How to use total reward statements to engage employees?

Reward statements are an underutilised yet straightforward method of helping employees quantify the benefit of your business’ reward strategy.

The following is a short guide to highlight everything you need to know about Total Reward Statements, including what they are, why you should make use of them, and how to effectively execute them into your existing rewards strategy.

What is a Total Reward Statement?

A total reward statement is a personalised document which is used to outline the rewards an employee has received from their employer over a set period of time.

Total Reward Statements are designed to highlight everything that the employee has benefited from, both financially and non-financially, as part of their overall reward and employment package. For many employees, this is an extremely simple way of showing the true value of your business reward scheme.

Why use a Total Reward Statement?

All employees seek fair salary packages for their work. Total Reward Statements are an extremely simple, and effective way to help overcome an employee’s potentially negative perception of their personal reward package.

The concept of the Total Reward Statement is to highlight every benefit an employee receives and details their personal recognition package on both a financial and non-financial level. The Total Reward Statement can include information such as bonuses, employee benefits, holiday entitlement, and more.

This offers both the employee and employer an easy-to-reference tool that can be used to quantify everything on offer to the employee – much of which is often overlooked by both employee and employer when not highlighted clearly.

The following are some tips and tricks that will help an organisation provide a Total Reward Statement, further improving work-life quality for their employees:

• Paper vs Online Total Reward Statements

As an employer, you will need to decide whether to go with paper or electronic Total Reward Statements. Some employers feel that many employees like to log-in and see their statements online, making it easier to access on the go or when working from home. Paper versions are also helpful for a larger employee base, and can be distributed at the same time as paper payslips, for example.

If you are seeking to install a digital reward system, then it is highly recommended that you get in touch with a reputable employee reward firm that has been in the business for the longest time offering global digital reward solutions to businesses.

• Comprise Many Reward Elements as You Can

To make the most of a Total Rewards Statement, it makes sense to include as many elements as possible that highlight the additional benefits your employee is receiving.

Sadly, many organisations often leave some reward elements of the statement if they are difficult to quantify financially. However, businesses can address this issue by including a glossary/descriptive section as part of the reward statement, e.g. flagging a discounted canteen or free car parking space.

In conclusion, these are some of the ways to use Total Reward Statements to engage and inform employees.