Defining the time frame is the first item of business in building Total Rewards statements. It determines what data to capture and included.
There are two main time frames:
Retrospective Statement
- A “look back” at compensation and benefits provided in the previous calendar or fiscal year.
- Delivered once a year.
Current Statement
- Reflects current compensation and benefits, annualized for the full-year view.
- Typically done after benefits elections, annual bonuses, or profit-sharing.
- Can also be used at any point during the year, such as after Awards Year or for new hires
💡Best Practice
Do a retrospective statement for the past year, and include details for the new year as additional columns.
This hybrid approach provides:
- Recognition of what has been delivered.
- Transparency on what the employee can expect moving forward.