How to use total reward statements to encourage fairness and transparency

When thinking about compensation, it’s common for employees to only think about their take-home salary. However, salary is only part of the picture when it comes to compensation, and employees may be significantly underestimating the actual value of their reward package.

How to use total reward statements to encourage fairness and transparency

Today, we see employees demanding transparency from employers. This is great news for both parties as it creates awareness of total compensation for the employee, and provides employers with an opportunity to show employees the true value of their investment.

So, what’s the best way to make employees aware of their total compensation? Through a total reward statement.

What is a total reward statement?

In addition to an employee’s basic salary, a total reward statement calculates, assembles and visualises the total value of an employee’s compensation package. This can include:

  • employee benefits
  • insurances
  • pensions
  • tax and fiscal contributions
  • bonuses
  • vacation and sick pay
  • childcare
  • meal subsidies
  • public transport compensation
  • parking space
  • flu vaccinations
  • wellness programmes.

Total reward statements are presented as a printed document or digitised and made accessible via an employee portal.

What’s more, employers can enable employees to access their digital total reward statement via an app on their smartphone or tablet, so that employees can review their total reward anywhere, anytime.

Using a total reward statement encourages transparency and fairness, which assists employers with:


If employees are unaware of the total value of their reward package, there’s the risk they leave to work where they believe the grass is greener and where they think they will be better compensated. However, when presented with a total reward statement, employees can see every part of their compensation package. This transparency helps support retention.


Transparency and fairness around compensation helps build trust, which leads to employees feeling more connected to their employer, thus more likely to become a positive ambassador for the company.

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Awareness and understanding

Every employee seeks to be compensated fairly. Total reward statements are an effective way to create awareness of compensation and provide clarity around any questions or concerns about an employee’s reward package.

Before introducing total reward statements, Niels Kater, HR analytics and application management specialist at Adecco, shares that creating employee awareness of total compensation was a challenge.

“It was hard for us to make employees aware that it’s not just about their base salary, but their secondary payment, and the total combined,” Kater explains.

After introducing total reward statements via their employee portal, Adecco employees have a greater awareness and understanding of their total compensation.

“The portal is the starting point for all our HR processes. We incorporated our benefits budgets and reward statements so that it would give employees a better understanding of their working conditions at Adecco,” Kater shares.

Additionally, awareness leads to greater benefits appreciation and usage, which saves money on otherwise unused and wasted benefits.


Transparency around compensation is a powerful tool for attracting and recruiting new talent. Candidates can see the value of your offer and make an informed decision. If you are confident about your benefits offering and total compensation package, this is a wonderful opportunity to showcase it. By visualising your organisation’s total rewards strategy during recruitment exercises, onboarding processes or performance reviews, you will succeed in building a strong employer brand, making you a more attractive employer. It’s a win-win.

Are your employees aware of their total reward?

This article is provided by Benify.

Associated Supplier

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