What is a total reward statement?
It is a document outlining the full value of the benefits package an employee receives, including salary, pension and shares. It can also include data about non-financial benefits, such as health and wellbeing and workplace training.
Where can employers get more information?
See the Employee Benefits website: bit.ly/1eh1qgW
Who are the main providers?
Most reward consultancies and benefits providers offer a total reward statement (TRS) service, including: Aon Employee Benefits, Benefex, Fair Care, Grass Roots, Hay Group, Jelf Group, Edenred, Mercer, NorthgateArinso, People Value, Personal Group, Reward Gateway, Staffcare, Strait Logics, Thomsons Online Benefits and Vebnet.
They can also help to engage employees in their benefits, and educate them about the value of particular perks they receive, such as a company car or pension.
A TRS includes the basic elements of pay, benefits, allowances and incentives. No benefit is too small to be included in a TRS, so enhanced maternity or paternity leave, flu jabs and employee assistance programmes could be included, for example.
However, quantifying the value of less traditional benefits, such as workplace training, holiday entitlement and savings made through voluntary benefits plans and salary sacrifice arrangements, may not be straightforward.
TRS providers can produce bespoke statements for employers, and offer them creative documentation to communicate information to staff. Helping employees to understand all the things their employer is doing for them can also boost retention.
Historically, TRS were four- or five-page documents that were posted to staff, but these are now available as a shorter paper document or in electronic format.
Providers recognise the advantage that online channels have over paper-based statements: while many employees may not have access to the information online at work, they can use technology at home such as smartphones, tablets or their own computers.
Online statements also mean employers are able to measure how employees are interacting with the information, which, in turn, enables them to continually assess the process to improve if necessary.
One of the biggest attractions of this format is the ease with which online TRS can be integrated into organisations’ online benefits platforms. This enables employees to access as little or as much information as they require, and to access modelling tools to track, for example, their projected retirement income or the investment performance of their share plan.
For employers that provide a paper statement, timing can be a critical factor. A key consideration is using statements as a tool with which to counter the effects of negative news, such as pay freezes. The beginning of the year, when staff may be budgeting for the 12 months ahead, can also be a good time for employers to consider introducing TRS.
Simple statements can range from £2 to £7 per employee per year, while more sophisticated online formats can cost as much £100 per employee per year.
- 68% of employers use digital communications to engage staff with benefits (Source: Employee Benefits/Xerox HR Services Benefits research 2016, June 2016)
- 71% of employers believe that their benefits strategy will change to include better or more targeted communications of benefits (Source: Employee Benefits/Xerox HR Services Benefits research, June 2016)
- 38% include share schemes in total reward statements for staff (Source: Aon’s Employee benefits and trends survey, November 2015)
- 85% include bonus information in total reward statements for staff (Source: Aon’s Employee benefits and trends survey, November 2015)