According to a white paper on the Total Reward Statement from the Centre for Excellence in Strategic Rewards at Vlerick Business School, a Total Reward Statement (TRS) increases awareness of the total compensation package, enhances appreciation, shifts the focus from financial compensation to other non-financial reward elements, and has a positive impact on recruitment and retention1. Everyone agrees on the many benefits of a TRS, but still, few employers offer it. Nevertheless, it is a simple and essential step toward better communication of the compensation package. With the new European pay transparency directive, there is now an additional argument to offer a Total Reward Statement.
Proactively addressing the European pay transparency directive
By 7 June 2026, the European Pay Transparency Directive must be implemented into Belgian legislation. For companies with more than 250 employees, an annual reporting requirement will apply, while smaller businesses will be required to report every three years. By implementing a TRS, organizations can proactively respond to this directive. A TRS helps employees gain a complete picture of what they receive, which contributes to transparency. By providing standardized information on compensation, a TRS makes it easier for employees to compare their compensation with that of their colleagues. It also promotes an open dialogue about compensation and can help prevent misunderstandings or dissatisfaction. Additionally, through the TRS, an employer can proactively provide transparency on the average compensation level for comparable roles.
In Belgium, the land of many benefits, it is essential to properly value these advantages. A TRS helps employers make a complete and accurate assessment of all benefits, which is crucial for gender pay gap reporting. For this reporting, all forms of compensation, including benefits, must be included. By valuing these benefits now, employers can save time and effort when reporting the pay gap later.
A complete overview of the total compensation package
Due to the high fiscal pressure, Belgian employers have always been very creative in offering benefits. Belgian employees are often entitled to a very comprehensive compensation package, but it is also clear that they are not always aware of what this package actually entails. Only a few benefits are listed on the pay slip and are presented in a complex manner. Some employers offer a brief explanation on an intranet, but this is usually not complete. The total compensation goes beyond the net salary, group insurance, and company car. It can also include the annual company party or training programs. With a Total Reward Statement, you can provide a complete overview of all the benefits.
Highlighting unknown benefits or focusing on a specific strategy
Through the TRS, employees can discover previously unknown benefits. This is important because some benefits, for example, are never properly communicated, or certain elements are not always seen as part of the compensation package. The possibility to enjoy a quality meal at the office or have a good coffee can, for example, also be part of the compensation package. Employees receive a clear overview of both financial and non-financial benefits offered to them.
This provides a clearer view of the value invested in benefits beyond salary. The Total Reward Statement not only helps to highlight these unknown benefits but also offers a way to focus on a broader strategy around the total employee package. It creates transparency, allowing employees to better understand their full compensation and the value of the total package.
The appreciation of the total compensation package increases
Studies show that a TRS increases the appreciation of the total compensation package. Employees receive an overview of the entire package in one place. They can see how comprehensive their compensation package is and gain a clear view of the (often high) value of certain benefits.
Valuing a benefit
It can be difficult for employees to assess the value of a particular benefit. The TRS makes it easier to assign a value to a benefit. For example, with health insurance, an employee only realizes the value when they need to arrange their own health insurance. Employees also don’t always understand the contributions their employer makes to the pension plan. Other benefits, such as a fuel card, can also have a very high value.
A clear valuation allows employees to compare the value of benefits with cash. When comparing salary packages between employers, employees typically focus only on cash and not on all the benefits provided, precisely because those benefits are difficult to value.
Explaining a benefit concisely
Many components of the compensation package can be difficult to explain and employees may not always know what they are entitled to. Through the TRS, an employer can provide a concise and clear explanation of each benefit and, if necessary, add additional documentation for each benefit. Even the sometimes-complex lump-sum expense reimbursements can be clearly explained through a Total Reward Statement.
A tool in the context of recruitment
A TRS can also be a powerful tool in recruitment, as it provides potential employees with a complete and transparent overview of an organization’s total compensation package. In a competitive labor market, a TRS can help increase an employer's attractiveness by highlighting not only the base salary but also the value of other benefits, such as bonuses, pension plans, healthcare, and other perks. By providing this comprehensive information in a clear and innovative way to candidates, employers can differentiate themselves from competitors and clearly communicate the unique benefits they offer. This increases the chances of attracting talent that values a holistic approach to compensation and helps align the expectations of both parties from the outset.
KPMG's Total Reward Statement
KPMG has developed an innovative online Total Reward Statement with the following benefits:
- Quick implementation: Set up your Total Reward Statement quickly with easy configuration. Use it as part of the KPMG Flex Reward Tool or as a standalone solution.
- Easy customization: Easily add or adjust benefits and texts, either independently or with support from KPMG, including concise explanations in four languages.
- Flexible: Customize benefits and amounts at the individual, group, or country level for maximum personalization.
- Innovative tool: Includes single sign-on for a seamless user experience, with APIs available.
- Expert support: Benefit from the expertise of the KPMG team, specializing in reward, taxation, wage transparency, and social law.
