Posted in:Total Rewards
When it comes to total remuneration, employers and employees are often guilty of placing too much emphasis on base salary. This results in other valuable components of the total rewards package being overlooked, which can have negative consequences for retention and employee morale.
One key tool to help ensure employees understand the various components of their compensation package is a Total Rewards Statement. This is a personalized document that clearly outlines the various elements of a compensation package in a clear and easy-to-understand manner.
Oftentimes, employers forego preparing Total Rewards Statements for their employees as it can be time consuming and challenging to quantify certain non-monetary benefits. However, these Statements can play an instrumental role in ensuring that employees have a full view of their total compensation; understanding the total compensation picture can go a long way toward helping employees to feel fairly compensated (and thus valued by the organization). It also gives the employer the full understanding of labour costs to make the appropriate budgeting decisions.
Preparing a Total Rewards Statement
An ideal time of year to prepare a Total Rewards Statement is following the Annual Review Cycle (after pay increases and bonuses are approved). That way, employees can see the changes in their rewards package.
Start with listing base pay, then go on to include the following, as they apply to each employee:
• Bonuses – include a breakdown of each type of bonus (short term incentives and long term incentives) that is awarded during the review cycle
• Insurance Benefits – Medical, Dental, Vision, Life, AD&D (accidental death & dismemberment), Critical Illness, Short Term Disability, Long Term Disability, and Travel Medical Insurance. This can be further broken down to show employer vs. employee premiums for companies that run a cost-sharing benefits program
• Employee Assistance Programs (EAPs)/Family and Employee Assistance Programs (EFAPs)
• Long Term Group Savings Programs: Registered Retirement Savings Plans (RRSPs), Non-Registered Savings Plans (NRSPs)
• Other Perks: the possibilities are endless and can include: Transit Subsidies, Daycare Subsidies, Free Breakfasts/Snacks, Employee Events, Tuition Assistance, Professional Dues, etc.
A well-presented Total Rewards Statement is a valuable education and information sharing tool to help boost motivation, improve employee morale, and reduce costly employee turnover. Your Honiva HR Services Consultant can help you to create Total Rewards Statements that clearly and accurately convey the value of your Total Rewards Package.
Here to Help
We can be reached for a free confidential consultation at +1-403-470-5350 or [email protected] For further details on additional HR service offerings, please visit our website at https://www.honiva.com or follow along for more informative tips by joining us on LinkedIn, Facebook, Twitter, or Instagram. We also run a complementary LinkedIn and Facebook group called “Insights by HonivaHR” where you can access free information on how to become an effective and legally compliant employer. Or you can sign-up for our quarterly newsletter to have help sent straight to your inbox from our company homepage.