Enhance End-of-Year Pay Conversations with Total Rewards Statements

It's almost 2025! Well, sort of. At least, some of us may be planning for the new year to turn its page in just three short months. Before we make it to 2025, how will you share with your employees how much they earned by working for your organization this year?

If you haven't yet considered using total rewards statements to explain total compensation to your employees, might I humbly suggest you are missing out on a huge opportunity to both educate and build trust with your talented workforce!

Total Rewards Statements (TRS) include information on all compensation received along with the monetary value of benefits, such as healthcare premiums, parking stipends, supply stipends, educational investments, and other compensation outside of their regularly achieved salary. 

Why a TRS can help employees

• Visually outlines the total costs or investments the organization is making in benefit packages on behalf of employees
• Supports understanding of their savings in benefit contributions which are paid for by their employer
• Provides a more holistic view of the various forms and types of compensation the organization uses to engage and retain its employees
• Helps employees make intentional and informed decisions about their career satisfaction based on a more complete picture of their total compensation, not just take-home pay

Positive impacts on the organization overall

• Explains and supports the employer’s Employee Value Proposition in financial terms
• Reinforces employer’s commitment to pay transparency in pay communications
• Creates a higher level of detail and context provided on total compensation than in an informal or non-standardized email
• Gives managers an opportunity to learn more about how their direct reports are compensated and the opportunity to have a more informed conversation around employee compensation
• Can support identification of underused benefits or unknown benefits available to employees, thereby increasing the likelihood the employee will use the benefit going forward

Collaboration opportunity for HR & Finance

• Generates an opportunity to cross-functionally partner on how different internal processes can complement each other for greater efficiencies and a more strategic approach
• Builds a deeper understanding of how Finance can support strategic decisions from HR based on knowledge of investments in benefits/compensation rates and how these are experienced/interpreted by employees
• Establishes a deeper understanding of how HR can support strategic decisions and proactively identify possible budget stressors or necessary investments (now or later) to plan for/react to

There are many ways and formats to communicate value with employees. Don’t miss out on an opportunity to educate your employees about their total compensation before the end of the year!

Did you know? Cascade members have access to a Total Rewards Statement builder in our Members Only area.

If you could use a little help with your organization’s statements, please contact us at compensation@cascadeemployers.com!