Total compensation statements—sometimes known as total rewards statements because they look beyond compensation to include the full picture of advantages you offer—have become important tools for improving employee engagement, satisfaction and retention.

By detailing all of the ways employees are rewarded beyond their salaries, total compensation statements shine a light on just how much organizations invest in their workers’ well-being and growth. Total compensation statements are becoming especially valuable today, as employees demand greater transparency and equity, and are ready to change jobs if they aren’t satisfied with what their current employer has to offer.

Demonstrating, not just claiming, that you value employees

HR professionals are acutely aware of the total cost invested in each employee—and even that doesn’t provide the full picture. By the time you add training and mentoring, organization-wide benefits, and nonmonetary advantages, you’re likely doing far more for you employees than you or they realize.

During the new hire process, candidates are often presented with a package detailing salary and bonuses, as well as other tangible and intangible benefits. Once a person is on board, however, that conversation is rarely revisited. At a time when the cost of recruiting and onboarding new workers is incredibly high, retaining talented individuals who already know your processes and products is a priority—they need to see exactly how much you value them.

Total compensation statements provide an annual or ongoing opportunity for everyone to think through what a company is offering beyond the paycheck. From health benefits and retirement contributions to gym memberships and paid time off, a well-organized total compensation statement gives you the opportunity to promote the whole package. While some of these items may appear on a check stub or statement, it’s unlikely that a full view of benefits is available in one, easy-to-understand place.

Clear, culturally appropriate communication

When a company deploys total compensation statements, rather than leaving discussions of pay and benefits to individual managers, you can be certain that everyone is getting clear, consistent information. They can see their complete package, which likely amounts to much more than they realized, as well as be reminded of time off, wellness benefits, development opportunities, flexible work options, and other ways the business puts their needs first.

Our team has worked with many companies to generate total compensation statements, tailoring the data points, messaging and even branding to reflect each organization’s culture and needs. Personalized letters from leadership, for example, can engender trust that all employees are being treated respectfully and equitably. Prioritizing data based on employee feedback around what’s most important to them can help you shape the conversation. Reiterating rewards and accolades in writing can motivate workers to continue to perform at their best.

Help yourself attract and retain the best

What it’s really like to work for a company gets around. People know which companies have a good reputation for transparency and fairness, and which do not. A step as simple as distributing total compensation statements can help ensure that the narrative about your company is positive—not only will the benefits you offer be top of mind, but the sense of trust and loyalty they engender will reach beyond your walls.

As potential hires consider offers from you and your competitors, your reputation may be the deciding factor. And, once employees are on board and feel as though they’re valued and well compensated, they’re less likely to leave.

Your own total compensation statement strategy

As you explore ways to keep your employees happy and engaged, consider what information your total compensation statements should convey. We’re believers that more is better—anything you provide to make workers lives easier or more rewarding is worth spelling out. After all, if you don’t remind employees about all the great things your company has to offer, who will? The effort to import data, create templates and communicate with your employees is well worth the benefits that total compensation statements can provide.