THE IMPORTANCE OF IN-KIND REMUNERATION IN COMPANIES 2021
For some years now, non-monetary salary benefits have been gaining in importance among employees. The fact that a company provides its employees with facilities is always welcome, and this past year, even more so.
We are at a time when most companies are going through economic difficulties, and in times of wage restraint it is best to opt for emotional pay, i.e. remuneration in kind. If your company does not use flexible remuneration with its employees, or you think it is not done correctly, do not worry, from Classgap for Enterprise we tell you all about flexible remuneration for employees.
What is payment in kind? Examples and advantages
Remuneration in kind are those benefits or benefits that employees can receive, either in addition to or as a substitute for part of their salary. Most companies have some, such as restaurant tickets, childcare… These are born out of the need for employees to be in a comfortable and pleasant working environment so that they can develop 100% of their work. That is why it is called emotional salary, because beyond having an indirect economic compensation, they serve as additional motivation, very useful to attract and retain talent. Some of the most commonly used flexible retributions are:
- Employee training
- Restaurant Ticket
- Transport Ticket
- Flexible working hours
- Medical insurance
Remuneration in kind: 7 benefits to apply in the company
Flexible remuneration is based on offering employees a benefit at a lower market cost. Each employee can decide which benefits they want and how much of their salary goes to each.
As you may have noticed, it is beneficial for both parties, since the company does not have to raise salaries and workers have access to these services at a low cost, and they can also have a tax exemption from Personal Income Tax (IRPF) of up to 30% of the gross annual salary.
What are the advantages of flexible remuneration?
- Increased net remuneration
- Increased employee motivation
- Savings for employees
- Helps to reconcile work and family life
Training and remuneration in kind, the great allies
One of the retributions in kind in which both company and employee benefit the most is online training for workers. This can be used in a complementary way to their work, i.e. training in some aspect or tool of their daily tasks that can be improved or as a benefit for the employee, with the employee choosing the subject they want to learn.
For the company it is very beneficial, since the employee will improve his or her skills in the workplace, which will increase productivity and motivation. The way in which the employee perceives the company is fundamental for his or her performance. By training your employees, the company demonstrates its interest in them and its intention to continue offering its services, inviting them to constantly renew themselves.
In addition to these benefits, online employee training can be free of charge. Thanks to Fundae, all Spanish companies have a training credit for employee training, which can be subsidised up to 100% of the training.
Do you want to train your employees to reward them? Contact us to find out more.