FLEXIBLE REMUNERATION: SOMETHING MORE THAN JUST MONEY
The first thing that usually comes to mind when talking about flexible remuneration, is, of course, money. But flexible remuneration is much more than just money. It’s a philosophy that allows companies to bring more value to their employees while also growing the business.
Have you heard about flexible remuneration? Is it something you’re interested in implementing in your company? There are many advantages that come with having a flexible remuneration policy for your employees that go much beyond money and we’re diving deep into them in this article, so keep reading if you want to find out!
Flexible remuneration: an answer to the problems of current times
Not long ago, what most people wanted when it came to working was to stay in a company for many years, maybe grow professionally and scale the company ladder and then retire and enjoy life.
But in these latest decades, especially since the millennial generation became predominant within the workforce, things changed. Not a little, but a lot.
Nowadays, employees value flexibility and autonomy over all the benefits companies could offer them. They want to work from anywhere, in their own schedules, and at their own pace. That’s this new era employees’ way to add value to the market and companies need to adapt. Flexible remuneration is a great way to frame these new needs that employees manifest.
Flexibility and customisation are the two main characteristics of flexible remuneration, since with this kind of compensation, employees can choose whether they want to be paid that way or not, in which percentage, and which goods and services they want to perceive as kind.
Another aspect of these current times when it comes to the workforce is the type of skills required from employees.
Behind are those times when hard skills were the most valued. Technical abilities are of course important, but soft skills like assertiveness, leadership, being able to work as a team, emotional intelligence, and empathy are starting to get more valuable as they are harder to find.
Soft skills training for companies, then, comes in as an interesting option for implementing flexible remuneration. More on this later.
How does flexible remuneration actually work?
Many people talk about flexible remuneration but not everyone understands the full concept. If you’re not clear about how flexible remuneration works, here are some keys to help you get the full picture:
Flexible remuneration is a kind of compensation by which employees are paid a portion of their salary in cash (the traditional way) and another portion in kind (goods and services that are acquired through the company and that way, they’re exempt from taxes).
The good thing about this is that employees can choose whether they want flexible remuneration or not, which part of their salary they want to perceive in cash and which part they want in kind.
Also, the company can offer many different goods and services as part of its flexible remuneration plan and employees can choose among all those products and services. The kind part of the salary can take up to 30% of the gross annual amount.
The good thing is, people would actually have to pay for these goods and services. Now they can access them for a lower cost.
Employee attraction and retention
A study by the Bureau of Labour Statistics showed that 4.25 million people quit their jobs in January 2022, and up from 3,3 million in 2021.
According to Gallup, the cost of replacing an employee is about one-half to two times the employee’s annual salary. Employee attraction and retention became one of the main challenges of these times. So implementing policies around effective employee attraction and retention becomes a priority.
Flexible remuneration offers many possibilities for employee retention and attraction since you can include interesting goods and services that will make employees think twice about choosing to work for your company and stay long.
Make sure to perform a complete audit that shows you what employees need and want, and turn it into an irresistible flexible remuneration policy.
Training for companies: a great way to implement flexible remuneration
Training for companies is among the top reasons why employees choose to work at a company and stay in it. The possibility of professional growth is among the most valued aspects by employees.
Also, including a training for companies program as part of your flexible remuneration plan will benefit your company since trained and updated employees make up a talented workforce.
But…how to use training for companies as a form of flexible remuneration?
One interesting way to do it is to Include soft skills training. Soft skills are the most important skills nowadays. However, they’re still often overlooked.
Leadership training for your managers or assertiveness training for those employees that need to make important decisions daily are interesting trainings to include as part of your flexible remuneration plan.