Total Reward

The value of an employee benefit can often far outweigh its costs. Take the example of employee who dies and has a large lump sum, perhaps four times their annual salary or more, paid out to their family. The average lump sum under death in service policies is around £100,000 yet the average premium an employer might pay for this cover is less than £100 per annum.

Often though employees simply do not understand the actual value, let alone the potential value, of the benefits their employer provides. This is where “Total Reward” can help. It seeks to quantify the value of all the benefits you might provide your employees, both salary and non-salary items, and then provides them with an individual summary of this value. Typically a total reward statement might show that the value of the benefits package is 15 to 20% of the employees’ total remuneration.

This then is an excellent way of helping to ensure that your employees gain a better understanding of the value of their benefits and hopefully become more appreciative of them.