WHY OFFER FLEXIBLE REMUNERATION TO YOUR EMPLOYEES?
A good flexible remuneration plan allows a company to manage, without having to make a large financial investment, the products and services that its employees need. What does a flexible remuneration plan include? We are talking about food, childcare for children, public transport or training for companies. This model means that the employee invests part of their salary in products and services that will allow them to enjoy them at a lower price than the market price.
More and more companies are realising that salary is not the only form of remuneration that can be offered to employees. A flexible remuneration plan means offering different services to employees, but without forcing them to choose any product package. In addition, the company can promote other types of remuneration models, including social benefits, agreed by agreement or on an individual basis, and other models.
The advantages of flexible remuneration for the company
Flexible remuneration offers a multitude of benefits for employees, but also for companies themselves. The company has the option to choose the services it wants to offer its employees according to their needs. These are the main advantages of flexible pay for organisations.
- Attracting and retaining talent: in certain sectors, offering flexible remuneration as training is key to negotiating and making employees decide whether to stay with the company or seek new challenges. With flexible pay, employees feel more valued and cared for, as they have the feeling that the company cares about their needs.
- Flexible pay increases the employee’s purchasing power, but without increasing the company’s salary. With flexible remuneration, employees can spend up to 30% of their gross salary on these services free of personal income tax.
- Helps work-life balance: the products and services that companies can offer to employees with flexible remuneration improve the day-to-day life of employees, which significantly improves the working environment.
- Engaged employees: employees perceive that the company is interested in their daily needs, facilitating savings and work-life balance. Thanks to flexible pay, employees are more committed to the company.
- It reduces absenteeism and increases productivity: motivated and happy employees improve absenteeism and reduce job rotation.
- Investing in their training is investing in the company’s results: flexible remuneration as training is one of the best choices for companies to help their employees grow personally and professionally.
- It improves the company’s image: the employee’s perception of a company can change with flexible pay and this contributes to improving the company’s culture.
Benefits of flexible remuneration for employees
As mentioned above, employees receive many social benefits through flexible remuneration schemes. These are the main benefits that a company’s employees can obtain.
- Freedom of choice of services: the remuneration allows employees to choose how much of their salary they want to spend on products and services that are exempt from personal income tax. The aim is to improve their quality of life and cover their needs. In this way, the employee feels more responsible and able to improve their purchasing power.
- It is voluntary: not all employees want this service. It is very important that the company knows how to convey all the benefits that the flexible remuneration plan can have for them.
- Savings for the employee: the salary that is allocated to flexible remuneration is deducted from the gross salary. This means a reduction in the taxable base used to calculate the IRPF payment to the tax authorities.
- Helps to reconcile family life: workers can take their children to nursery school and benefit from the tax advantages of the childcare cheque.
- Improves their quality of life: By benefiting from the advantages of a flexible remuneration plan, employees are covered for basic necessities (food, childcare, transport, medical insurance, training, etc.). In addition, the employee feels more motivated and committed because he/she perceives that he/she is valued and cared about, his/her quality of life will improve and he/she will be happier.
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. The most popular training courses tend to be in languages, as they can be applied to any sector and are a boost for the employees and the company.