Can You Use a Total Compensation Figure in an Offer Letter?
Yes, with real figures from your plan and a note that the value depends on the coverage the employee chooses.
How it works in practice
Yes, with real figures from your plan and a note that the value depends on the coverage the employee chooses.
An offer letter shows base pay. It rarely shows the premium contribution, the deductible, the disability coverage or the account deposits that come with it. A total figure fills that gap for a candidate comparing offers.
Use figures from your own plan, not generic averages. State which tier the figure assumes, and say plainly that the value depends on what the employee elects.
Keep the figure consistent with what current employees see on their statements, so a new hire is not shown a different number from a colleague.
Three places to go next
Total compensation calculator
Add up salary and employer-paid benefits.
Retention messaging
Show employees the value of the package they already have.
Compensation strategy
Pay and benefits designed as one budget.
Related questions.
What should the note say?
That the figure reflects a stated tier and that the actual value depends on the coverage the employee chooses.
Which numbers should go in?
Real figures from your plan, not generic averages.
Should it match employee statements?
Yes, so candidates and current employees see consistent numbers.
Where this comes from.
This page describes how CFH builds and times total compensation statements and related materials for employer clients. It uses no outside statistics. The related guides below cover the wider process.
Send us your renewal.
We’ll tell you whether it looks competitive, where we see opportunity, and the five questions we’d put to your carrier. No cost, and no obligation to move anything.
The renewal letter
Your current plan summary
Contribution split by tier
Enrolled counts by tier
Four documents — two more if your group is 50 or more. Nothing else; every extra one is a reason to postpone.
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