total reward statements: why introduce them? 
 

The reasons why a growing number of employers are introducing total reward (or total remuneration) statements include:

  • They want to leverage more value from the investment they are making in providing employee benefits; 
  • To give employees complete clarity on the benefits that they receive and their tangible value; 
  • To encourage employees to think in terms of their total remuneration rather than just their base salary “plus benefits”. So when an employee compares their remuneration package with a competitor organisation they are not just comparing base salaries;
  • To act as a precursor to the implementation of flexible benefits. In this way employees become familiar with the concept of pricing their benefits.

 
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Printed: 06 January 2009