Sometimes known as “Compensation Adjustment Letters” or “Comp Change Letters,” Total Rewards Statements are letters sent out to each employee, formally notifying them of any changes made to their total compensation at the end of a merit cycle.
This template is intended to serve as an example of what a clearly written compensation adjustment letter might look like.
Comp adjustment letters are increasingly becoming standard practice as a post-cycle communication tool. Adjustment letters are advantageous for a multitude of reasons:
Clarity: Formal statements provide clear breakdowns of all changes made to employee compensation
Transparency: Compensation adjustment letters support a culture of transparency and openness when it comes to compensation
Documentation: Beyond the immediate utility, these letters provide an essential record for both the employee and HR for any future discussions or disputes
For more information on compensation adjustment letters, read our post here.
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