Flexible compensation: What is it and what are its benefits for your company?

What do employees value most in a company? It is common to think that salary is the most important thing and, although this is true, it is a truth that has more and more nuances. Flexible compensation is a concept that is gaining more and more importance. This concept refers to all those forms of compensation that go beyond salary, such as bonuses, health insurance or even corporate training.

Having a flexible compensation plan will help to retain current talent, but also to attract new employees if it is communicated correctly. Therefore, we will tell you about the benefits of flexible compensation and how to implement it in your company.

What are the benefits of flexible compensation for employees?

As mentioned, flexible compensation has a great influence on attracting and retaining talent. Although, of course, it must be linked to a competitive salary, the truth is that many people would turn down a new job with a higher salary if they do not perceive new benefits at the company level.

One of the main benefits of flexible pay is that it is a form of compensation that does not change with the economy, at least not as much as in-kind compensation. As such, it is an efficient way to remunerate your employees in times of inflation, while also bringing numerous economic benefits to companies. For example, offering language training for employees is highly valued, while for the company, it is a training that can be subsidized by Fundae. In this sense, a very great benefit is offered at a moderate cost.

But this is not the only benefit of flexible remuneration. Flexible remuneration also means holding company dinners, teambuilding events, trips… In other words, activities that foster the relationship between employees and, consequently, improve the business climate. Therefore, in addition to being a form of remuneration, it also serves to improve the atmosphere, another key factor in retaining talent.

Negotiating flexible compensation. How to communicate its benefits to your employees

Although flexible compensation is becoming increasingly important, this does not mean that it is appropriate to cut employees’ pay in exchange for offering alternative benefits. That’s why, ideally, flexible pay should be part of company policies, and employees should understand that these are additional benefits that they receive on top of their salary.

In certain cases, implementing certain aspects of flexible compensation can result in a reduction in salary. For example, you can offer health insurance to employees in exchange for a slight pay cut. However, this is a benefit that should be optional, which the employee should be able to refuse if he or she wishes to do so.

On the other hand, it is essential to communicate this flexible compensation to employees effectively. This is because not all employees actually perceive the benefits they receive from the company. Many consider it to be something standard, which all companies offer, and this is not the case. Therefore, when implementing an action to improve flexible remuneration, it is essential to make this known at a general level, either through an internal email or through meetings.

Training for companies: the best way to implement flexible compensation?

There are many ways to implement flexible compensation, but corporate training is one of the most common and the one that provides the most benefits, both on a business and personal level. Training a company’s employees is undoubtedly an ideal way to improve its competitiveness in a controlled manner. After all, it is the management that decides what type of training to implement, and it is always done with the company’s competitiveness in mind.

But, in addition to this, the fact of teaching employees something new is something that is increasingly valued. In a context where employees no longer remain in the same company their whole life, mastering a new skill means improving on a personal level, which will help in many aspects of life. For example, implementing English language training for employees will provide them with many opportunities in the long term, as well as helping them to travel, socialize…

Therefore, if you are thinking of implementing flexible remuneration within your company, do not forget that Fundae subsidizes training, so it is an action that will have a moderate cost. From Classgap for Enterprise we can help you to find the most suitable courses for your company’s needs and to apply for the training subsidy. If you have any doubt, contact us and tell us your case without obligation.