20 Apr Quick HR Tips: Total Rewards Statement Example
Even for the most experienced HR manager or benefits specialist, it’s always a good idea to make sure that your total rewards statement is in line with employee expectations and best practices. While one company’s statement can vary significantly from another’s, this total rewards statement example provides a quick overview of the foundations so you can tell whether there’s anything significant you’re leaving out.
According to the Society for Human Resource Management, these are a few of the most critical components to include on your employee benefits statements:
- Paid Leave
- Medical Benefits
- Disability & Life Insurance
- Retirement Benefits
You can also choose to include information about educational assistance programs, if applicable, and relocation expenses. Flex spending and employee assistance programs are some additional items you may wish to consider.
Sample Total Rewards Statement
Your total rewards statement might look something like this:
Annual Base Salary:
You can choose to break down total compensation further by illustrating the employer benefits cost versus the employee’s annual income to show which percentage of the benefits make up an employee’s total rewards. Incorporating all of these elements into your total rewards statements will give employees a thorough overview of their benefits in relation to their base salary.
Communicating Total Rewards
Keep in mind that while creating a total rewards statement that’s easy to read and understand is important, it’s equally critical to make sure that total rewards are being communicated effectively. Towers Watson research shows that employees underestimate the value of their total rewards package by up to 70%. Management teams should have regular discussions with employees about total compensation to build morale and develop a greater sense of transparency.
To make this communication simpler and more effective, busy managers can use total reward statement software. Tools such as benefits calculators and user-friendly cloud-based portals can make it easy for everyone to access all of their rewards information in one place, which facilitates simplified, timelier total rewards communication between management and their employees.
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