· While most employees—and possibly some employers—think of employee compensation primarily in terms of “wages” or “salary,” many employees’ total compensation packages add up to a significantly larger figure.
· Many employees don’t understand the actual costs of their total compensation packages.
· Many employers do not adequately communicate to employees the cost of benefits they provide.
· Different employees place different values on specific benefits.
· Offering choice over the mix of compensation has some costs, but can benefit both firms and employees.