With the rising demand for professionals and the war to attract, engage, and retain them, employers are utilizing the best possible way to show employees what they are offering.
Yes, you guessed it right! We are talking about TRS or the Total reward statement. A Total Reward Statement is provided by the organization to help employees understand the value of their salary package.
But, what does this TRS exactly mean and why is it provided? Let’s dive into all you need to know about TRS. Let’s begin;
What is TRS or Total Reward Statement?
A total reward statement or TRS is an official document that gives a view of the overall value the company offers to its employees as part of the relationship. Basically, the document helps you know the real value of the employment relationship, as part of the company’s Total Reward Strategy.
The reward statement of a company aims to be broad. Many organizations provide access to employee offerings like wellness programs and learning opportunities as part of their program.
This reward statement is created with the help of various role players but is owned by the company’s HR department.
TRS can be used by organizations as a part of the negotiation process with new employees. Later on, this document can be used as a medium for the employees to become aware of the value your organization is providing. This results in employee retention and engagement with the company.
Some Major Advantages of TRS?
Here are some reasons and benefits of having a total reward statement. Check it out;
1) Improve self-confidence
Compensation is always more valuable than having a pay cheque, at the end of the month. Employees working in organizations are not always aware of their compensation package or how much benefits or premiums and insurance they are receiving. The Total Reward Statement provided by an organization binds together all these components for the employees to find out their value or importance in the organization. As a result, this boosts their self-confidence and encourages them to work harder.
2) Attract new employees
A Total reward statement acts as a medium or tool to attract new employees. The statement is crafted in a manner so that the employees can see the accurate breakdown of their compensation. This helps the organization to work better in engaging key individuals. In their incentive plan, the company ensures to show the walk-away value of their equity awards and vesting options. This makes the employees attracted to your organization.
3) Increases engagement
Employees are not always aware of the benefits the company is providing to them. With Total reward statements, you can help them know which benefits they are provided with and how they can use the same. These statements can even be used by companies to plan acknowledgement for new talents. Therefore, the employees love investing their effort in the organization.
These customized statements, issued by the organizations are good enough to educate the employees about the company’s culture and branding. The total reward statement can be used as a tool for educating the workforce and escalating the company’s mission and principles.
5) Decrease workload
Most companies integrate with your HRIS (Human Resource Information System) and third-party providers to deliver programmed data feeds for your statement. This helps in the quick and easy upload of information through spread sheets. The best part is that you can simply create PDF versions of these statements for your purpose.
What is included in the statement?
1) Base pay
2) Variable pay
3) Company car allowance
4) Private medical or dental insurance
5) Season ticket allowances
6) Cycle-to-work schemes
7) Share options, incentives, and bonuses
8) Employer pension contributions
The company can also include items that are difficult to quantify like discount schemes and policies, L&D programs, etc.
Features of TRS or Total reward Statement
Check with the features of TRS, issued by the companies for the benefit of employees.
These statements are quite responsive and accessible on both mobile and tablet. They feature hovering text, and a customizable glossary to help employees understand their benefits and compensation without any doubt.
The statement allows employees to submit their personal information and capture plan acknowledgment as well. They feature insights with the ability to track access and the type of device.
All these statements are mobile-enabled. Employees can receive these statements the way they want to. It is nothing like you need a computer or laptop to have access to these statements.
Employees working in an organization receive different levels of compensation and benefits. The company’s dynamic statements allow you to control the visibility of these compensations.
Every company store these reward statements in a highly secured cloud solution. You need to enable a single sign-on with your directory or have to fill up a form for authentication.
A total reward statement will always be known for being a valuable tool for companies to create awareness of the true value of the employees. In the world of competition, understanding the value of rewards is very essential. Providing benefits and compensation to an employee will definitely help your company grow faster. This can be used as a tool to attract new talents and add tangible value to the organization.