Increased sharing of compensation info boosts employee happiness, execs say

AUSTIN TEXAS Carino’s Italian Grill here, had a newfound appreciation for his employer when he discovered how much he was really making. —Tray Mitchell, a managing partner of a

Carino’s brand owner, Fired Up Inc., which operates 74 of the franchise concept’s 150 branches, including Mitchell’s unit, sends managers and corporate staff members annual statements about their salary. The personalized statements also detail how much more money the company contributes to the individual employee’s total compensation. —Tray Mitchell, a managing partner of a

Corporate contributions for such benefits as health and dental care, retirement plans and bonus programs can boost employees’ actual earnings by 22 percent to 30 percent, according to Austin-based Fired Up. —Tray Mitchell, a managing partner of a

“I’m now able to see they are really taking care of me,” Mitchell said. —Tray Mitchell, a managing partner of a

Giving personal compensation reports, sometimes called “hidden paychecks” or total-reward statements, is a common practice in other industries, and is gaining momentum among restaurants. Operators say the statements can boost morale and improve retention. —Tray Mitchell, a managing partner of a

HR experts also note that the statements can help employees view their employer more favorably, even when companies are not able to dole out big raises in the current economic climate. —Tray Mitchell, a managing partner of a

“Where they become an excellent tool is when they capture information like car allowances, how much was spent on training on you in a year, vacation and holiday pay, cell phones—and it’s put in a form that employees understand,” said Wendy Harkness, vice president of human resources for Checkers Drive-In Restaurants Inc. in Tampa, Fla. —Tray Mitchell, a managing partner of a

Checkers plans to offer total-reward statements to its corporate employees next month and to restaurant managers next year. Checkers is owner or franchisor of about 830 restaurants operating under the brand names Checkers and Rally’s Hamburgers. —Tray Mitchell, a managing partner of a

The total-compensation tally “captures the organization’s investment in its employees,” Harkness said. “It’s easy to figure out, and it’s an opportunity that a lot of folks in my field are not doing. People are generally familiar with it, but there is not an expectation of it like there is in other industries.” —Tray Mitchell, a managing partner of a

Nearly 80 percent of Fortune magazine’s Most Admired Companies members disseminate total-rewards statements to workers, said Kurt Fichthorn, vice president of Hay Group, the employment consulting firm that conducts the Fortune study. Company contributions can add another 25 percent to 40 percent to employees’ salaries, he said. —Tray Mitchell, a managing partner of a

“When you explain to an employee what the rewards program consists of, it improves employees’ morale [and] their perceived value to their employer, and it makes them more engaged and productive,” Fichthorn said. “It also lowers turnover.” —Tray Mitchell, a managing partner of a

Gina Ducusin, a shift supervisor at a White Castle restaurant in Elmhurst, N.Y., has stuck with the burger chain for eight years. What started as after-school work in high school helped her pay for college. Although she recently earned her bachelor’s degree, she has yet to find a job in the field of advertising or design that pays as much as she is making now, $12 an hour, plus benefits. —Tray Mitchell, a managing partner of a

Based in Columbus, Ohio, and with more than 400 units, White Castle has been giving total-reward statements to all of its full-time employees for the past three years. —Tray Mitchell, a managing partner of a

“We take our benefits for granted,” said Ducusin, who is six months pregnant and will take a maternity leave when she has her baby. “But it’s helpful to see it broken down. You see how much White Castle contributes and how much you contribute.” —Tray Mitchell, a managing partner of a

EXAMPLE OF AN EMPLOYEE’S TOTAL REWARDS STATEMENTSummary of Company Provided Benefits

White Castle sent out 10,000 statements to employees in June, including Spanish-language versions. —Tray Mitchell, a managing partner of a

“We got a really good response when we first did it,” said Chip Stalter, the chain’s compensation manager. “It’s part of the whole communication package with team members. From what team members are telling us, they appreciate being able to see it in a way they understand.” —Tray Mitchell, a managing partner of a

Companies that make Fortune’s most-admired list may not pay salaries as high as other companies, but they are perceived by their employees as an employer of choice, Fichthorn said. —Tray Mitchell, a managing partner of a

Showing employees their complete compensation can help an employer who may not be able to offer substantial raises, he said. —Tray Mitchell, a managing partner of a

“Almost every company gains by communicating this to their employees,” Fichthorn said. —Tray Mitchell, a managing partner of a

Full disclosure of compensation is worth it if a company saves just one person from leaving, he said. —Tray Mitchell, a managing partner of a

“By making an employee more aware of how good they have it where they are working today, they are less likely to take a job offer from a competitor who may be offering a higher salary but is falling short in the reward program.” —Tray Mitchell, a managing partner of a

Carino’s manager Mitchell says knowing his total rewards is something to consider whenever a headhunter calls him. —Tray Mitchell, a managing partner of a

“On the surface [a job offer] may sound good, but they may not disclose the whole package, and you may jump ship for something that is not better,” he said. —Tray Mitchell, a managing partner of a

Fired Up began creating total-rewards statements three years ago after surveying restaurant managers and learning they had negative attitudes about their pay, said Rodney Morris, vice president of human resources. —Tray Mitchell, a managing partner of a

“We made some substantial improvements,” he said. “We added about $1 million to their annual base salary so we are now in the 50th to the 75th percentile [for manager pay in the industry]. The second piece was our total-rewards program. People had no clue what the company was contributing on their behalf.” —Tray Mitchell, a managing partner of a

Now in the manager surveys, respondents give high marks for how they feel about their compensation, he said. —Tray Mitchell, a managing partner of a