Inflation remains one of the biggest economic challenges facing both companies and teams. For many organisations, especially SMEs, it is not feasible to increase salaries significantly. However, the financial well-being of teams cannot be put on the back burner: it is a key determinant of motivation, productivity and talent retention.
Is there a way to improve purchasing power without increasing wage costs?
The answer lies in the flexible compensation, The new, efficient solution with advantages for both teams and companies.
The rise in the price of essential goods such as food, rent, energy, and transport has significantly reduced the saving and consumption capacity of talented individuals. This decrease in purchasing power not only affects their personal finances but also their mental health and commitment to the company.
Various studies indicate that financial stress is one of the main causes of concern for teams today, and that it can result in:
In this context, organisations need to act. But raising salaries is not always viable due to the economic context, tax burden, or limited budgets. Therefore, we seek options alternatives.
Flexible remuneration is a tool that allows teams to allocate a portion of their gross salary to products or services exempt from income tax. The result: their net salary increases without the company incurring additional costs.
It is a legal, simple, and fiscally beneficial strategy, allowing compensation to be adapted to individual needs. Here are some more common examples in Spain:
For the company, this model has multiple benefits: It does not increase the wage bill and contributions; it improves the perception of the remuneration package and requires a management simple if it is supported by digital tools ispecialised.
Because it's not just about money, but about trust, well-being, and the perception of personal value. When a company is committed to offering solutions that help its teams improve their daily lives, engagement grows.
Flexible remuneration works because:
Inflation directly affects the finances of talent, but not all solutions involve increasing salaries. Flexible remuneration is a smart and legal way to improve purchasing power, without increasing costs for the company.
At Edenred, we help companies implement tailored, effective benefit plans with real impact. Investing in financial wellbeing isn't just a responsible action: it's a competitive advantage in talent management.
