Total Rewards StatementsTotal Rewards Statements -or Total Compensation Reports- are an effective way to communicate to employees the real value of their compensation package. They include information regarding base salary, incentives and benefits, and each component is given a monetary value, showing the employee the cash value of their package, and generating a comprehensive view, much higher than considering only the basic payment.
It is common for employees to be unaware of the monetary value of the benefits they receive, particularly those whose cost to the Company is not less, such as additional contributions to guarantee medical coverage for the family group, company car, or annual medical check-up.
This tool can even display, highlight and value items that are usually not considered compensation such as extra vacation or additional leave. Or those whose value is not so obvious, for example Long Term Incentives.
The Total Compensation Reports can be displayed on the intranet, extranet/cloud, in pdf and sent by mail, or delivered on paper. Online systems may require a higher initial investment than printed solutions, but provide a better return on investment due to continuous access, ease of updating and real-time information supply, as well as a lower risk of making a mistake.
CompStrategy helps its clients with the following processes:
- Report Design: We know how to find the balance between attractiveness, precision and way of updating the Reports and the information that feeds them. To achieve an excellent design, it is necessary to identify the benefits - or other non-monetary elements of the compensation - of greatest relative value, discarding those that do not generate impact. It may also be necessary to consider tax effects to establish a comparable basis among the different elements shown.
- Benefits Valuation: We analyze the most representative and significant form to be shown to the employee, considering which period will be shown, choosing between valuing the previous period, or projecting it forward. Also between using the cost for the company, or the cost that the employee would have if he decides to acquire the benefit on his own.
- Valuation of Long Term Incentives: We can help those companies that grant this type of incentives to show their value by calculating their present value, which may require the use of moderately complex formulas - such as Black & Scholes - or other valuation mechanisms that consider financial, probabilistic and tax variables.
- Information Quality Review: We carry out a review of the information that will be used in the generation of the Total Compensation Reports with the objective of identifying inconsistencies or errors, but also to help the Human Resources Area to gain agility and solidity when faced with requests for clarification on the Reports that they may receive.
- Communication: We analyze and recommend the use of different means and strategies to ensure the reading and correct interpretation of the generated reports: Print, online, pdf, microsites... There are many options for formatting and delivering the Total Compensation Reports. The delivery opportunity and the strategic generation of expectations are critical to ensure the value perceived by employees.
These are some of our Areas of Expertise: