Speak to an expert +44(0)1733 391377

Toggle Sidebar

Amid the constrained pay predictions that fall below inflation this year, we are receiving increasing enquiries about how customers can engage and communicate the value of the overall investment they make in their people that goes beyond pay.

business meeting over coffee

Why offer Total Reward Statements?

Employee benefits packages are one of the biggest incentives you can offer your people and help to attract candidates. However, it is a challenge to get the right package in place and to maintain momentum through your internal communications.

Total Reward Statements can show the value of the total pay and benefits package that you offer to employees. We help to design and deliver clear, concise and visually appealing Total Reward Statements that can:

  • Increase employee engagement: as employees are equipped with the tools to understand the rewards you provide as an employer, understanding the true value of their reward package.
  • Increased take-up: as employees become more aware of the range and details of benefits available to them, this increases the opt-in rates for the various options available to them.
  • Demonstrate non-financial benefits: this shows employees the total value they derive from their employer that covers both financial and non-financial elements, such as gym memberships and company cars.
  • Strengthens your Employer Value Proposition: in the long-term, this understanding not only increases opt-in, but also bolsters an employers’ value proposition to the wider market. Once employees understand the full value they receive from working at the organisation, this positive experience translates into greater employee engagement and a strong employer value proposition to attract prospective candidates, driving recruitment strategies.

How to produce an effective Total Reward Statement

We have years of experience in producing statements for organisations to communicate the reward package they offer. Here we outline the key considerations when planning the launch of your Total Reward Statements.

1. Select a method to suit your culture

Your chosen method of delivery will depend upon the established behaviours of your workforce. Some organisations choose to use an add-on to their existing HR tech platforms to make their statements available online as part of a benefits portal. Beyond buying and selling holiday and purchasing childcare vouchers, some benefits platforms act more like an e-community, encouraging employees to continuously monitor and interact with the system through flexible benefits and recognition schemes that are incorporated. Others face barriers with archaic systems that few log-in to, so choose to circulate printed hard copies to create a greater impact.

Reward strategy top tips

2. Correctly brand the statement

Your statements should reflect your brand as an official form of communication from your organisation. In terms of format and messaging, this needs to reflect the correct tone of voice and brand guidelines. We will often work closely with communications or marketing departments to design the statements as an important tool to drive employee engagement.

3. Highlight all reward elements

Statements should include all cash elements including salary, bonus, overtime, shares and pension as an annual figure. This can be very powerful, particularly in sales environments to show the potential income available for meeting targets and have a positive effect to motivate, retain and engage the individual if all reward elements are outlined in one place. Managers can produce these if they think certain members are at particular risk of being recruited elsewhere – showing the true financial value of what they receive as a powerful incentive to stay for their market-leading reward packages.

There is no shame in promoting all the reward elements that you provide to your employees and being as transparent as you can. Organisations are often tempted to exclude non-financial elements that are difficult to quantify. However, by leaving out this detail, it undermines the true value that employees receive from their full rewards package. We often include a glossary/explanatory section as part of the statement – describing a subsidised canteen or free car parking. Going beyond details of monetary benefits to underline the intrinsic benefits to which values might not be easily attributed, such as holiday entitlement or training or free fruit and coffee, can be just as effective.

4.Consider initiatives that reflect key organisational values

Many employers focus on the value of their culture – such as specific wellbeing initiatives on offer to employees to free fruit, volunteering days and bikes-for-work schemes to show how they as the employer care for their employees. Certain industry sectors place greater emphasis on some reward elements compared to others, such as a car provision being widely offered within the construction industry. This also addresses different generations of employees who might value different benefits, appealing to as much of the workforce as possible.

5. Include graphs and imagery

It may sound obvious, but statements made purely of text and numbers is likely to deliver less impact than those which highlight the benefits beyond base pay in a visually appealing way. Include branded pictures to brighten statements and a graph to highlight to employees that they do not just receive a salary.

6. Timing

This varies from organisation to organisation – although many choose to produce and distribute statements to accompany the pay review for maximum impact.

7. Plan ahead

Do not underestimate the time and resources required to produce Total Reward Statements. To maximise engagement and for the launch of these statements to succeed, they must be embedded in all employee-related aspects of the business which takes time to map out. Designing, producing and distributing the statements takes time and we can help to minimise the impact on internal resources.

Looking to introduce or review your Total Reward Statements?

We individually design your Total Reward Statements to reflect your corporate needs and brand values, working closely with you to design and develop the statements. The skills and resources to create Total Reward Statements are not always readily available on top of business as usual or deploying people more effectively to other areas internally. Therefore, we often help with our resource and expertise to bolster communication of the complete reward package to employees.

Map the employee journey and use Total Reward Statements as a recruitment tool

To be an effective tool in an employer’s recruitment, retention and engagement strategy, statements must be positioned to fully outline the entire reward provision and be communicated in the most effective way. The outcome will often depend on the organisation and its workforce demographic.

Ensure that staff are given the right messages about their entire reward provision at each stage. From recruitment through to job offer, pay review and promotions – each milestone should be an opportunity to educate employees on their Total Reward Statement. We can supply template tools which enable you to present a Total Reward Statement to prospective employees, outlining the reward package they would receive, boosting engagement from the outset. Supplementary sessions could be offered to educate employees on their benefits, particularly around financial wellbeing and making sure they understand the corporate discounts and tax or national insurance advantages of employer-provided benefits.

What does a Total Reward Statement look like?

Our bespoke solutions customise the best practice template to reflect the organisation’s branding, the full range of benefits and the variations according to employee job level. With greater transparency and awareness about the benefits on offer, employees have greater appreciation of the investment being made by their employer.

Get in touch

If you think your company could benefit from introducing Total Reward Statements, contact us today to talk through your options and how you could implement stronger communication around your pay and benefits.

Help your employees to see the value they derive from working for you and the investment that you make in them as an individual. Be as honest and clear about how you value your staff – this transparency will be rewarded and remembered by employees who have renewed motivation.


Related Articles

Read More
Research, Insights and Publications

5 ways to improve employee wellbeing in 2022

Developing a strong emphasis on employee wellbeing strategies has been accelerated by the pandemic ...

Explore
Read More
Equal Pay

Spotlight on: Equal Pay Audits

Equality and fairness are increasingly at the heart of organisational purpose. At Paydata, we are fo...

Explore
Read More
Research, Insights and Publications

Horizon scanning for HR professionals – what’s in store for 2022?

Happy New Year from all of us at Paydata. As fears of Omicron impacted employer confidence ahead of ...

Explore

Stay up to date

Sign up for briefings on pay benchmarking, salary surveys, reward strategy and statistical updates.

sign up for updates

© Paydata Ltd 2022 All rights reserved.
Registered in England no: 3632206
VAT no: 728 0808 28

Paydata Ltd, 24 Commerce Road, Lynch Wood, Peterborough, Cambridgeshire, PE2 6LR