Total reward statements: How to maximise the potential? Insights into the added value of total reward statements in reward communication
Publication typeWhite paper
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AbstractThe whitepaper ‘Total Reward Statements: how to maximise the potential?’ is based on a quantitative and qualitative research project by the Centre for Excellence in Strategic Rewards. It offers an overview of the different aspects of the Total Reward Statement (TRS), based on the quantitative and qualitative results of a large-scale survey (N=193). Looking at the situation as is, 30% of our respondents offer a TRS to the entire workforce or to a part of the workforce. 82% of that group is (very) satisfied with the firm’s TRS. The main reasons for them to offer a TRS are to create employee awareness about the reward offering, to enhance appreciation of the reward package, and to shift the focus away from purely financial reward components to non-financial components as well. As an additional advantage, the TRS has a positive impact on attracting new recruits, retaining talents and engaging employees. Today, the majority of the TRSs are self-developed, are offered once a year, and are integrated in an online platform. The most popular reward components in a TRS seem to be base pay, bonus, company car, contribution to the pension plan, cost allowances, car allowance, home-work travel allowance, premium paid for hospitalisation insurance, disability insurance, guaranteed income insurance, long-term incentives and subscription to public transport. Possible drawbacks to implementing a TRS could be the time and monetary investment in the tool, the difficulties in data management, the fact that the TRS is a snapshot with a focus on the past, and the question concerning how far you can go with transparency. As for communicating about the TRS, it remains crucial to communicate regularly and creatively. As for the future, companies that are looking into implementing a TRS indicate that collaborating with a specialist provider is the preferred way to go. They would still opt for a periodical offering of the TRS and keep an online focus. Almost all of the respondents indicate that communication is unmistakeably one of the most important aspects in the TRS process. Based on examples from practice, there are 7 characteristics of a great TRS: • making the reward overview as visual as possible • keeping it short and impactful • adding tailored tips and information • showing a multi-year evolution • complementing it with a glossary • including the fairness aspect • providing the possibility to click through to receive additional information
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