Making employees feel motivated, comfortable and engaged is one of the biggest challenges for any company. When people enjoy their work and perceive that the company cares about their well-being, the results are reflected in productivity and talent loyalty.
One of the most effective ways of achieving this is through the social benefits for employees, This is a practice that more and more companies in Spain are incorporating into their human resources strategy.
The social benefits are benefits or services that companies offer to their employees in addition to their salaries. They do not form part of the payroll, but are intended to improving workers' quality of life and well-being, helping them to reconcile their personal and professional lives.
The following are considered non-monetary benefits, They are not cumulative or exchangeable for cash, and are non-remunerative in nature. As such, they do not give rise to deductions or additional contributions.
Examples of social benefits are subsidised meals, public transport, health insurance or further training. Their purpose is clear: increase team satisfaction and motivation, The company's commitment and image will be strengthened at the same time.
Although the two concepts are often confused, there are important differences between the two. social benefits and the flexible remuneration.
The flexible remuneration allows the employee to decide how much of their gross annual salary they wish to receive in cash and how much in products or services - such as food, transport or childcare. This allows you to optimise your take-home pay at no additional cost to the company, since certain services are exempt from personal income tax up to the legally permissible limit.
In Spain, tax legislation provides that the part of the salary that may be received in kind may not exceed 30 % of the gross annual salary. This limit applies only to flexible remuneration, as it is part of the employee's salary.
On the other hand, the social benefits are additional benefits that the company offers over and above salary. They are not deducted from the employee's pay and are therefore not subject to the 30 % limit. They involve an additional cost for the company, but they are 100 % deductible for corporate income tax purposes and contribute directly to the well-being and motivation of the team.
In addition, while flexible remuneration is individual and optional, social benefits are usually applied collectively, to the whole workforce or to certain groups or departments.
Despite the differences between social benefits and flexible remuneration, The services offered can be the same in both formulas. Goods, entitlements or services such as childcare, restaurant or transport services, which serve as a financial supplement to the worker and help him/her in his/her economy.
Let's take a closer look at some examples of social benefits.
Social benefits can take different forms depending on the needs of the team and the company's strategy. In Spain, among the social benefits most valued by employees we found:
Ticket Restaurant es, for years, one of the social benefits most highly valued by workers and one of the most common, as it is an important economic advantage for both companies and employees.
For companies, this social benefit is 100% deductible from corporate income tax. For employees, it is exempt from income tax up to €11 per working day The amount you save per year depends on your salary. Calculate your savings in our calculator.
The Transport Ticket encourages the use of public transport to pay for journeys between home and work. It is prepaid and can be used to purchase public transport tickets for passengers, including bus, tram, train and metro.
For companies, this service is 100% deductible from corporate income tax. For employees, it is exempt from personal income tax up to a maximum amount of €1,500 per employee per year.
The Childcare Ticket consists of the payment of childcare through the company, a social benefit which promotes the reconciliation of work and family life.
It can be offered by companies working parents with children in the first cycle of pre-school education, i.e. from 0 to 3 years of age.. It allows those workers to obtain a tax saving of up to three monthly payments per year on the payment of their child education centre.
For companies, this service is 100% deductible from Corporate Tax. For employees, Edenred Crèche is fully exempt from income tax.
The Edenred Gift Card is a flexible and customised solution for one-off campaigns, incentives or employee recognition.
It is nominative, rechargeable and can be adapted to different budgets, offering a modern and motivating way of rewarding performance.
An increasingly valued benefit, especially in environments where employee wellbeing is a priority.
It allows access to a faster and more personalised healthcare. For companies, the payment of health insurance is deductible and reinforces the perception of care towards the worker.
An increasing number of companies are investing in improving the skills of your employees through subsidised courses linked to the workplace. This leads to an immediate increase in productivity and competitiveness.
It is an excellent incentive for the professional growth and motivation of employees and also for companies, as it attracts talent. In our dedicated article you will find all the most valued employee benefits.
The social benefits in the company provide a wide range of advantages, not only for the workers, but also for the company itself.
The introduction of social benefits plays a crucial role, as they are an addition to the employee's own salary that makes the employee feel more rewarded for the work done. Let's take a look at the following some of the most important advantages for the company:
Social benefits also bring numerous individual advantages:
Designing an effective benefits policy requires planning and team knowledge. Here are the key steps:
The needs of each employee are different, For this reason, the social benefits that motivate them are often also motivating.
It may happen, for example, that an employee who has just become a father is very excited and finds Edenred Crèche (ex Crèche Ticket) very useful, while another employee who does not have his own vehicle and has no children needs Edenred Mobility (ex Transport Ticket).
For this reason, before establishing any kind of social benefits, it is very important to know the expectations and needs of the workers.
To obtain this information meetings, questionnaires, and even talking to employees who have been with the company the longest.
These practices can provide valuable information about which needs are most common among employees. This will allow us to design more personalised experiences for each group of employees.
Before deciding on one supplier or another, it is important to assessing the quality and variety of benefits offered, The new system will ensure that they are tailored to the needs of the employees.
In addition, the supplier's reputation, responsiveness, experience in the sector and the tools offered for management should be considered. Analysing the opinions of other companies and carrying out a cost comparison is also essential.
A good supplier will not only improve employee satisfaction and motivation, but will also contribute to the success and competitiveness of the company.
Depending on the needs of the employees, social benefits will be selected. Afterwards, it is advisable to start slowly by launching social benefits and testing them in order to check cóThe Committee is pleased to note how well it has been received by workers. In this way we can select the social benefit(s) that work best.
We will have to select the tools that best help us to carry out a detailed analysis of each action and the final impact on the employee and the company.
This can be supported by software that automates all these tasks and makes it easier to measure the effects of employee recognition.
Several studies confirm the direct relationship between well-being at work and productivity.
A report by the Wall Street Journal y Opener Institute for People indicates that the happy employees are 36 % more motivated and 31 % more efficient.
In the same vein, the study Productivity and healthy business of IESE Business School concludes that investing in social benefits reduces the average cost per employee by 26 % through reduced absenteeism and improved engagement.
Therefore, the social benefits are not an expense, but a strategic investment. With a moderate investment, companies can increase team satisfaction, strengthen corporate culture and improve their competitiveness.
The social benefits for employees have become an essential element for any company that wants to attract and retain talent.
They improve motivation, productivity and brand reputation, while offering tax benefits and strengthening the bond between employer and employee.
If you are not clear about what benefits to implement, contact EdenredWe help you design a tailor-made plan that suits the needs of your employees and the objectives of your company.
