WHAT ARE THE DIFFERENT FORMS OF FLEXIBLE REMUNERATION?

Are you looking to implement flexible remuneration in your company and aren’t sure how to do it? Or maybe you heard about this kind of compensation and would like to learn more.

Flexibility is this century’s word to define work culture. Since millennials got into the game, employees’ goals changed completely. People no longer want to work at a company for their entire lives anymore. Their aspirations go beyond that.

A high turnover rate, employee attraction and retention difficulty, and freelance and remote work are the main aspects that define today’s workforce and companies need to adapt.

Flexible remuneration comes as a great opportunity for creating flexible work environments and giving your employees more value without increasing costs. It’s voluntary, cost-effective, it gives you and your staff more value and it’s a win-win.

But which is the best way to implement it? Keep reading and find out!

Flexible remuneration: the best way to implement it in your company

If you want flexible remuneration to have the desired impact, make sure you know what your employees want and need. You can perform a survey or ask them individually, whatever works best for you. But it’s essential you get a clear picture of what would be successful in order for the flexible compensation plan to work.

Once you know your employees’ needs and wants, it’s time to build your plan, and then carry on the following fundamental steps:

• Communicate the flexible remuneration plan to your employees: many people haven’t heard about flexible remuneration, so clear communication is key.
• Make sure they understand the benefits: some people won’t get that it’s a benefit. Tell your employees exactly how flexible remuneration works and make sure to highlight the financial benefits they will be getting.

It’s not just money: Flexible remuneration is a win-win

Would you like to increase the motivation of your workforce? Would you like to be able to give them more value without it representing additional costs for the company? Well, that’s what flexible remuneration embodies.

Flexible remuneration is a form of doing all this at once. Your employees will be happier because they will experience a net salary increase, and all that without it representing an additional financial investment for the company.

That’s an actual win-win. In times when the employee turnover rate is higher than ever, and when being able to attract and retain talent is a great challenge, flexible remuneration is the perfect strategy to keep your staff motivated, happy and productive. 

Goods and services: how to understand what your employees want

One of the many benefits of flexible remuneration is that it’s voluntary. That means employees can choose whether they want flexible remuneration or not and if they do, in which percentage (up to 30%) and which goods and services (among those offered by the company).

Flexible remuneration can be implemented in many different forms. The most popular goods and services are:

• Childcare
• Meals
• Parking card
• Transportation
• Insurance
• Gym
• Training for companies

Training for companies: soft skills training as part of your flexible remuneration plan

Training for companies is among the top reasons why employees choose to work and stay at a company. As you were reading above, companies need to be very strategic about attracting and retaining employees.

That’s why providing an effective training plan is a great way to implement flexible remuneration. On one side, your employees get to upgrade their skills and resume and improve their growth potential within the company. On the other hand, you increase the talent of your staff and get a more motivated (and therefore, more productive) workforce.

But… which kind of training should you implement? While there are lots of hard skills worth training (such as languages, technical skills, etc.), today’s most demanded abilities are related to soft skills.

Soft skills are those non-technical skills, related to how you work. And while hard skills have been highly valued for years, companies are still discovering the value of soft skills. After all, there’s no point in being the best accountant if you can’t get along with your team or communicate your ideas clearly.

Implementing soft skills training as a way of flexible remuneration is a great way to develop these abilities within your workforce and that way, leverage their hard skills.

These are some soft skills training that you can provide:

Oratory: it’s important that your employees know how to communicate with their teams and present their ideas.

Leadership: are your managers good leaders? Research shows that more than 80% of employees are willing to leave their jobs because of a bad boss.

Assertiveness: having the ability to make smart decisions in their daily work lives is a fundamental skill.

Coaching: achieving goals is part of daily life. Give your employees coaching training and you’ll get focused, goal-oriented people in your company.