Total Reward Statments (March 2009) |
What is a Total Reward Statement?
A Total Reward Statement is a document used by employers to communicate the overall value of the rewards they offer to employees. Elements of reward such as base pay, benefits, and professional development programmes can be included on such a statement.
Why use them?
A major reason for using Total Reward Statements is to raise awareness of the value of the benefits employees are entitled to or receive. Very often benefits can be taken for granted – the statements help to show exactly how much more than a basic salary a company is providing to an employee and thus help build appreciation of an employer’s benefits scheme.
Total Reward Statements can also be useful in the run up to implementing additional employee benefits schemes, such as flexible benefits.
What do they show?
The statements outline the value of traditional benefits, such as salaries, pensions and employee share schemes, but also the value of other benefits such as training, personal development, health and well-being. (See following example.)
When deciding exactly what to include within a Total Reward Statement employers should consider the level of detail they wish to provide.
Employers should ensure they do not falsely raise employees’ expectations by including general details of benefits they are not eligible for, which can be counter productive and demotivating. Instead, each statement should be personalised to reflect an individual employee’s package.
The costs
The cost of providing Total Reward Statements varies depending on the size of an organisation, the number of terms and conditions, the format of delivery, the jurisdiction in which it is to be issued, and the accessibility and quality of data.
Offering online statements, however, is a very cost effective method of providing real time and easily accessible information.
If you would like to discuss how Total Reward Statements could help your business please contact us
Phone us on 020 7709 5560 or complete the online contact form
