Fringe benefits and employee motivation

The effect of fringe benefits on the workforce

The main effect of non-wage payments on the workforce is an increase in the purchasing power of employees.

Compensation for travel expenses, subsistence allowances, petty cash discrepancies, supplying products at below-normal prices in company canteens, work clothing, or transport costs are some of the items that increase the income an employer pays to an employee each month in the form of wages.

Recently, was carried out study what was trying to find out if there is a correlation between wealth and happiness. The results are striking:

• Correlation between average salary and happiness. The industries that scored highest with a correlation between average weekly earnings and happiness were retail trade and repairs -92.01%-, accommodation and food service activities -88.91%- and education -88.59%-. In these cases, as earnings increase, so does happiness. But the opposite happens in sectors such as mining and quarrying -22.15%-, professional, scientific and technical activities -26.18%- and manufacturing: chemicals and synthetic or artificial fibres -33.22%-, which reported the lowest correlation. These are often demanding and very stressful careers, which they compensate for by offering decent salaries., but this does not necessarily mean that happiness levels will increase in the environment. Since the physical and mental strain of these roles will remain at the same level, despite offering a higher weekly wage. Health is greatly affected in these races and it is something that cannot be paid for with the benefit of increased purchasing power. with non-wage payments.

• Correlation between anxiety and average weekly earnings. The industries that saw the highest correlation between average weekly earnings and anxiety were retail and repairs —74.52%—, manufacturing —72.07%— and engineering and allied industries —70.67%—. Retail, trade and repairs are shown to have the strongest correlation between happiness and their wages, but these industries also have the highest correlation with anxiety levels.. Anxiety can be confused with unhappiness, but they are two different emotions and can coexist.. We can assume on the basis of these results that, as the salary increases, so does job responsibility, which can cause an employee more anxiety. Surprisingly, health and social work, an industry famous for its high levels of stress and anxiety, reported the lowest correlation at just 53.40%. However, anxiety doesn’t appear to increase with rising salaries.

• Bonuses and correlates of happiness. In many industries, bonuses and fringe benefits are offered to employees, which can increase productivity and morale. In some cases, they can provide greater happiness, something demonstrated, for example, by the construction sector with a correlation of 41%.

In general, we can see that money can equate to happiness, but it all depends on one's job and whether it requires sacrificing one's mental health to achieve it.

Alternatives to non-wage payments

La Flexible remuneration in-kind remuneration is a solid alternative to non-wage payments. When this system is used, instead of compensating for transport costs by paying a few euros extra each month for transport, the employee can be offered Transport Ticket.

This ticket is exempt from income tax, so it not only covers those expenses but also leaves a few extra euros in your account at the end of the month. And instead of paying for meals, you could suggest using Ticket Restaurant, which ensures the same advantage.

One of the benefits of this type of solution is that they not only positively impact staff motivation and productivity, but also their satisfaction.

These are concepts that can be adapted to the present needs of the employee and their family, to ensure that the most convenient solution is always offered to them at any given time.