When it comes to designing an employee compensation plan, many companies face a difficult decision.Should we opt for company-funded social benefits or allow employees to manage part of their pay through flexible remuneration? Each option has its advantages, but it is not always easy to determine which best suits the needs of the team and the objectives of the company.
If you find yourself in this situation, on mixed model can be the ideal solution. This strategy combines the best of both worlds, allowing the company to subsidise certain essential benefits while offering employees the possibility to supplement their compensation with tax advantages. This creates a more equitable, flexible and attractive system that benefits all parties.
The mixed model is a comprehensive compensation system that combines two essential elements: the social benefits in a grant and the Flexible remuneration.
It is based on a flexible approach that allows employees to adapt their compensation package to their personal needs, while the company can strengthen its value proposition and improve its attractiveness in the labour market by also offering non-salary compensation.
As already mentioned, the mixed model works by combining rFlexible distribution and social benefits a grant to optimise employee compensation. With flexible remuneration workers spend part of their gross wages on products and services (with all foreseen limits). These amounts are exempt from personal income tax., which increases the employee's purchasing power without generating additional costs for the company. These services can be managed by the company through platforms such as Edenred Flex.
On the other hand, Social benefits in the form of subsidies are benefits fully funded by the company above basic salary.. These benefits can include services such as meal vouchers, transport vouchers, childcare and more. What differentiates it from flexible remuneration is that the company assumes the full cost of the service, whereas flexible remuneration is within the base salary and therefore the costs are borne by the employees.
In summary, with the mixed model, the company offers its workers the possibility of using part of their salary for flexible remuneration in services they prefer. Furthermore, it adds an extra amount to their salary so that employees can spend it on the same services or on others.
At the present time, professionals are looking not only for good financial remuneration, but also for a benefits package that provides them with security, flexibility and a better quality of life. In this context, the hybrid model is positioned as an innovative solution offering advantages to both companies and employees.
Some of the Edenred options that can be integrated into this model are:
The mixed model is presented as an innovative and balanced solution for employee compensation. Implementing this model not only strengthens the relationship between the company and the employee, but also contributes to a more competitive and sustainable work environment.
Still haven't decided which employee benefits package to choose for your company?Contact with us and we'll provide you with all the support you need to choose the most suitable one for you!
