HOW TO SET UP A FLEXIBLE REMUNERATION PROGRAMME
Flexible remuneration has been on the table in many companies. In recent times, companies have wanted to opt for a model that benefits both employees and the organisations themselves. It is a win-win relationship, as cash salary is exchanged for products or services that the company makes available to the employee, ranging from restaurant or childcare vouchers to transport cards or training for companies.
Tax improvements, work-life balance, improved time management… These are some of the advantages of having a flexible remuneration plan in your company. But how do you create this flexible remuneration plan? Planning is key to avoid general disapproval from employees, even though it is a beneficial measure.
How to set up a flexible remuneration plan
For large companies, flexible remuneration schemes have been a reality for a long time. But for small and medium-sized companies, many are still hesitant to take the plunge. There are often many doubts and, above all, it may seem difficult to start planning a flexible remuneration plan, but here we show you how to do it.
Before starting, it is very important to be clear that if the company wants to implement this flexible remuneration scheme, it must know how to convey that the employees are the main beneficiaries and that communication must be as fluid as possible.
These are the stages in the creation of a flexible remuneration plan:
1. Preliminary analysis and needs assessment
The first step is to consider what the company’s remuneration strategy is and what the tax advantages of a flexible remuneration programme will be. We must be clear about the needs of our employees and see what can improve their situation. To do this, it is important to listen to their needs and analyse what kind of services best fit their lifestyle.
2. Design of the flexible remuneration plan
At this point, we must delimit the salary that will be in cash and the part that will be made available to employees to choose the services offered to them. Remember that the flexible remuneration base has a limit of 30% of gross salary for payment in kind. As we already know the demands of the workforce, we will be able to establish the products that can be selected and will be the ones that best suit their needs. In case we have detected a need such as training, we can offer training for employees.
3. Implementation of the remuneration programme
We then need to sit down with the employees and simulate the different scenarios, define when the plan will come into effect… In short, design the personalised flexible remuneration programme. To do this, it is essential to explain to the employee the economic and social advantages in each case. It is very important to let them know what the main benefits of the services offered are.
4. Management and implementation
Once it has been defined how each employee will be paid, the day-to-day work remains: the monthly arrangements for the contracting of products, the preparation of payrolls and the accounting of payments made by the organisation. In addition, it should be borne in mind that the management can be outsourced without increasing costs. It is very important that the services we offer are easy to access, because if the contracting of services is complicated, they will not want to use them. In the case of training, it is key to go with a training school like Classgap for Enterprise. We offer all the advantages and benefits of training with the greatest convenience for the employee and the company.
5. Communication to employees
It is crucial to plan internal communication in order to address any questions employees may have. In this way, they will be able to make the most of the benefits and tax advantages of flexible remuneration. Remember, if specific or personal questions arise, it is very important to answer them so that there are no loose ends that hinder the development of the remuneration plan.
6. Evaluation of the results
The term of the flexible remuneration programme is annual, and it is also a modifiable process. It must be properly monitored and evaluated. Adjustments to the remuneration package can then be made as necessary. Employees’ circumstances change and, with them, so do the services of in-kind remuneration that suit them best. It is essential to listen to employees’ opinions and to know what changes and improvements could be implemented.
Choosing training as flexible remuneration is a safe bet, both for the business and for the company. Training employees means having a much more competent and prepared team. This will help the company to stand out from the competition and keep abreast of new developments and changes in the sector.
Choose the best training for your employees and create a good flexible remuneration plan in your company. Contact us and we will advise you on training for companies.