(And what to look for) 

More and more organizations are choosing to deploy Employee Reward Statements, sometimes known as Employee Benefit Statements. These are visually appealing documents that show employees how much their total compensation package is actually worth. And that’s often more than just their salary. Think of fringe benefits, retirement contributions, bonuses, and even perks like a fitness membership or workation.  

What we’re also seeing more and more is the emergence of the Candidate Reward Statement. This document offers applicants insight into what they can expect if they choose your organization. At a time when talents often have multiple offers to consider, you want to be able to make a personalized and attractively designed offer quickly.  

Benefits of a Reward Statement 

One of the biggest benefits of a Reward Statement is transparency. After all, many employees don’t know what their total compensation package entails exactly. By communicating this clearly and appealing visually, you help them understand the full value of their benefits. This can be especially helpful in industries where talent is scarce and your competitors are lurking. 

The pitfalls: what to look out for?  

While transparency is a great advantage, it can also be a disadvantage. For example, it can reveal that your offer is not competitive enough, or that inconsistencies or variations have crept into the terms of employment policy previously. This can happen in mergers and acquisitions, for example. Before introducing a Reward Statement, it is smart to critically review your terms and conditions of employment and improve or harmonize them where necessary. 

In addition, two things are crucial when implementing a Reward Statement:  

1. Choosing the right vendor: There are several software solutions on the market available. As stand-alone products, but often as part of a broader flexible benefits software package. Choosing the right vendor is important to ensure that the statement remains accurate and up to date. Consider maintainability: are changes easy and quick to implement in the system? Pay particular attention to the technical integration capabilities with your payroll system so that the correct employee data is always displayed. 
2. Good communication: Make sure the document is not overly complicated. Financial benefits, such as pension plans, can be difficult to explain specifically. If the information is not clear, employees may become frustrated and may not fully understand what their benefits are. In addition, provide a good introduction with an opportunity for employees to ask questions.  

In short 

An Employee Reward Statement can add a lot of value for both employers and employees. It creates transparency, increases satisfaction, and helps retain or bring in talent. So, a Reward Statement can have a positive impact on your organization.  

But as with any tool, there are pitfalls to avoid. Therefore, first take a critical look at whether your current terms of employment need improvement. Choose a supplier that takes care of all your worries and organize a good introduction with clear communication to all colleagues.  

Consultday can help you with this. Want to know more? Get in touch!  

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