Total Reward Statement: a clear and centralised view of your total compensation

A Total Reward Statement (TRS) is the solution for creating clarity around employee benefits. It provides a single, comprehensive overview of what employees truly receive – from salary to financial and non-financial benefits. What is a Total Reward Statement, and why is it a game changer for your organisation?

At Alleo, specialists in employee benefits, we believe that a TRS is the key to transparency, satisfaction, and engagement in the workplace. In this article, we explain how a TRS works, the benefits it offers, and practical tips to get started.

What is a Total Reward Statement?

‍A Total Reward Statement is a personalised overview that gives employees insight into the full (financial) value of their total reward package. It goes beyond just the base salary, including all additional benefits that contribute to employee well-being and engagement.

The success of any reward package depends heavily on communication with employees. Only when employees understand what they are entitled to and why these benefits are offered, you will see impact on benefits investments. In today’s competitive job market, effectively communicating the total value of your benefits package is essential.

What does a Total Reward Statement include?

‍A well-constructed TRS provides an overview of:

1. Salary and bonuses
   The base monthly salary and any performance-related bonuses.
2. Benefits
   Pension contributions, holiday pay, leave arrangements, and insurance.
3. Tax-efficient benefits
   Examples include bikelease contribution, health insurance contributions, or gym memberships via tax schemes.‍
4. Non-financial benefits
   Training budgets, office lunch, wellness programmes, and work-life balance support.

In short, a TRS shows employees the full extent of their rewards, including key benefits that are often overlooked.

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Why is a Total Reward Statement important?

‍Many employees struggle to grasp the full scope of their reward package. This is often due to fragmented information, which is spread across multiple systems, documents, and processes. For instance, payroll details, pension contributions, and other benefits are typically stored in separate HR tools, while non-financial perks such as training budgets or wellness programmes are often poorly communicated. This lack of clarity makes it hard for employees to see the full value of what they receive.

This lack of transparency can lead to:

• Lower appreciation of the employer: Employees may not recognise the value of their benefits.

• Higher turnover intentions: Employees who believe their benefits are limited are more likely to look for other job offers.

• Low engagement on benefits: Valuable investments in benefits often go unnoticed.

How does a Total Reward Statement solve this?

• Creating transparency:
  Employees gain insight into their total reward package, including less visible benefits such as pensions and training budgets.
• Enhancing appreciation:
  Organisations with transparent benefits packages report 25% higher employee satisfaction, according to Mercer research.‍
• Encouraging engagement:
  Employees in companies using TRSs are 30% more likely to use the benefits offered, as shown in Benify research.

How to create a Total Reward Statement?

With the right approach and tools, creating a TRS is straightforward. At Alleo, we support organisations with these five simple steps:

1. Collect data
   Integrate information from payroll systems and HR tools.
2. Personalise the statement
   Tailor each TRS to the individual employee.
3. Use visuals
   Graphs and charts help make complex data more easy to understand and engaging.
4. Communicate proactively
   Introduce the TRS during onboarding or performance reviews.‍
5. Evaluate and improve
   Gather employee feedback to refine the TRS over time.

Frequently asked questions about TRS

What is the purpose of a Total Reward Statement?

‍A TRS helps employees understand the full value of their reward package, increasing appreciation, engagement, and satisfaction.

How often should a TRS be provided?

‍Ideally, once a year – for instance, at the start of the fiscal year or during review discussions.

Is a Total Reward Statement suitable for every organisation?

‍Yes, both small and large organisations can benefit from a TRS. It helps clarify the value of benefits and communicate them effectively.

How does Alleo support Total Reward Statements?

‍At Alleo, we help organisations create tailored Total Reward Statements. With smart tools and integrations with payroll systems, you can easily provide employees with personal, comprehensive, and visually appealing overviews.

Our approach includes:

• Integrations with existing HR tools.
• User-friendly dashboards and reporting features.
• Professionally designed statements with clear visuals.

Start with a Total Reward Statement today

‍Curious how a Total Reward Statement can strengthen your organisation? At Alleo, we make it simple to offer transparent and attractive employee benefits. Get in touch and discover how we can help keep your employees satisfied and engaged.

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