REMUNERATION IN KIND: 6 BENEFITS TO APPLY IN THE COMPANY
Currently, we are well aware of the importance that payment in kind has gained in companies in 2021. Why is this the case? Quite simply, we are in a year of change, where all companies are struggling to stay afloat. They want to continue to take care of their employees so that they remain as motivated as ever, but this year they may have found it difficult to do so.
First of all, what is payment in kind? It is an economic consideration that companies give to their employees as an alternative to the traditional monetary salary. This consists of the company offering services to employees, at a lower price than what the service would normally cost.
“It is a way for the employee to earn more money even though he/she is still paid the same”.
What are the advantages of flexible remuneration?
Increases net remuneration
The salary in kind increases the net remuneration of employees, as they benefit from various benefits in kind (restaurant vouchers, childcare, etc.), which are deducted from their paychecks and can be included in a lower income tax bracket. In this way, you can earn more money thanks to the benefits in kind than without them.
Increased employee motivation
Remuneration in kind are optional benefits for employees, they choose the ones they want. The personalisation of these services to each employee increases their motivation. They are directly cared for by the company and increase their loyalty to it.
Savings for employees
By being able to access a range of services at a better price, employees save. The services offered are used by employees in their day-to-day work, such as language classes, eating out, taking children to nursery school or using public transport… Services that you would have to pay for anyway, you enjoy at a reduced price thanks to your company.
Support for family reconciliation
Not all payments in kind, or emotional pay, have to be reflected in the payroll. Another type of emotional wage for employees is flexible working hours, which is nowadays fundamental for any employee when choosing a company to work for. Organisation with partners and children has always been respected by companies, but nowadays, people who do not have children are also respected in their choice of working hours, so that they can organise their private lives as they wish
Increases attraction of talent
Benefits in kind are very important benefits when it comes to choosing a job. A company may offer a higher salary but its terms and conditions may be much stricter, making the job a poor fit with your personal life. One of the most sought-after benefits in kind for candidates is training, for many it is a mandatory requirement of the job offer. We must not forget that training employees has advantages for both parties: the company has more competent and constantly updated workers and the worker grows personally and professionally.
It is as important to attract talent as it is to retain it. We all like to have things made easy for us and to be able to count on the support and flexibility of the company if necessary, all of which is reflected in the emotional salary. Sometimes companies are blinded by the attraction of talent and forget to preserve the talent they already have, taking care of these people is essential to have a good image, at the end of the day workers are the ambassadors of a company.
Do you want to know how to retain talent through training? Contact us and we will advise you.