Estimates show that benefits, such as health insurance, paid time off, pension plans and disability insurance, make up approximately 30 percent to 40 percent of an employee’s total compensation package.  However, according to the Society for Human Resource Management, employees have little, if any, understanding as to the value of their benefits as part of overall compensation.

Benefits are considered the “hidden paycheck” of compensation. Unlike salary, which can be put into a bank or spent, benefits don’t provide liquidity. They are, however, important nonetheless.

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