Fringe benefits and employee motivation

Non-wage payments compensate for certain expenses incurred by the employee in the normal course of his or her work.. This type of payment allows the company to remunerate the worker for items as varied as food, work clothes or transport, among others.

Article 26.2 of the Workers' Statute regulates, such concepts, The benefits and indemnities are social security benefits and indemnities, indemnities for expenses incurred as a result of the work activity and indemnities corresponding to transfers, suspensions or dismissals.

None of these payments can be considered to be one of the WAGE RATES existing in Spain. Therefore, when they are included in a payroll, they are included as non-wage payments. For more information, we recommend this article on salary supplements and to know which ones are and which ones are not.

The effect of fringe benefits on the workforce

The main effect of non-wage payments on the workforce is an increase in the purchasing power of employees.

Compensation for travel expenses, travel allowances, currency losses, delivery of products at a lower price than normal in company canteens, work clothes or transport expenses are some of the items that increase the income that the company pays the employee's salary each month.

Recently, a study which sought to find out whether there is a correlation between wealth and happiness.. The results are striking:

• Correlation between average wage and happiness. The industries with the highest correlation scores between average weekly earnings and happiness were retail trade and repair -92.01%-, accommodation and food service activities -88.91%- and education -88.59%-. In these cases, as earnings increase, so does happiness. But the opposite is true for sectors such as mining and quarrying -22,15%-, professional, scientific and technical activities -26,18%- and manufacturing: chemicals and chemical products and man-made fibres -33,22%-, which reported the lowest correlation. These are often demanding and very stressful careers, which they compensate for by offering decent salaries., but this does not necessarily mean that happiness levels will increase in the environment. As the physical and mental strain of these roles will remain at the same level, despite offering a higher weekly gain. Health is greatly affected in these races and it is something that cannot be paid for with the benefit of increased purchasing power. with non-wage payments.

• Correlation between anxiety and average weekly earnings. The industries with the highest correlation between average weekly earnings and anxiety were Retail Trade and Repairs -74.52%-, Manufacturing -72.07%- and Engineering and Allied Industries -70.67%-. Retail trade, commerce and repairs are shown to have the strongest correlation between happiness and their wages, but these industries also have the highest correlation with anxiety levels.. Anxiety can be confused with unhappiness, but they are two different emotions and can coexist.. We can assume on the basis of these results that, As wages increase, so does job responsibility., which can generate more anxiety in an employee. Surprisingly, health and social work, an industry notorious for high levels of stress and anxiety, had the lowest correlation with only 53.40%. However, anxiety does not seem to increase with increasing wages.

• Bonuses and correlates of happiness. In many industries, bonuses and fringe benefits are offered to employees, which can increase productivity and morale. In some cases, they can provide greater happiness, as demonstrated, for example, by the construction sector with a correlation of 41%.

In general, we can see that money can equal happiness, but it all depends on the job function and whether or not it requires sacrificing one's mental health to achieve it.

Alternatives to non-wage payments

The flexible remuneration or remuneration in kind is a sound alternative to the non-wage payments. When this system is used, instead of compensating for transport costs by paying a few euros extra each month for transport, the employee can be offered Transport Ticket.

This ticket is exempt from income tax, so not only does it cover these expenses, but it also leaves a few euros extra in the account at the end of the month. And instead of paying for your meals, you can propose to use Ticket Restaurant, which ensures the same advantage.

One of the benefits of such solutions is that they not only have a positive impact on staff motivation and productivity, but also on staff satisfaction.

These are concepts that can be tailored to the current needs of the employee and his or her family to ensure that the most suitable solution is always offered.