WHAT ARE THE KEYS TO FLEXIBLE REMUNERATION?
You want your employees to be happy and your business to be successful. You’re wondering how you, as an HR team member, can strengthen your workforce and your company at the same time. Have you heard about flexible remuneration? Are you implementing this programme in your company?
Whether it’s the first time you hear about this or you’re already familiar with the term, you may never have thought of flexible remuneration as a way to increase the value you give your employees at the same time as you build solid foundations for the growth of the business.
With flexible remuneration, you can improve your employee’s day-to-day without it representing additional costs for the business. Let’s dive deep into the keys to flexible remuneration, shall we?
4 things you need to know about flexible remuneration
So, how is it possible to increase the value given to employees and strengthen the business without it representing higher financial investments for the company? Well, flexible remuneration comes as the answer to that question.
In case you’re not familiar with the term, flexible remuneration is a form of payment that includes a part of the salary in cash and another one in kind. This means goods and services, like food, transport, or training for companies, for example.
Let’s talk about 4 things you need to know about flexible remuneration:
- It doesn’t represent an additional financial investment for the company: while you’re paying the same salary to your employees, you’re increasing the value they get by giving them the power to decide whether they want 100% cash or if they want goods and services, instead.
- Exempt from taxes: The kind part of the salary is exempt from taxes, so usually the goods or services employees can access with this kind of payment are cheaper than if they paid them with their own money instead. This means they get to save money.
- Voluntary and customizable: With flexible remuneration, there’s no need to stick to a collective agreement (like it happens with social benefits or specific company policies, for example). Flexible remuneration is entirely voluntary (the employee can choose whether they want it or not) and customizable (they can decide which proportion of their salary they want to perceive as kind, up to a 30% limit).
- A win-win: You can include things like training for companies. This increases the seniority of your employees, which has a positive impact both on their careers and the company.
How to design a consistent and attractive flexible remuneration plan
So, as you read above, flexible remuneration can be significantly beneficial for your company. But you need to make sure it’s an attractive and consistent programme. Find some tips to make it happen next:
- Make an audit: What do your employees need? What are the business’s development opportunities? You can make a survey and a business analysis to see where you’re standing and decide the best way to approach improvements by implementing a flexible remuneration plan.
- Make sure your employees perceive it as a benefit: Flexible remuneration is still an unknown concept in many social and civil circles, so you make sure your employees see it as a benefit and understand the potential flexible remuneration brings to their personal and professional lives.
- Include training for companies as a form of flexible remuneration: Training for companies will strengthen your employees’ abilities and improve their performance.
- Get constant feedback: Your employees’ needs can change over time.
Why include training for companies as a form of flexible remuneration
Corporate learning is at the top ranking of reasons why employees choose to stay in a company. In today’s competitive business industry, attracting and retaining talent may be one of the main challenges organisations are facing.
So in order to be able to build a solid, engaged, and talented workforce, you need to offer them strong reasons to stay. Including training for companies as part of flexible remuneration is a great way to do it.
But you need to make sure it’s the training they need, value, and makes them feel capable of doing their jobs at their best. Learn about how to choose the best training for your company.
To sum up, including training for companies as a form of flexible remuneration brings the following benefits to your organisation:
- It increases employee engagement.
- It has a positive impact on the company.
- It’s a win-win without spending more money.
To sum up, flexible remuneration is the best way to increase the value you give to your employees while building strong and solid foundations for your business, and getting exponential revenue. ¿Are you ready to implement flexible remuneration?
A good place to start is offering soft skills training for companies as a form of flexible remuneration.
Soft skills are the base of all the abilities your employees need to manage both in their personal and professional lives. Here are some steps you can take towards implementing soft skills training for your company.