Boosting compensation? Think benefits

When it comes to boosting your compensation, you likely think about marching into your boss' office and demanding a raise.

The thought of it probably makes you break out in a cold sweat.

But here's a little tip: You're focusing on the wrong thing. Sure, a fat raise would be great. But in this tough economy, don't bet on it; average raises for 2012 are expected to be a slim 3 percent, according to survey data from HR consultants Mercer.

To really crank up your compensation, you don't have to confront your boss with any ultimatums. You just have to crack open your employee handbook. For private-sector workers, benefits now compose 29.6 percent of what you're taking home -- even if you don't realize it.

And if you're a government staffer, that number spikes even higher, at 34.6 percent.

Yet most people aren't taking full advantage of the benefits being offered to them. In fact, a recent study from Prudential reveals that 68 percent of employees make little to no effort in selecting their benefits. So basically, you're giving up free money -- and you have no one but yourself to blame.

Some benefits are employer-paid, like 401(k) matches; some are employee-paid, like having the option of heavily discounted life insurance. Either way, you can materially improve your finances by doing a little due diligence. After all, we're still in the thick of open enrollment season, which means that there's time to work those benefits to your best advantage.

The likeliest ways to uncover that hidden compensation:

Leverage insurance discounts. Large employers are often able to negotiate steep discounts in home and auto insurance, thanks to their vast purchasing power. "That's in the neighborhood of $500 to $600 annual savings right there," says Chris Covill, a partner at Mercer.

Coverage for long-term care can also make a lot of sense, particularly for those over 50; many health plans won't cover costs for facilities like nursing homes, which can add up quickly in the event of debilitating injuries like strokes.

Boost your health coverage if it makes sense. If a relatively small increase in your monthly premium can lead to vastly superior coverage, then consider taking the short-term hit -- especially if you have major life changes in the pipeline, like pregnancy, that will lead to greater medical costs.

Look for the reintroduced 401(k) match. During the financial meltdown of 2008-09, many companies suspended or eliminated their 401(k) matches. But 75 percent of companies that ditched their matches have since reinstated them, according to a study by Towers Watson -- and that means you could be leaving cash on the table.

Think outside the box. These days many firms, terrified of the costs associated with chronic health conditions, will cover at least a portion of your gym membership. Many company intranets now feature online "malls," with special discounts negotiated with major retailers. Tuition reimbursement, company-sponsored day care, flexible spending accounts and more: They all represent ways to improve your bottom line, right now.

TIPS FOR MAXIMIZING YOUR EMPLOYEE BENEFITS

TAKE ADVANTAGE of home, auto or long-term care insurance discounts negotiated by your employer

BOOST your health coverage, especially if you expect to face greater medical costs.

SIGN UP for your company’s 401(k) matching contribution; many companies have reinstated matches they cut during the financial crisis.

LOOK for gym membership subsidies.

FIND special discounts from retailers on your company’s intranet “mall.”

SEEK tuition reimbursement.

FLEXIBLE SPENDING accounts can save you taxes.