{"id":20784,"date":"2023-11-22T13:37:09","date_gmt":"2023-11-22T13:37:09","guid":{"rendered":"https:\/\/benefex-dev.local\/en\/2023\/11\/22\/why-you-should-use-a-total-reward-statement\/"},"modified":"2023-11-22T13:37:09","modified_gmt":"2023-11-22T13:37:09","slug":"why-you-should-use-a-total-reward-statement","status":"publish","type":"post","link":"https:\/\/benifex.com\/en\/why-you-should-use-a-total-reward-statement\/","title":{"rendered":"Why You Should Use a Total Reward Statement"},"content":{"rendered":"<p style=\"font-size: 18px;\"><span style=\"color: #000000;\"><em><span style=\"font-family: arial, helvetica, sans-serif;\">\u2022 Most employees underestimate the value of their total reward and compensation<\/span><\/em><\/span><br \/><span style=\"color: #000000;\"><em><span style=\"font-family: arial, helvetica, sans-serif;\">\u2022 Employers lose money on unused benefits due to unawareness<\/span><\/em><\/span><br \/><span style=\"color: #000000;\"><em><span style=\"font-family: arial, helvetica, sans-serif;\">\u2022 Showing employees their true value leads to greater transparency and trust<\/span><\/em><\/span><br \/><span style=\"color: #000000;\"><em><span style=\"font-family: arial, helvetica, sans-serif;\">\u2022 Total Reward Statements provide employees with a complete overview of their entire reward package<\/span><\/em><\/span><br \/><span style=\"color: #000000;\"><em><span style=\"font-family: arial, helvetica, sans-serif;\">\u2022 Awareness of total reward leads to greater appreciation, retention and can be used as a powerful tool in recruitment efforts<\/span><\/em><\/span><\/p>\n<p><!--more--><\/p>\n<h2 style=\"font-size: 20px;\"><span style=\"font-family: arial, helvetica, sans-serif; color: #000000;\">When thinking about their compensation, it\u2019s common for employees to only think about their take-home salary. However, salary is only part of the picture and, as a result, employees are likely to be significantly underestimating the actual value of their rewards package.<\/span><\/h2>\n<p><span style=\"font-family: arial, helvetica, sans-serif;\">Today, we see employees demanding transparency from employers. This is great news for both parties as it creates awareness of total compensation for the employee and provides employers with an opportunity to show employees the true value of their investment. <\/span><\/p>\n<p><span style=\"font-family: arial, helvetica, sans-serif;\">As explained in the article <a href=\"\/using-technology-to-meet-employee-demand-for-transparency\" rel=\"noopener\" target=\"_blank\" style=\"font-style: italic;\">Using Technology to Meet Employee Demand for Transparency<\/a>, employees who work for organizations that are more transparent have a greater trust in management, are more committed to the organization and are more connected to the employer brand.<\/span><\/p>\n<p><span style=\"font-family: arial, helvetica, sans-serif;\">So, what\u2019s the best way to make employees aware of their total compensation? A Total Reward Statement.<\/span><\/p>\n<h3><span style=\"font-family: arial, helvetica, sans-serif;\">What Information Does a Total Reward Statement Include?<\/span><\/h3>\n<p><span style=\"font-family: arial, helvetica, sans-serif;\">In addition to an employee\u2019s basic salary, a <a href=\"\/what-is-a-total-rewards-statement-trs\" rel=\"noopener\" target=\"_blank\">Total Reward Statement<\/a> calculates, assembles and visualizes the total value of an employee\u2019s compensation package. This can include:<\/span><\/p>\n<ul>\n<li><span style=\"font-family: arial, helvetica, sans-serif;\">Employee 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;\">Bonuses<\/span><\/li>\n<li><span style=\"font-family: arial, helvetica, sans-serif;\">Vacation and sick pay<\/span><\/li>\n<li><span style=\"font-family: arial, helvetica, sans-serif;\">Childcare<\/span><\/li>\n<li><span style=\"font-family: arial, helvetica, sans-serif;\">Meal subsidies<\/span><\/li>\n<li><span style=\"font-family: arial, helvetica, sans-serif;\">Public transport compensation<\/span><\/li>\n<li><span style=\"font-family: arial, helvetica, sans-serif;\">Parking space<\/span><\/li>\n<li><span style=\"font-family: arial, helvetica, sans-serif;\">Flu vaccinations<\/span><\/li>\n<li><span style=\"font-family: arial, helvetica, sans-serif;\">Wellness programs (e.g. gym memberships)<\/span><\/li>\n<\/ul>\n<p><span style=\"font-family: arial, helvetica, sans-serif;\">Total Reward Statements can be presented as a printed document or digitized and made accessible via an <a href=\"https:\/\/www.benify.com\/solutions\/compensation-total-reward\" rel=\"noopener\" target=\"_blank\">employee portal or benefits administration system<\/a>. <\/span><\/p>\n<p><span style=\"font-family: arial, helvetica, sans-serif;\">What\u2019s more, employers can enable employees to access their digital Total Reward Statement via an app on their smartphone or tablet, so that employees can review their total reward anywhere, anytime.