Work better, not more. It seems that this formula, simple to say, but complex to implement, could pull us out of the crisis. But what does this have to do with pay systems?
In fact, a lot. Productivity and motivation must go hand in hand, human resources experts reiterate. But times are not ripe for pay rises.
A few hundred euros extra on any payroll would be a good incentive to encourage employees to improve in their work, rather than just clinging on to their job. However, such a measure is not within the reach of all organisations, especially in this day and age.
Yes, there are exceptions. Microsoft has announced that it is raising its employees' salaries so that they do not leave for Facebook or Google, as reported by The Register. Not all companies can say the same. Already in 2009, Hay Group warned in a study that, as a whole, 36% of organisations worldwide have implemented or were considering implementing pay freezes among their employees.
The Spanish payroll: are our remuneration systems motivating?
Today, spanish workers earn an average of 22,000 euros a year, 59% less than the EU average, according to Michael Page. The figure is not convincing and 57% of Spanish employees say they are dissatisfied with their pay and hours, according to a survey by the Adecco Foundation.
For their part, companies are not in a position to give more, it is complicated at a time of economic instability; unthinkable in some cases, especially in certain sectors that have been pushed to the ropes by the coronavirus crisis.
So many business leaders ask themselves “How do you stimulate staff engagement without adding zeros to their paychecks?.
The people in charge of the human resources team try to find solutions that motivate while respecting wages. Improving working conditions or using flexible remuneration solutions are some of them.
It can all pay off: the benefits of choosing flexible remuneration schemes
The flexible remuneration has become the girl everyone wants to dance with in times of crisis, and its use has doubled in Spanish companies. As defined by the blog specialised in the sector Remuneration, It is not about paying the employee more, but about paying better“, so that each professional decides how much he or she wants to be paid in cash and how much in products or services.
But what are the advantages of such a decision? Unlike other remuneration systems, this model of compensation policy makes it possible to increase employees' take-home pay by up to 30%, thanks to the tax advantages deriving from the personal income tax exemption for products such as Ticket Restaurant, Childcare Ticket or health insurance. The company differentiates itself as an employer and many of the tools used directly or indirectly support work-life balance policies.
However, a flexible remuneration system cannot be implemented in any old way. It is necessary to make employees appreciate the measures, tailoring them to their needs, and to communicate them well. Compensation must not lose sight of the company's objectives, values or long-term sustainability.
In the face of such demands, there is no need to tremble, as the allies in retaining the the best can be anywhere: the good climate, the flexible working hours, the training... The key is to find the right fit for every shoe. As businessman Carlos Delgado says, “Classic remuneration is dead, long live total compensation!.
Have you considered adopting other remuneration systems? Do you know what your staff think about flexible remuneration??
