Total reward statements put a value on the benefits provided to each employee in the form of an individual statement, either in a paper format or online. They essentially recognise that pay is not the only factor that helps motivate staff. They should include values for tangible benefits such as pensions, shares and healthcare perks, as well as reference to intangible benefits such as flexi-time or a staff canteen.
It is worth using the statement to remind staff of the value of a benefit they would be entitled to in the future if they complete the requisite period of service as it could help reduce turnover.
Total reward statements have traditionally been used to show staff the value of the benefits they have received over the previous 12 months. Some employers, however, are using statements to demonstrate to staff what they stand to gain if they remain with their organisation during the year to come and make full use of the benefits on offer to them, for example, by making maximum pension contributions or taking up their full share allocation under employee share schemes.