<\/span><\/p>\n<h3><span style=\"font-family: arial, helvetica, sans-serif;\">Using a Total Reward Statement encourages transparency, which assists organizations with:<\/span><\/h3>\n<h4><span style=\"font-family: arial, helvetica, sans-serif;\">Retention<\/span><\/h4>\n<p><span style=\"font-family: arial, helvetica, sans-serif;\">If employees are unaware of their total value, there\u2019s the risk they leave to work where they believe the grass is greener and where they think will be better compensated. However, when presented with a Total Reward Statement, employees can see every part of their compensation package. This transparency helps support retention.<\/span><\/p>\n<h4><span style=\"font-family: arial, helvetica, sans-serif;\">Trust<\/span><\/h4>\n<p><span style=\"font-family: arial, helvetica, sans-serif;\">Transparency and fairness around compensation helps build trust, which leads to employees feeling more connected to their employer, thus more likely to become a positive ambassador for the company.<\/span><\/p>\n<p><span style=\"font-family: arial, helvetica, sans-serif;\"><img decoding=\"async\" src=\"https:\/\/cdn2.hubspot.net\/hubfs\/2798830\/All%20Markets\/Blog%20images\/girl-checking-reward-statement-on-smartphone-outside.jpg\" alt=\"checking reward statement smartphone outside\" width=\"1100\" style=\"width: 1100px; margin: 5px 0px 0px;\"><\/span><\/p>\n<h4><span style=\"font-family: arial, helvetica, sans-serif;\">Awareness and Understanding<\/span><\/h4>\n<p><span style=\"font-family: arial, helvetica, sans-serif;\">Every employee seeks to be compensated fairly. Total reward statements are an effective way to create awareness of compensation and provide clarity around any questions or concerns about an employee\u2019s reward package. <\/span><\/p>\n<p><span style=\"font-family: arial, helvetica, sans-serif;\">Before introducing Total Reward Statements, Niels Kater, HR Analytics &amp; Application Management Specialist at Adecco, shares that creating employee awareness of total compensation was a challenge. \u201cIt was hard for us to make employees aware that it\u2019s not just about their base salary, but their secondary payment, and the total combined,\u201d Niels explains.<\/span><\/p>\n<p><span style=\"font-family: arial, helvetica, sans-serif;\">Today, after introducing Total Reward Statements via their employee portal, Adecco employees have a greater awareness and understanding of their total compensation. \u201cThe portal is the starting point for all our HR processes. We incorporated our benefits budgets and reward statements so that it would give employees a better understanding of their working conditions at Adecco\u201d, Niels shares.<\/span><\/p>\n<p><span style=\"font-family: arial, helvetica, sans-serif;\">Additionally, awareness leads to greater benefits appreciation and usage, which saves money on otherwise unused and wasted benefits. <\/span><\/p>\n<h4><span style=\"font-family: arial, helvetica, sans-serif;\">Recruitment <\/span><\/h4>\n<p><span style=\"font-family: arial, helvetica, sans-serif;\">Transparency around compensation is a powerful tool for attracting and recruiting new talent. Candidates can see the value of your offer and make an informed decision. If you are confident about your benefits offering and total compensation package, this is a wonderful opportunity to showcase it. <\/span><\/p>\n<p><span style=\"font-family: arial, helvetica, sans-serif;\">By visualizing your organization\u2019s total rewards strategy during recruitment exercises, onboarding processes or performance reviews, you will succeed in building a strong employer brand, making you a more attractive employer. It\u2019s a win-win.<\/span><\/p>\n<p><span style=\"font-family: arial, helvetica, sans-serif;\">Transparency and awareness of total compensation help contribute to a positive employee experience. If you\u2019re interested in learning more about creating an outstanding employee experience, be sure to download our e-book, <a href=\"https:\/\/info.benify.com\/employee-experience\" rel=\"noopener\" target=\"_blank\" style=\"font-style: italic;\">The New Employee Experience: How to maximise and optimise every step of the employee journey<\/a>.&nbsp;<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>\u2022 Most employees underestimate the value of their total reward and compensation\u2022 Employers lose money on unused benefits due to unawareness\u2022 Showing employees their true value leads to greater transparency and trust\u2022 Total Reward Statements provide employees with a complete overview of their entire reward package\u2022 Awareness of total reward leads to greater appreciation, retention [&hellip;]<\/p>\n","protected":false},"author":17,"featured_media":20785,"comment_status":"closed","ping_status":"open","sticky":false,"template":"tpl.news-post.php","format":"standard","meta":{"_acf_changed":false,"content-type":"","footnotes":""},"categories":[724],"tags":[726],"class_list":["post-20784","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-employee-experience","tag-employee-experience"],"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>Why You Should Use a Total Reward Statement<\/title>\n<meta name=\"description\" content=\"If employees look only at their salary as the only form of compensation, they\u2019re likely to be underestimating the true value of their compensation package.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, 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