  {"id":20592,"date":"2018-11-22T13:05:00","date_gmt":"2018-11-22T13:05:00","guid":{"rendered":"https:\/\/benefex-dev.local\/en\/2018\/11\/22\/what-is-a-total-rewards-statement-trs\/"},"modified":"2018-11-22T13:05:00","modified_gmt":"2018-11-22T13:05:00","slug":"what-is-a-total-rewards-statement-trs","status":"publish","type":"post","link":"https:\/\/benifex.com\/en\/what-is-a-total-rewards-statement-trs\/","title":{"rendered":"Total Reward Statement &#8211; What is that?"},"content":{"rendered":"<p style=\"font-size: 20px;\"><span style=\"color: #000000; font-family: arial, helvetica, sans-serif;\">A Total Reward Statement calculates, assembles and visualizes the total value of an employee\u2019s compensation package in addition to an employee\u2019s basic salary. This can include:<\/span><\/p>\n<p><span style=\"font-family: arial, helvetica, sans-serif;\"><!--more--><\/span><\/p>\n<ul>\n<li><span style=\"font-family: arial, helvetica, sans-serif;\">Benefits<\/span><\/li>\n<li><span style=\"font-family: arial, helvetica, sans-serif;\">Insurances<\/span><\/li>\n<li><span style=\"font-family: arial, helvetica, sans-serif;\">Pensions<\/span><\/li>\n<li><span style=\"font-family: arial, helvetica, sans-serif;\">Tax and fiscal contributions<\/span><\/li>\n<li><span style=\"font-family: arial, helvetica, sans-serif;\">Employer national insurance contributions<\/span><\/li>\n<li><span style=\"font-family: arial, helvetica, sans-serif;\">Any additional compensation (e.g. an employee bonus)<\/span><\/li>\n<\/ul>\n<p><span style=\"font-family: arial, helvetica, sans-serif;\">Total Reward Statements (also known as an employee compensation statement) are often provided annually by employers to their employees. They are often presented as a printed document or digitally for the employee to access online. A Total Reward Statement does not replace an employee\u2019s monthly payslip or annual salary summary.<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"color: #000000;\"><em><span style=\"font-family: arial, helvetica, sans-serif;\">Tips! Don&#8217;t miss our recorded webinar where Tom Inglis, Client Manager at Benify, highlights the importance of TRS and provides examples from around the world.<\/span><\/em><\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"color: #000000;\"><em><span style=\"font-family: arial, helvetica, sans-serif;\">{{cta(&#8216;8b96b34a-6e01-464f-8b9e-1925af4174a4&#8242;,&#8217;justifycenter&#8217;)}}<\/span><\/em><\/span><\/p>\n<h2><span style=\"font-family: arial, helvetica, sans-serif;\">How is Total Reward Statement used in the workplace?<\/span><\/h2>\n<p><span style=\"font-family: arial, helvetica, sans-serif;\">Employers opt to use Total Reward Statements as part of an effective and sustainable employee communication strategy. In fact, Reward communication is essential for creating employee awareness and appreciation of their total reward. The statements themselves can be used for a number of different functions in the workplace, such as:<\/span><\/p>\n<ul>\n<li><span style=\"font-family: arial, helvetica, sans-serif;\">In order to boost an employer\u2019s ability to attract, recruit and retain its best employees. As the long-term benefits of a clearer total rewards communication go, this is usually the pick of the bunch. By visualizing and highlighting the full extent of an organization\u2019s total rewards strategy and flexible benefits scheme (either during recruitment exercises, onboarding processes or performance reviews), an employer will succeed in building a strong employer brand.<\/span>\n<\/li>\n<li><span style=\"font-family: arial, helvetica, sans-serif;\">To cap salary inflation and reduce employee outlay. Often used by managers as part of performance, development- and salary reviews, a total rewards communication is effective in giving better value to an employee\u2019s existing compensation package. As salary costs become a larger part of an employer\u2019s salary outlay, it is important that modern employers find cheaper alternatives to accurately communicate existing total rewards, benefits and compensation packages to their employees.<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-family: arial, helvetica, sans-serif;\">Why is it important to show an employee\u2019s total rewards and compensation package?<\/span><\/h2>\n<p><span style=\"font-family: arial, helvetica, sans-serif;\">A Total Reward Statement can offer an employee a better understanding of what they earn, what benefits they are entitled to and which pensions and insurances their employer provides them as part of their employment. When an employee is only able to see part of this offering, the true value of the employer\u2019s rewards package becomes lost. This leads to, what we call, a greater compensation gap.