Why use a Total Reward Statement?
All employees seek fair remuneration packages for their work. There are countless services and articles out there showcasing how to be paid what you’re worth, or how to react if you don’t feel valued. Similarly, there has been plenty of research around the topic of employee reward strategies and their links to employee engagement, all of which display that employees who feel like they aren’t awarded appropriately for their work are less productive, less engaged and more likely to leave.
Total reward statements are an extremely simple, but effective, way of helping to overcome an employee’s potentially negative perception of their reward package. The concept of the reward statement is to highlight every benefit of an employee’s reward package, both financial and non-financial, including bonuses, benefits and holiday entitlement. This offers both the employee and employer an easy to reference tool where they can quickly quantify what they are receiving from their employer, much of which is often overlooked.
This is particularly effective if your business operates on a ‘low-pay-high-benefit’ system, where you might pay underneath the average wage but in exchange, offer significantly better benefits than other organisations within your sector.
Ultimately, the addition of a total reward statement is an excellent method of improving employee engagement and retention. By systematically and methodically working through the benefits, it becomes clear just how much you are investing in your staff, building trust in the employer-employee relationship. Similarly, with a more accurate figure for how much the business thinks they are worth, employees are more likely to stay with you, particularly if the benefits help your remuneration and reward scheme exceed the value of most other organisations.
If you are struggling with low staff morale, motivation, retention or engagement, total reward statements are an easy place to start that will have a large and noticeable impact - as long as your reward scheme is appropriate.