What are the benefits of flexible compensation for employees?
Employee pay is one of the key factors in job satisfaction. But remuneration is no longer a concept that only relates to the end-of-month salary. The truth is that there are alternative forms of remuneration that are increasingly valued by employees, known as flexible compensation.
In this article, we tell you about the benefits of flexible compensation for your company’s employees, benefits that, at the end of the day, translate into improved business performance.
Benefits of flexible compensation
1. Improves the working environment
Flexible compensation refers to all those benefits that employees have for the fact of working in a company, beyond the salary. In addition to aspects such as language training for companies or medical insurance, it also refers to company trips, events, meals… In short, many group activities that are paid for by the company and that benefit the employee directly.
Therefore, implementing a flexible compensation plan can be an ideal way to improve the working environment of the company through group activities, where employees enjoy themselves. Undoubtedly, these activities foster the relationship between employees, thus improving the office climate.
2. Allows to fight inflation
This aspect is not always relevant because there is not always inflation. But, nowadays, there is, so it is a very important aspect for employees. Inflation influences the value of the currency and, consequently, directly affects employees’ salaries. Therefore, generating payments through goods and services that can be used by the employee is a good way to combat it.
By not providing direct monetary benefits, the value of the product is based on its cost at the time of purchase. And, if it was purchased pre-inflation, the employee is saving money indirectly, since purchasing the same service today would cost more.
Despite this, it is essential for companies to identify those aspects that their employees value most. Otherwise, although it would still represent a saving, employees will not value the actions as much.
3. Facilitates personal growth
Just as corporate activities foster employee relations and the work environment, there are other forms of flexible compensation that directly influence employee growth. A very clear example of this benefit is corporate training, an activity that is paid for by the company, which is carried out during working hours and allows the employee to learn skills that he or she will also apply outside the company. Undoubtedly, an ideal way to improve the emotional salary, but also to influence the competitiveness of the company.
In addition, these activities have the added value of being carried out during working hours, so the employee perceives that he/she can learn skills that he/she will apply outside the company as well. This becomes the fourth benefit, improved engagement.
4. Improves the level of engagement
Perceiving that your company is taking care of you on a personal level, beyond seeking to improve results, is something that every employee values highly. Moreover, it is an aspect that has a great influence when it comes to retaining and attracting new talent, and for certain profiles it is as important as the salary.
This aspect is also related to improving the work environment. We all want to be in a company where we have a good relationship with our colleagues, and it is more difficult to leave a company with a pleasant working environment. Therefore, in addition to directly benefiting employees, flexible remuneration also promotes talent retention and, consequently, involvement in the business project.
5. It saves the company money
Although this is perceived as a benefit at the company level, the truth is that better results have a direct impact on the well-being of employees within the company. After all, when a company saves on salaries, it can invest more resources in activities that generate value for customers, which tends to improve results. And, when results improve, employees perceive that their work is paying off, which directly improves motivation and job satisfaction.
Corporate training and flexible compensation
In summary, flexible compensation has a host of benefits for both employees and the company. Therefore, it is essential that companies that do not have it develop a flexible compensation plan with those activities that can be implemented and communicate it properly. There is little point in benefiting your employees if they are not aware of it.
Among all the activities included in flexible compensation, there is one that has more benefits than the others, especially at the company level, but also for employees. This is training for companies, especially language training for employees. Not only does it improve the company’s competitiveness, but it also has a direct influence on the personal growth of each employee. For example, implementing in-company English classes opens doors to new markets and international talent, but also allows your employees to travel more easily, or to obtain an official language diploma.
In short, training is one of the best ways to implement flexible compensation, but it is essential that it is adapted to the needs of each company. This is why Classgap for Enterprise exists, to detect your training needs and find the most suitable teacher to meet them, taking into account both the objectives and the particularities of the business sector.
If you have any doubts, contact us and tell us about your case, we will be happy to help you.