<\/span><\/p>\n<p><span style=\"font-family: arial, helvetica, sans-serif;\"><img decoding=\"async\" src=\"https:\/\/cdn2.hubspot.net\/hubfs\/2798830\/BENIFY_What%20is%20a%20Total%20Rewards%20Statement.jpg\" alt=\"BENIFY_What is a Total Rewards Statement\" width=\"1000\" style=\"width: 1000px; margin: 10px 0px 0px;\"><\/span><\/p>\n<h2><span style=\"font-family: arial, helvetica, sans-serif;\">What happens when an employee does not understand their total rewards package?<\/span><\/h2>\n<p><span style=\"font-family: arial, helvetica, sans-serif;\">At Benify, we discovered that as many as 80% of all employees continue to significantly underestimate the value of their employer\u2019s flexible benefits scheme and total reward offering \u2013 meaning that fewer employees will take advantage of any benefit, subsidy or insurance policy which may be available to them. Incredibly, the average employee will only see 67% of their total compensation.<\/span><\/p>\n<p><span style=\"font-family: arial, helvetica, sans-serif;\">Benify\u2019s recent compensation gap study also identified clear disparities across sector, age and geographical location. For example, those who work within salary and rewards, such as HR and payroll professionals, will correctly value their total compensation and rewards packages by up to 37% more than employees from other sectors. This leads more and more employees to resort to other options, such as online compensation calculators, in order to understand their total compensation. Again, this is why reward communication is essential.<\/span><\/p>\n<h2><span style=\"font-family: arial, helvetica, sans-serif;\">How to calculate an employee\u2019s total salary and rewards<\/span><\/h2>\n<p><span style=\"font-family: arial, helvetica, sans-serif;\">This is the tricky part. Employers often find that calculating and creating a Total Rewards Statement for each employee can be a time-consuming and arduous process \u2013 one which eats away at a lot of business time and expense.<\/span><\/p>\n<p><span style=\"font-family: arial, helvetica, sans-serif;\">To create an effective overview of total employee compensation and rewards \u2013 an employer must factor in a number of different variables. These variables may be specific to that particular employer, or they may be set and regulated through a national infrastructure (i.e. government tax legislation).<\/span><\/p>\n<p><span style=\"font-family: arial, helvetica, sans-serif;\">In addition to gross salary, a Total Reward Statement must factor in:<\/span><\/p>\n<ul>\n<li><span style=\"font-family: arial, helvetica, sans-serif;\">National tax models and employee tax parameters<\/span><\/li>\n<li><span style=\"font-family: arial, helvetica, sans-serif;\">Company subsidies, benefits and bonuses (e.g. wellness grant, employee car subsidy)<\/span><\/li>\n<li><span style=\"font-family: arial, helvetica, sans-serif;\">Occupational pension- and state pension models<\/span><\/li>\n<li><span style=\"font-family: arial, helvetica, sans-serif;\">National insurance models<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-family: arial, helvetica, sans-serif;\">Digitalizing Total Rewards through data automation<\/span><\/h2>\n<p><span style=\"font-family: arial, helvetica, sans-serif;\">Once an employer has created a model which factors in all of the relevant salary and rewards ingredients, it then becomes easier for the employer to automate this process to a broader audience. This becomes a simpler and cheaper alternative \u2013 meaning that the employer can duplicate each Total Rewards Statement, but with different variables based on the employee\u2019s situation.<\/span><\/p>\n<hr>\n<p style=\"text-align: center;\"><span style=\"font-family: arial, helvetica, sans-serif; color: #000000;\">Want to learn more about making your employees aware of your investment? Download our whitepaper, <em>Total Reward Statements: Showing Employees Your True Investment<\/em>.<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-family: arial, helvetica, sans-serif; color: #000000;\">{{cta(&#8216;befbff53-a683-4e93-9e87-1a6f925a912a&#8217;,&#8217;justifycenter&#8217;)}}<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A Total Reward Statement calculates, assembles and visualizes the total value of an employee\u2019s compensation package in addition to an employee\u2019s basic salary. This can include:<\/p>\n","protected":false},"author":17,"featured_media":20593,"comment_status":"closed","ping_status":"open","sticky":false,"template":"tpl.news-post.php","format":"standard","meta":{"_acf_changed":false,"content-type":"","footnotes":""},"categories":[728,782],"tags":[732,786],"class_list":["post-20592","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-employee-benefits","category-total-reward","tag-employee-benefits","tag-total-reward"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.7 (Yoast SEO v27.2) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Total Reward Statement - Everything YouNeed to Know | Benify<\/title>\n<meta name=\"description\" content=\"A total reward statement calculates, assembles and visualizes the value of employees\u2019 total reward, above basic salary. 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