Lack of reward is a key issue within UK workplaces. Could the implementation of Total Reward Statements help organisations move the dial?
Foreword by Lydia Collins
Ask someone how much they earn and it’s likely they’ll be able to tell you. Ask them how much their organisation invests in them, however? Chances are, you’ll be greeted by bewildered faces. Because they probably don’t know.
This isn’t to say that their employers don’t invest in them. Rather, there may be a lack of visibility over this investment. And with just 37% of UK employees believing they receive a fair share of the profits made by their organisation - despite the majority agreeing they are fairly paid for the work they do - lack of visibility may be more prominent in UK workplaces than first thought.
Total Reward Statements offer an intuitive and digestible way of communicating employee investment, making them an ideal choice for HR Leaders looking to increase visibility in this area. Read on for an overview of this underutilised tool.
What is a Total Reward Statement?
A Total Reward Statement, sometimes referred to as a TRS, is a statement given to employees breaking down the ‘total reward’ package earned for being a part of the organisation. This statement details both the tangible and intangible ways a company funds their employee experience – beyond just salary.
In a world where wage is the main form of remuneration, other types of employee investment can easily be overlooked. HR Leaders may use Total Reward Statements to emphasise the true investment companies make in their employees.
We asked Jonathan Mercer, Human Resources Director at Great Place To Work UK, for his opinion on Total Reward Statements and why he chose to implement them within our organisation:
"We’re really proud of our Total Rewards Package because it shows our team how much they’re truly valued beyond just their salary. Pay is, of course, important, but when you look at everything we offer—bonuses, commissions, healthcare, extra holiday, wellbeing programmes, and special recognition for outstanding achievements—it adds up to something much more meaningful.
It’s about creating a workplace where people feel genuinely supported, not only in their roles but in their lives outside of work too. We want our team to know that their hard work and dedication aren’t just noticed but are rewarded in ways that benefit them directly. For us, it’s not just a job; it’s about ensuring everyone has the opportunity to thrive and feel appreciated for everything they bring to the table."
What should be included in a Total Reward Statement?
The level of detail that a Total Reward Statement breaks down into differs from one organisation to the next, with some companies choosing to group benefits together, and others breaking down each benefit in detail.
Areas you may expect to find in a Total Reward Statement include:
- Base Salary, Bonuses, and Commission
- Pension Contributions
- Learning & Development Costs
- Benefits (Health Insurance, Discount Platforms, Wellbeing Allowance, etc.)
- Social Events Cost
- Travel Allowances
- Office Rent and Utility Costs Per Person
- Equipment Costs (for Home Working, Reasonable Adjustments etc.)
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What Types of Total Reward Statements are there?
Whilst there is no set standard for how Total Reward Statements should be approached, most statements fall into one of two categories: Averaged Statements and Bespoke Calculations.
Both statement types have their pros and cons, and it’s up to the company to decide which option best meets their needs.
Averaged Total Reward Statements
Averaged total reward statements provide an overview of investment for a group of employees. These statements may be produced by team, department, function, hierarchy, or even for the whole company.
Averaged statements are faster to create than bespoke statements, making them an efficient choice for time-strapped HR teams. However, these statements can be quite vague, and may not convince some employees of their investment the way a bespoke calculation would. They could also be influenced by differing salary levels in averaged groups (i.e. team) and may be seen as inaccurate.
Bespoke Calculated Total Reward Statements
Bespoke calculated total reward statements provide employees with precise information of what they receive from the company as an individual.
By providing this level of detail, employees receive a more accurate picture of their total reward. This is more likely to make a greater positive impact on the individual and be viewed as trustworthy in comparison to an averaged statement.
However, bespoke calculated statements may invite comparison between individuals – something that could cause disgruntlement if statements are not seen as equitable. Bespoke statements are also more time consuming to produce than averaged statements.
Total Reward Statement Examples
A pie chart is generally agreed to be the most intuitive way of presenting a Total Reward Statement. Below you’ll find two examples of what a Total Reward Statement could look like:
Example One: Total Reward Statement example for employee John Doe for 2024. Here most of the benefits are listed as individual items rather than conflated. John here can see that his base salary of £30,000 is actually only 60% of his Total Reward Package, which totals over £50,000
Example Two: Here instead of being listed separately, John’s benefits are all conflated together. This makes for a neater graph and allows you to add in benefits that may be tedious to list out separately (like a £12 a year EAP cost). However, it is less informative than having all benefits listed separately and may create room for misinterpretation.
To sum it up...
Total Reward Statements offer HR Leaders an easily digestible way of presenting the investments organisations make in their people. By improving visibility in this area, employers can improve employee opinions surrounding reward and profit sharing.
And with data leaning towards reward as the lowest performing area of the UK employee experience, there’s never been a better time to act.
Sources: GPTW UK 2023 Population Study, GPTW Total Reward Statement Guide
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