24 February 2025

The challenges of flexible remuneration for SMEs

woman gesticulates, talking to another woman in an office, in front of a laptop and next to a blue mug.

Table of contents

SMEs recognise the benefits of flexible remuneration, but often face barriers to its implementation. This can limit adoption, despite its benefits in attracting and retaining talent.

Lack of resources and time

In contrast to large companies, where HR manages the social benefits, In SMEs, these teams are often small and multi-functional. Implementing flexible remuneration can seem complex due to a lack of time, resources and expertise, as well as the diversity of benefits, which makes it difficult to manage.

 

SOLUTION: Simplify management with integrated platforms

Automation facilitates the integration of flexible remuneration in SMEs without increasing their workload. With tools such as Edenred Flex, The new HR department can manage benefits on a single platform, reducing paperwork and ensuring efficient follow-up, without the need for a dedicated HR department.

Tax and regulatory compliance

One of the main challenges of flexible remuneration is its regulatory and tax complexity. For an SME without tax experts, managing benefits and exemptions can be a challenge, with the risk of errors and penalties. In addition, frequent regulatory updates require constant adaptation, which can slow down its implementation despite its advantages.

 

SOLUTION: Expert advice to avoid mistakes

At Edenred, we help SMEs comply with current regulations and optimise tax exemptions. Our tools ensure cost control and profit security, allowing you to offer flexible remuneration with complete peace of mind.

Lack of team awareness

Despite its advantages, flexible remuneration is often perceived as a pay cut rather than a benefit. Many talents are unaware of its tax and social benefits, leading to mistrust and low adoption. Without clear communication, its impact on motivation and team well-being is limited.

 

SOLUTION: Communication and training for teams

Effective internal communication is key to the adoption of flexible pay. That's why we offer educational materials to help teams understand the benefits. By showing with data how it improves their purchasing power without impacting the business budget, SMEs strengthen the engagement of their talent.

Difficulty in designing an attractive offer with limited resources

SMEs, with limited resources, may see flexible remuneration as an additional cost or a complex administrative burden. However, it does not necessarily mean more expense, but a better allocation of resources. With scalable solutions and digital tools, SMEs can offer attractive benefits without increasing their labour costs, optimising the compensation and well-being of their teams.

SOLUTION: A modular solution tailored to SMEs

Flexible remuneration stands out for its adaptability, optimising resources without generating additional costs. Our solutions allow SMEs to choose benefits according to their budget and the needs of their teams. Moreover, as they are exempt from social charges, they maximise investment and improve the purchasing power of talent.

THE BENEFITS

Four reasons why small and medium-sized companies should not wait to adopt this flexible remuneration model:

  • Cost optimisation and tax exemptions
    Flexible remuneration helps SMEs to reduce social charges in Spain, thanks to tax exemptions in benefits such as Ticket Restaurant, aid to the transport o childcare. In a context of rising wages and inflation, offering non-cash but fiscally advantageous benefits is a key strategy to optimise total compensation.
  • Attracting and retaining talent
    Flexible remuneration strengthens talent attraction and retention. With solutions such as Edenred Flex, SMEs can offer a personalised experience, increasing talent satisfaction and engagement. It also reduces recruitment and training costs resulting from high turnover.
  • Improving the well-being of talent
    Workplace well-being boosts productivity and motivation. Appropriate remuneration improves financial balance and reduces talent stress. With Ticket Restaurant, SMEs facilitate access to adequate food, while Edenred Mobility promotes sustainable mobility and alleviates travel costs.

According to studies, talent that receives social benefits is more motivated, engaged and loyal to their company. By integrating flexible remuneration into their HR strategy, SMEs can strengthen the engagement of their teams and at the same time boost their performance.

Edenred Spain