Purpose

The Total Compensation Statement (TCS) is an individualized document that outlines the major components and financial value of an employee’s pay and benefits. It allows HR to highlight and summarize the all-in job value proposition to employees. The document helps organizations communicate every component of the compensation philosophy and how each supports the employee and impacts the organization’s overall business strategy. From the employee standpoint, it is helpful to understand both cash and other essential pay elements that the organization provides as part of its value proposition.

How to use this tool

A TCS should (i) be easy to read, (ii) allow the employee to acknowledge the main changes in the fiscal year, and (iii) help the employee track their compensation evolution.