TRS can also be used to communicate the value of less tangible benefits, such as learning and development and flexible-working arrangements, as well as, for example, enhanced parental leave and pay, and employee assistance programmes.

The idea that employees value different benefits at different stages of their career has become one of the cornerstones of the modern benefits proposition, and many employers are moving from fixed packages to more flexible offerings built around an employee value proposition (EVP).

TRS are becoming more important for employers looking to offer employees a joined-up, coherent EVP. This is a direct result of the current economic climate, characterised by several years of low or no pay increases, rising insured benefits costs and deferred retirement, which has forced employees to become increasingly cash-focused.

With pay consistently cited as one of the top engagement drivers for employees, the suggestion is that many staff have lost sight of the full value of their total reward package.

Communicate benefits enhancements

Organisations that are planning to make changes to their benefits proposition can use TRS to clearly communicate any new elements and enhancements. The statements can also be a useful platform to show staff the extra investment being made by their employer.

Numerous providers in the TRS market can create bespoke statements for employers, and, using developments in benefits software and technology, offer them greater choice in how they communicate TRS information to employees.

For example, the latest technology platforms enable TRS to become more of an online portal providing staff with information about the total value of their package, as well as financial education and modelling tools that enable them to see the value of their reward in the context of their personal finances.

One of the latest trends in employee communications is the use of mobile devices, which enable staff to take as much information from their TRS as they require, with real-time information on the value for their benefits.

Alongside online TRS, some employers continue to issue paper statements, which are typically a condensed version of the traditional four or five-page documents posted to employees’ homes. According to providers, positive feedback on this remains strong.

The cost of providing TRS varies according to an organisation’s size and requirements. It can range from less than £10 a year per employee for a simple TRS up to £100 for more sophisticated online formats.

The facts

What is a total reward statement?

This is a document, printed or electronic, that details the full benefits package an employee receives, including salary, pension and shares. It can also include data about non-financial benefits, such as health and wellbeing provision and workplace training.

Where can employers get more information?

Visit the Employee Benefits website at bit.ly/1dDeU92

Who are the main providers?

TRS are available from most reward consultancies and benefits providers, including Aon Employee Benefits, Benefex, Ceridian, Fair Care, Grass Roots, Hay Group, Jelf Group, Edenred, Mercer, NorthgateArinso, Ovation Incentive, Paydata, Personal Group, Reward Gateway UK, Staffcare, Strait Logics, Thomsons Online Benefits and Vebnet.

STATISTICS

58% of employers do not currently offer total reward statements, while just 9% have plans to introduce these. (Source: Aon Employee Benefits, September 2014).

88% of organisations identified talent retention as the key objective of their total reward programme, including TRS, while 76% cited rewarding employees. (Source: Mercer, May 2014).