TOTAL REWARDS STATEMENT  

A total rewards statement is a personalized statement communicating the overall value of an employee’s compensation package. The statement summarizes financial and non-financial rewards, providing a detailed breakdown of an employee's pay, benefits, and other perks, offering a comprehensive view of their overall compensation value.   

The total rewards statement gives employees a transparent understanding of their total compensation package, promotes employee appreciation, and assists in retention efforts.   

Why Create a Total Rewards Statement  

Enhanced Understanding of Employer Value 

It demonstrates the organization’s commitment to its employees' well-being and growth.  

Improved Employee Engagement 

Highlighting the various rewards and benefits can assist with an increase in employee satisfaction and loyalty.  

Increase Transparency 

It helps employees understand the full value of their compensation package beyond just their salary or annualized rate.  

Competitive Advantage 

Outlining the various forms of cash and non-cash compensation can make a job offer more attractive, helping to attract top talent.  

Reduced Turnover 

Providing employees with the true value of their compensation can help retain employees and reduce attrition.   

What Should a Total Rewards Statement Include 

• Base Salary: The regular pay or annual wage an employee receives.  
• Overtime Pay: Any overtime for non-exempt employees. 
• Bonuses and Incentives: Inclusion of any bonuses, commissions, or incentives that are provided for achieving specific goals.  
• Equity Awards: Stock options and/or grants that allow employees to purchase company stock.  
• Health Benefits: Coverage for medical, dental, and vision expenses.  
• Retirement Plans: Contributions to retirement accounts and/or pension plans. 
• Paid Time Off: Vacation, sick leave, and holidays.  
• Other Perks: Professional development or training expenses (tuition reimbursement), Employee assistance programs, wellness programs, commuter benefits, clothing or tool allowances, etc.  

Total reward statements are a great tool to show employees the true value of what a company invests in annually. It promotes employee retention, provides transparency, demonstrates value proposition, and helps attract talent.  

Compensation Resources has developed a platform to produce Total Rewards Statements for our clients.  Contact us to learn more about how we may assist you.