Accurate, digital total reward statements can help boost benefits opt-ins, and improve employee retention
Total reward statements (TRS) are used by employers to demonstrate to employees the true value of all their entire pay and reward package – which may comprise basic pay, overtime, bonuses, pension contributions, health benefits and more. Too often, employees think of their reward package in terms of their pay – overlooking the other benefits and financial contributions that their employers make on their behalf.
What are total reward statements? Total reward statements are useful for both job candidates and employees. Providing total reward statements to candidates when making a job offer helps them understand how the pay and reward package you’ve put together compares with other offers they might be considering. Similarly, making a total reward statement available to employees through your HR system helps them to understand the benefits of reward statements and the value of the ongoing investment your organisation makes in their employment.
Why provide total reward statements?
- They help people understand the full value of their pay, reward and benefits package
- It raises awareness of the value of their pension, and the importance of making contributions
- They strengthen the transparency of communications between employers and their staff
- In a competitive labour market, they can boost employee retention
- They enable employees to make informed decisions about whether to opt in to benefits such as pension auto-enrolment and any health insurance schemes you might offer
- They can help to increase take-up of employee benefits by publicising their availability
- Making them available online can help to increase employee engagement with self-service online HR systems
How to compile total reward statements
HR software such as Ciphr makes it simple for HR teams to compile total reward statements, because these systems can automatically draw on relevant information held in them and output it in an easy-to-read format. A typical total reward statement will feature a list, table or infographic describing all elements of the employee’s reward package (with a brief definition of each item if required), along with the individual value of each item, and the total value of the package.
What to include in statements
Items you may wish to include in a total reward statement include:
- Base pay
- Variable pay
- Share options, incentives or bonuses
- Employer pension contributions
- Company car allowance
- Private medical or dental insurance
- Season ticket allowances
- Cycle to work schemes
You may also wish to include items that are harder to quantify (and therefore won’t have a specific itemised value), such as discount schemes, L&D programmes, and opportunities for career progression.
Total reward statements rely on accurate data from a number of different sources – including HR, payroll and benefits systems. Ciphr’s API makes it easy for organisations to link together different systems, creating a single source of truth for employee data and ensuring better data security and accuracy – all of which is crucial to providing total reward statements. Find out how Ciphr can help by emailing firstname.lastname@example.org or calling 01628 814242.