Total Compensation Package Example

Total Compensation Package Example and Template

A total compensation package is a document that sets out all the elements of compensation for an employee. It includes salary/pay, eligibility for bonuses or other incentive payments, and all benefits including paid leave.

Below is a total compensation package example so you can see what it looks like. But remember, each organization has its own compensation philosophy and approach to benefits. Make sure your compensation statements are consistent with your compensation plan.

The goal is to quantify the total value of all cash compensation, benefits, and other perks that are part of the total compensation package. It's also a good idea to show what percentage of the package is base salary compared with remaining benefits. This helps employees understand the value of their compensation beyond base pay.

As you start working on your total compensation statements, consider adding explanations of the different types of rewards. This helps both managers and employees (or potential ones) understand what all goes into a total compensation package.

While your total compensation statements will look a little different, the example below will guide you through the pieces that make up a total compensation package.

Total Compensation Package Example:

Employee details:
Name: Alex Smith
Position: Customer Experience Manager
Financial compensation
Salary: $70,000 per year.
Hours: 40 hours per week
Overtime: N/A Exempt
Commission: N/A
Signing bonus: $5,000
Performance bonus: Discretionary bonus up to 15% of base salary at end of fiscal year depending on employee performance.
Other bonuses: Discretionary spot and holiday bonuses depending on company performance.
Relocation compensation: Will cover 100% of relocation fees including travel, packing services and home sale assistance.
Raises: Yearly cost-of-living raise of 3%. Additional raises up to 5% pay increase based on performance reviews and performance of company.

Retirement planning:
401(k): Traditional 401(k) with employer matching 100% of contributions up to 3% of employee salary after 1 year of employment.
Pension: N/A
Stock options: 1500 shares at $6 per share, vesting pro-rata per year and fully vested five years after hiring date.
Profit-sharing: N/A
Hazard pay: N/A

Benefits:
Health insurance: Choice of Kaiser, Aetna, Blue Cross, no deductible, low co-pays.
Health insurance cost to employee: Employer covers entire health insurance cost.
Dental care: Met Life, covers two cleanings and up to $1,000 of qualifying treatment per year.
Life insurance: Employer covers life insurance up to amount of salary with additional coverage available at employee's cost.
Workers' compensation: 2/3 of wages during recovery plus medical treatment and compensation for any permanent disability.
Disability: Short-term and long-term disability coverage provided for qualifying conditions.

Time off:
Vacation: 15 paid vacation days after first 90 days of employment and 20 vacation days after five years of employment. Can rollover up to 5 days per year.
Sick time: 12 sick days per year, no rollover.
Holidays: All federal holidays are paid time off.
Personal time off: Flexible unpaid time off for personal days.
Medical leave: Paid medical leave on a case-by-case basis, unpaid medical leave up to 12 weeks.
Parental leave: 12 weeks of paid leave for new parents, additional 8 weeks at half wages. Unpaid time off on as-needed basis.

Other:
Professional development: $500 yearly for professional development materials or professional memberships (with department approval).
Tuition reimbursement: $1,500 per year for courses or degree programs.
Memberships: Free standard gym membership, discounted special classes
Transportation vouchers: 50% off monthly train ticket or gas reimbursement based on commute.
Employee assistance programs: Access to 24/7 EAP with financial planning, counseling and addiction support services.
Flexible scheduling: Option of working 8-4, 9-5 or 10-6 with flexible lunch and break times.
Childcare: On site, no cost to employees. Reimbursement up to $1,000 per month for remote employees.
Meal plans: One free lunch per day from company cafeteria. N/A for remote employees.
Remote and hybrid options: Yes. Employee may work remote as needed or desired, but some on-site work will be required.