15 Sep Total Rewards Statements – Add Value & Improve Retention
Total rewards statements (or total compensation statements) show the real (or true) value of the compensation package an employee receives. This statement captures a list of, but not limited to, the following items:
- Basic Wage, Overtime Compensation, Commissions
- Holidays, PTO Days, Sick Leave Days, Stock Options Plan
- Dental Insurance, Medical Insurance, Childcare Program, Tuition Plan, Meal Plan etc.
Why use Total Rewards Statements?
So what exactly is the purpose of a total rewards statement?
More and more companies are realizing that monetary compensation alone is not enough to retain their top talents and they have begun to use other forms of benefits to engage employees. A total rewards statement is implemented to provide employees with the reassurance that they need to fully understand their compensation package.
How to Create Successful Total Rewards Statements
A successful total rewards statement is definitely one that is able to convey the message of the company to the employee and help to boost his/her engagement and motivation level. To achieve this, we need to ensure that the total rewards statement is communicated to the employee correctly and fairly. With effective communication and education, the value total rewards statements bring to the table jumps to a whole new level.
Here are some ways which effective communication and education can be carried out:
- Inform employees of upcoming statements to create awareness.
- Include a letter attached to the statement to carefully detail what each component means
- Set up webinars and training to help employees review their statements
- Ask for feedback from employees so that the company can improve on each version
- Set up regular one-on-one meetings with the managers for employees to voice out their opinions individually
Of course, another excellent way to generate total rewards statement is via compensation software. Compensation software allows for higher level of automation and allows employees to easily retrieve their most updated statement whenever they want. This helps to keep employee focus on their task at hand, instead of constantly worrying about the compensation package they will be receiving.
HRsoft – The Total Rewards Software Leader
HRsoft is a leading provider of total rewards solutions for mid to large sized employers. For more information on our Total Rewards Software, REWARDview™ click the button below!