied, compared to lower satisfaction among those who don’t.
This lack of understanding can create a noticeable issue. Employers may invest in benefits, but their employees may not recognize or appreciate that investment.
What does a total compensation statement include?
A total compensation statement brings everything together in one clear, easy-to-read view. It can show:
- Base salary
- Bonuses or incentives
- Employer-paid medical, dental, and vision contributions
- Retirement plan contributions or match
- Time off and other perks
Instead of benefits feeling abstract, employees can see their full value in dollars.
In addition, LIMRA reports, “Employees are more likely to understand their benefits when total compensation statements are available.” That’s because they show how much an employer contributes beyond pay.
Why do total compensation statements matter for employers?
1. Fosters stronger appreciation among employees
When employees see the full value of their compensation, they can begin to recognize the broader support they’re receiving beyond their salary.
This matters in today’s environment, where healthcare and retirement costs continue to climb. Benefits may represent a growing share of total pay, but only if employees understand them.
2. Nurtures better retention and engagement
LIMRA data shows that more than 6 in 10 employees say benefits make them more likely to stay with their employer. But that connection depends on awareness. If employees don’t understand what’s offered, they can undervalue it or overlook it when comparing job opportunities. Providing a clear total compensation statement helps reinforce why staying can make sense.
3. Helps improve benefits utilization
Another key insight from industry research is that when employees don’t understand their benefits, they’re less likely to enroll. This means valuable programs, such as supplemental coverage, retirement, savings tools, or wellness resources, may go unused.
By outlining what’s available and what it’s worth, total compensation statements can drive stronger participation, and better outcomes, for employees.
How do automation tools make it easier to create total compensation statements?
In the past, creating total compensation statements had been a time‑consuming process. Employers often had to pull data from payroll systems, benefits platforms, and retirement plans, then manually organize it into something clear and meaningful for employees.
Today, advances in AI and automation are making it much easier to bring all this information together. Modern tools can pull data from multiple systems, calculate employer contributions, and generate personalized statements at scale. Instead of building each report by hand, employers can create consistent, easy‑to‑understand summaries in a fraction of the time, making it far more practical to share them regularly, not just once a year.
This matters because many organizations still aren’t taking advantage of this approach. In fact, only about 42% of employees say they receive a total compensation statement today.
As expectations continue to shift toward greater transparency and personalization, providing a clear view of total compensation is not only an opportunity for employers to stand out, but it’s also becoming a standard part of delivering a strong employee experience.
Frequently asked questions
What is a total compensation statement?
A total compensation statement is a document that shows the full value of an employee’s pay, including base salary, bonuses, employer-paid insurance contributions, retirement plan contributions, and other benefits, not just their salary alone.
Why don’t employees appreciate their benefits?
Employees often don’t appreciate their benefits because they don’t fully understand them. According to LIMRA, employees who understand their benefits well are far more likely to be satisfied with them than those who don’t.
Do total compensation statements improve retention?
Yes, they often do. LIMRA data shows that more than 6 in 10 employees say benefits make them more likely to stay with their employer, but that connection depends on employees understanding what they’re offered.
How many employers currently provide total compensation statements?
Only about 42% of employees say they currently receive a total compensation statement, according to LIMRA, leaving room for many employers to close the gap.
How The Baldwin Group can help
The Baldwin Group helps employers bring total compensation statements to life in a way that’s clear, accurate, and scalable. Our employee benefits advisors can assist with producing a document that’s designed to help employees recognize and appreciate what they receive. They can:
- Identify all components of compensation and employer contributions
- Organize and simplify complex data into easy-to-understand formats
- Leverage technology solutions to automate reporting and reduce manual work
- Align statements with broader communication strategies so employees understand the value
What are best practices for a total compensation statement?
- Use plain language – Avoid jargon and make it easy to understand at a glance.
- Show employer contributions – Highlight what the organization pays, not just employee costs.
- Make it visual – Charts and bullet points can help employees quickly grasp total value.
- Deliver it regularly – Annual updates are a good baseline, with reminders during open enrollment.
- Pair it with education – Statements work best when combined with opportunities to ask questions and learn more.
Let’s work together to help show employees the value of the benefits you provide.
This document is intended for general information purposes only and should not be construed as advice or opinions on any specific facts or circumstances. The content of this document is made available on an “as is” basis, without warranty of any kind. The Baldwin Insurance Group Holdings, LLC (“The Baldwin Group”), its affiliates, and subsidiaries do not guarantee that this information is, or can be relied on for, compliance with any law or regulation, assurance against preventable losses, or freedom from legal liability. This publication is not intended to be legal, underwriting, or any other type of professional advice. The Baldwin Group does not guarantee any particular outcome and makes no commitment to update any information herein or remove any items that are no longer accurate or complete. Furthermore, The Baldwin Group does not assume any liability to any person or organization for loss or damage caused by or resulting from any reliance placed on that content. Persons requiring advice should always consult an independent adviser.
