With particular reference to the benefits associated with the offering of share options programmes, that is to say the opportunity offered to employees to buy company shares at a reduced price, Silverman and Reilly (2003) stress the “educative” role that statements can play for making individuals understand or not forget that the value of their shares, and consequently of their organization, daily fluctuates up and down as the stock market itself.
The reason why some employers furnish employees with total reward statements, nevertheless, is not exclusively associated with the employees’ lack of appreciation of the benefits they receive, but also with their genuine lack of awareness and understanding of their worthiness, which is more often than not due to the circumstance that some benefits have little or no visibility.
When organizations are experiencing an unusually high staff turnover, for example, it may prove to be well worth investigating whether, amongst the main causes behind this undesirable occurrence, individual perception of receiving a poor reward may play a role. More often than not, staff turnover is in fact caused by such a circumstance (KMPG, 2002).
Proving employees with TRS can effectually help employers to emphasize the value of the reward packages they offer; firms aiming at fostering their image of being the best in their industry will by extension unquestionably derive an enormous benefit from them.