Consider implementing backstitch's Total Rewards Statement next year.
Many employers are now turning towards total rewards statements as a way of providing transparency to their employees in the pursuit of gaining and maintaining quality talent.
Components for Creating a Total Rewards Statement
Your total rewards statement should clearly outline the value that your company will provide to that employee. Your goals of your total rewards statement are to attract and retain, so keep these in mind during the building process. While not every company needs to have each of the components listed below, they will provide you with a good starting point to access elements relating to employee services.
Financial Rewards: Actual monetary value that an employee would receive. This would include wages for hourly and salary employees, commission payments, or bonuses.
Benefits Rewards: Healthcare-related benefits that would be paid on behalf of the employee. Examples would include medical, dental, vision insurance, insurance and retirement investment plans.
Non-wage Rewards: Rewards that are not paid to an employee in cash. This could include the equipment that employees get to use (e.g. laptop, tablet, mobile phone), tuition assistance paid to the institution, charity gift matching, food and entertainment discounts, company paid time off, paid volunteer days, wellness incentives, employee resource or paid leave.
In your own total rewards statement, you might not have these distinct sections. But, you will want to ensure that you give your employees a complete view of the annual value of their compensation, as well as their benefits.
Typical Total Rewards sections include:
Allows Your Organization to Become a Company of Choice
Employees deserve and often appreciate having a voice within the company they are an employee of. With a total rewards statement, you are making your employees aware of the choices that are available to them. Not only does this help employees feel a sense of understanding and belonging, it also allows them to have access to personalization. Transparency allows employees to determine where their payment stands versus just taking into consideration their salary or hourly rate. This can help employees feel a sense of commitment and dedication to their place of employment.
Showcases The Value of The Company Provides Connection
A total rewards statement helps an employee or potential employee see the value of working for your company, as well as influences their overall perception of the company. When an employee sees the value of the relationship for what it is, clearly laid out in front of them, they will feel more connected to that organization and those they work with. The total rewards statement will not only help to provide transparency, but it will also help to reduce reliance on HR teams to answer many of the questions that employees typically have about their pay and benefits.
Highlights Your Company’s Investment in Your Employees
Employees and potential employees want to feel valued within a company. They want to work for a company that understands what they have to offer. A total rewards statement helps to act as an “eye-opener” for employees to truly understand the investment that a company is making in their employees. This can allow employees to feel a sense of accomplishment, appreciation, and loyalty.
Implement your Total Rewards Statement
backstitch provides a customized, secure, digital TRS solution that is available online and accessible via an internet web browser or mobile app, and downloadable file. If you are a customer that already has the enterprise solution, talk to your Account Manager to learn more.