HOW TO EXPLAIN WHAT FLEXIBLE REMUNERATION IS TO YOUR EMPLOYEES
Do you want your employees to understand what flexible remuneration is? Many companies want to offer services and products to their employees through new forms of remuneration. Flexible remuneration is a type of remuneration that allows employees to spend part of their salary on services that cost less than the market. Why is there a price difference? It is mainly due to the fact that it is paid directly from the gross salary or payroll, so it is exempt from personal income tax.
This method of remuneration offers significant savings that many employees are unaware of. Specifically, only 2 out of 10 employees are aware of the economic value that a social benefits plan adds to their annual salary, according to Cobee’s Employee Trends report. Furthermore, the same report points out that 1 in 6 employees do not know what the concept of Flexible Remuneration really means.
What do employees need to know about Flexible Remuneration?
Many companies opt for a flexible remuneration plan, but do not understand why their employees do not receive it as a benefit. It is often the case that employees do not fully understand what it is all about and what the benefits are for them. The solution is not to share a report with them and expect them to assimilate the concepts. For this to work, a communication plan needs to be developed and employees need to be properly informed. This is what needs to be included:
- What Flexible Remuneration brings to your benefits plan
- Why it is beneficial to their career development.
- How it improves their day-to-day and future earning power.
It is very important to inform about all the benefits. For example, if we want to offer flexible remuneration such as training to our employees, we must make them aware of the importance of training and that it is a personal and professional benefit for them.
To avoid these situations, it is essential to create effective communication and training channels. It is important that the company knows how to provide the workforce with all the information necessary to explain what flexible remuneration is. Let’s take a look at the points to be taken into account:
- It is a remuneration system with a high impact on the employee’s finances.
- It has a significant impact on payroll and annual savings.
- Allows the employee to pay for services and products of daily use at a lower price than usual.
- The employee benefits from valuable savings because it reduces taxes by paying directly from the payroll.
Why explain Flexible Remuneration to employees?
Flexible remuneration schemes require work and effort. It is not enough to offer services to employees, their needs or requirements must be taken into account. It is very important to take into account the staff’s training and knowledge of the subject. Offering flexible remuneration is worthwhile because of factors such as the following:
- Improves the employee’s experience in their own workplace.
- Equivalent to a pay rise, more cared for and valued, more emotionally and physically balanced.
- Improves employees’ opinion of the brand and enhances corporate culture.
- It is another element to attract external talent and thus increase the potential of your human capital.
- It is an economical, effective and highly valued measure by professionals.
Keys to explaining flexible remuneration to employees
- Explain it properly and leave no doubt. It is not just about establishing a policy of transparency towards the workforce. It is about making employees aware of the benefits, as well as the challenges, that the company brings and takes on.
- Create new explanatory content: videos, manuals, guides, software applications, graphic elements… Everything adds up and helps to improve employee engagement.
- By means of a previously designed annual flexible remuneration plan and specific channels of information and dialogue between the company and its employees.
- Seeking the support of managers so that they know how to convey the benefits and pass on any doubts that may arise in the workforce.
- Offer services that are easy to obtain. If you want to offer flexible remuneration as training, it is very important that you have a training school like Classgap for Enterprise. Our platform provides you with specialised training tailored to the needs and objectives of each employee.
Training as flexible remuneration for employees is undoubtedly one of the best options. Classgap for Enterprise is a training school with more than 10 years of experience in the sector. We have our “Virtual Classroom” platform through which you can train your employees with all the advantages of face-to-face training, but without having to leave the site.