The intangible benefits

Financial rewards are easy to quantify. They usually arrive in pay-packets or additional bonuses and their benefit can be felt immediately, thanks to a rising bank balance.

But what about the less obvious relational or non-financial rewards? For some, rewards that relate to training or a clean working environment aren’t always immediately recognisable, nor tangible. However, businesses can relatively easily calculate the per-employee value of such activities and corporate aspects by simply taking the training or facilities budget and dividing it by the number of staff.

This fascinating exercise provides business with an invaluable tool that can help employees realise what their total reward from the company is.

It’s worth bearing in mind that every business is different, and some organisations may not want to include elements like a clean office as a benefit. That’s absolutely understandable, as is the fact that some businesses may wish to include additional benefits alongside those that are relational.

Tracking the 14 standard benefits

In Natural HR, you can track fourteen of the most common benefits. We refer to these as the ‘standard benefits’, and there’s a strong chance your business will offer at least one of them for its employees.

What’s more, Natural HR can track these benefits and enables users to add custom benefits to begin tracking those that are most important to the organisation in question.

The standard benefits included in Natural HR are as follows:

  • Commission
  • Pension
  • Medical insurance
  • Dental insurance
  • Life assurance
  • Health insurance
  • Critical illness
  • Employee assistance
  • Gym
  • Childcare
  • Company car
  • Car allowance
  • Fuel card
  • Mobile phone

Total Reward

Ask any employee how much their salary is or what they get paid and most will be able to answer in a flash. It’s the same figure that appears in their bank account at the end of every month, and has become ingrained thanks to the excitement that usually surrounds ‘pay day’.

However, ask the same employee how much their entire package is worth, and they may well struggle. Even if employees know how much their direct benefits are worth (for example, things like pensions, life insurance and the like), there are a whole host of other elements the business might provide them with which contribute to the overall employee package and which they’re unlikely to recall straight away.

In HR circles, this is known as the ‘total reward’ and represents the entirety of an employee’s renumeration.

Total reward takes into account everything an employee values from their employment relationship, which not only includes monetary benefits such as the main salary, but other rewards that are linked to their achievements, personal growth and working environment.

The importance of the total reward

Let’s consider the journey of a disengaged employee. How did they become disengaged?

Rewind a little and we join them at their initial interview. It goes well, they’re happy with the package on offer and the business loves their attitude. So, they get hired and start work, slotting in seamlessly.

Each month, they’re paid, and it’s the same amount each time (give or take the odd small bonus for strong performance on behalf of the company). As the years progress, that figure climbs slowly but steadily. While this is welcomed, it still feels like a very familiar number to the employee, and as the months continue to roll by, their engagement level drops. With no opportunities to progress above their current position, the monthly pay quickly slips into insignificance, purely becoming a method by which to pay the bills.

Such employees can quickly slip from the grasp of businesses, and that’s such a shame. It’s completely avoidable, too, because if the employee was better informed about the intangible rewards that surround their job (i.e. those that don’t necessarily end up in their bank account each month) they’d likely develop a much stronger emotional connection to the business.

But what are the intangible benefits, and, most importantly, how can businesses and employees keep track of them?

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Total Reward Statements

Often, companies only think of total reward analysis as an annual process that is linked to the review process. Unfortunately, this creates a number of issues, chief among which is the significant delay in employees discovering their total value to the business. If that only comes once every twelve months, its impact will be diluted, and the chances of the employee becoming disengaged heightened.

The total renumeration for employees is something that should be monitored constantly. More importantly, it should be accessible whenever required by both the employees themselves and their managers. After all, the more readily available the total figure is, the more staff can appreciate their overall reward for putting in the hours every day.

Total reward statements are a way of allowing you to communicate this to your employees. Total reward statements can be used to remind individuals of the total value they receive from their employer which could in turn help motivate and retain them.

The total reward statements feature in Natural HR offers instant access to the most important employee financial figures. The statements are based on real-time data, and therefore enable employees and managers to access and download the information whenever the need strikes.

Within Natural HR, we have included a customisable template to use for your total reward statements. As well as setting obvious elements such as the title of the report, you can also brand the statement with your logo. Additionally, there are a choice of display options for the benefits themselves (i.e. in table or chart format – or both).

Perhaps most importantly, the statement feature in Natural HR allows you to enter additional information which you might want to use to highlight some of the less well-known or utilised benefits offered by the company with links included to further information for those that want to know more.

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Total reward is just one element of the Natural HR software suite. It joins a huge number of tools and features which enable HR teams to be better organised and gain a more insightful view of the organisation as a whole.

Transform your in-house communication, reporting and employee development with Natural HR.