FLEXIBLE REMUNERATION: EVERYTHING YOUR COMPANY NEEDS TO KNOW

You’re probably aware of all the advantages of flexible remuneration both for your company and your employees. 68% of the employees are happy with their flexible remuneration plan and acknowledge they’re saving money. However, 40% of employees still don’t know about flexible remuneration and its benefits.

Are you thinking of implementing flexible compensation in your company? Maybe you are, or maybe you still have questions. Let’s dive deep into flexible remuneration, its keys, its benefits, and other things you need to keep in mind.

Advantages of flexible remuneration

People tend to think of flexible remuneration as company perks. And although technically they are, flexible remuneration is much more than that. It’s a policy that, if implemented well, can have a great impact on employee performance and therefore on the growth of the business.

That’s why you should see this way of compensation as a win-win both for the company and the employee. Here are some advantages of implementing flexible remuneration:

• Saving (both for the company and the employee). For employees, flexible remuneration provides the ability to convert taxable cash spending into non-taxable, saving a percentage of their salary. For companies, it’s an opportunity to add value to their employees without making an extra financial investment.
• More productive employees: research shows that when employees are happy and satisfied, they work better and are more productive. Also, their commitment and dedication at work tend to increase.
• Employee retention and attraction: one of the main challenges of these times is employee retention and attraction. Companies need to be very strategic when it comes to keeping their staff happy and well taken care of or they’ll go somewhere else.
• Customisable and voluntary: the best about flexible remuneration is that it responds to a current tendency, flexibility, and customisation. People want to customise their lives more every time. This kind of compensation allows employees to choose whether they want to have flexible remuneration at all and in which percentage, up to 30% of their annual gross salary.

Best ways to implement flexible remuneration

So, do you know how to implement flexible remuneration? Here are some ideas:

• Parking and transport cards: people will need to use either of these to travel to work and other places during the week.
• Health and/or life insurance.
• Childcare: the most used flexible remuneration ticket in Spain. A study reveals that families spend an average of €250 a month per kid.
• Company shares: this is often overlooked by many companies, but giving your employees company shares is a great way to create a stronger commitment.
• Meals: during weekdays, most employees need to take care of their meals during their workday. Either they bring food from home or they have to buy it. So giving them the option to opt for a meal ticket is a great benefit.
• Training for companies: here’s where the most significant return for the company comes into play. If you include training as part of your flexible remuneration program, you’re giving your employee the chance to train multiple skills they need for work, improve their resumes, and at the same time, you’re upgrading the talent of your company.

Soft skills training: give your employees what they need (as part of flexible remuneration)

Technical knowledge and skills are a must when it comes to employee performance. But without soft skills, you won’t get far.

That’s how some managers are given the position because they’re great in what they do and then they’re terrible leaders. In fact, a study showed that 59% of managers feel uncomfortable communicating with their teams (an extremely important soft skill, especially when it comes to leaders).

Or you hire a candidate because of their great technical skills and then they can’t get along with the team.

Although soft skills are key to business growth, still 54% of employees don’t include them on their resumes.

Check out these crucial soft skills trainings to include in your company’s flexible remuneration program:

Leadership: a key skill not only for managers but for all employees. Being able to successfully lead a team, a project or a certain set of tasks makes the difference.

Assertiveness: people need to be able to make decisions and communicate them in an appropriate way.

Oratory: oratory and communication, are two fundamental skills for work and everyday life that most human beings lack. Most problems originate from a lack of communication and clarity.

Coaching: enhance your team’s collaboration by implementing coaching training. It will allow your employees to define and achieve their personal and professional goals.

Training for companies: a great way to implement flexible remuneration and make it a win-win

Training for companies is key in this globalised and technological world where everything keeps changing and evolving. An updated and upgraded stuff is fundamental when it comes to staying competitive and growing as a business.

However, in 2018 research by the U.S. Bureau of Labor Statistics found that organisations with 100 or fewer employees gave only 12 minutes of training for managers every six months.

Including training for companies in your flexible remuneration plan will ensure you a constantly trained staff that will be up to everyday challenges.