How Much Am I Really Worth? – The Total Cost of an Employee

By Michael Rozum, Advisor at acumen

It was only a matter of time in our young lives before we got the “talk” from our parent, grandparent or guardian. That talk, of course, was the reminder that they “pay for the gas in the car, the roof over our heads and the food on the table”. I can’t speak for everyone, but that conversation definitely happened more than once in my household growing up and it often came at a time when I was acting ungrateful.

Now, as a parent, it’s only a matter of time before I start sounding even more like my parents as I echo those words. Initially, it’s a learning experience for young kids as they start to correlate jobs with money and the things we own. But as we get older, it’s a nice reminder that “money doesn’t grow on trees”. For some, that much needed perspective and appreciation for your parents’ efforts doesn’t come into focus until you’ve been out of the house for a few years. Only then do you realize how right they were.

Employers wrestle with this predicament as well.  For many, it’s too late to wait for an employee to leave the organization before they truly understand the benefits and compensation they were earning. To get the most value out of the dollars that are being spent, it makes the most sense to communicate that information before or while that individual is employed. It’s important employees understand and appreciate the total investment the company is making toward each individual.

Articulating that information in a clean and concise way can be tough to compile and deliver for some employers.  At Acumen, we help our clients deliver this message by utilizing some key tools available through our Wisdom Network. If a company is starting from scratch, we can help with salary benchmarking and calculating the hidden expenses that contribute to the true cost of hiring a new employee. Once hired, we help clients create personalized statements for employees so they can see not just their salary, but the total compensation they are receiving from the employer through benefits, PTO, and other perks.

For more information, please contact acumen today!

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