total reward statements: what should i be aware of?

• Deciding on the correct calculation to be used for certain benefits. There are two main approaches to valuing benefits.

1) Based on the actual cost to the employer. We would advocate use of the first approach in nearly all circumstances.
2) Based on the market value to the employee (here the cost of a benefit is shown as how much it would cost them as an individual to go out and purchase the benefit as an individual).

• Employees may become aware of benefits that are available to them that they may not have taken up leading to a rise in overall costs;
• Allocating some benefits a value can be very difficult.