What is emotional pay and what are its advantages?

The emotional wage is the set of benefits that workers obtain from their work and that are not linked to monetary retribution, but to the emotional retribution that the performance of their work brings them. In short, the emotional wage is the set of emotional rewards that a worker receives for his or her work. It is a fundamental factor that all companies must take into account, as a high emotional wage translates into more satisfied workers and, consequently, into a more satisfied workforce. lower turnover and higher talent retention, among many other benefits.  

The set of emotional rewards encompasses aspects such as a good working environment, social benefits, flexible working hours, a job perspective that allows the employee to grow and develop professionally, etc. 

In many cases a worker's emotional wage is more important than money that they can receive for doing their job. An increasing number of workers are attracted to a company because of its strong and healthy corporate culture, flexible working arrangements or the various social benefits it provides to its employees. This form of employee remuneration complements traditional salary concepts, adding emotional aspects which often mean more to an employee than money. 

However, emotional pay is not a substitute for a salary, as monetary remuneration is the main way in which an employee is compensated for his or her work, but the use of emotional pay is associated with significant benefits, for both the company and the employee. 

Advantages of emotional pay for the company 

The emotional wage is fundamental for any company, This is one of the main factors that determine the satisfaction of employees in their jobs. This translates into a very positive impact on the company. 

The aim of emotional pay is to meet employees' expectations, by linking them emotionally to the company, increased well-being and loyalty with the brand. An emotional salary offers the company a number of key benefits: 

• Increased commitment and loyalty to the company. When a company opts for emotional pay, it immediately results in the reinforcement of a bond that will evolve with reciprocal commitment. A happy employee is loyal to his or her company, acquiring a vision and full commitment in the development of his or her tasks. 
• Low cost. There are times when companies cannot afford to increase their employees' salaries but want to compensate them for their good work. On those occasions, this option is the best, as it solves the present need, ensuring the positive impact of results that last over time, while helping to attract the best talent and enhance the employer brand. 

• Attracting and retaining talent. Emotional pay is a highly effective motivational method for attracting the best talent to a company. Emotional pay offers an attractive image to generate expectations in future candidates and at the same time helps to retain better trained workers with higher production rates. 
• Reduction of absenteeism. A happy employee works and performs better. Emotional salaries make workers happy and motivated, improving productivity and performance. 
• Low staff turnover rates. Satisfied employees do not seek to change jobs and, as a result, turnover rates drop significantly.  
• Reduction of recruitment and training costs. By not having to find and train new employees, the costs of these activities are considerably reduced.  
• Higher production rates. All of the above points translate into higher production rates, which have a positive impact on the company's profits. 

Advantages of emotional pay for workers 

It is clear that money is the main way to ensure that a company's employee is compensated for his or her work. However, no one doubts the the importance of emotional pay for an employee and of the benefits that it provides: 

• Increased motivation and psychological well-being. When employees perceive that the company takes care of their personal needs and recognises their work, they feel more valued and motivated, reducing stress and increasing their commitment and motivation.  

• Reconciliation. By offering flexible working hours or social benefits such as childcare, the company is helping to reconciling work and family life, This also increases employee productivity. 
• Opportunities for personal and professional growth. Sometimes emotional pay takes the form of opportunities for self-development and training. Training, education coaching or the mentoring help employees acquire new skills that foster their development. 

Types of emotional wage  

As we have just seen, in order to promote a good emotional salary for workers, it is necessary to take care of their working conditions beyond the simple economic retribution. In other words, it is necessary to promote the happiness and conciliation of employees in their daily activities.  

In many cases, wage increases are not enough to retain a worker in a job if he or she is not satisfied with the job. It is therefore essential to improve the non-material conditions of workers. Here are some of the most important The most commonly used types of emotional wage today: 

• Flexible schedules. Flexibility in working hours is one of the main factors in increasing the emotional wage of workers, as it allows them to better adapt to other activities and daily needs outside of work.  
• Telework. It increases the adaptability of workers and improves their perception of their own job and of the company as a whole.  

• Career plan. It is essential for companies to have a professional career plan for their employees. These plans motivate workers and increase their emotional salary within the company, which helps to retain talent and increase their involvement.  
• Social benefits. The fact that the company offers certain social benefits is a key element that directly affects the emotional salary of workers. Some of the most common proposals are the Transport Ticket, the Restaurant Ticket or the Childcare Ticket, among others.  
• Flexible remuneration. If the company is unable to invest more resources in social benefits, an alternative is an Flexible Remuneration Plan for workers, allowing them to increase their purchasing power without additional financial outlay from the company. 
• Training programmes. To have continuous training options available to further improve the skills of employees. 
• Occupational health initiatives. For example, courses on eating habits, stress management workshops, agreements with gymnasium bonuses or ergonomic material for employees, etc.  

• Working environment. It is essential that the company has measures in place to promote a sense of belonging to a group and camaraderie. This can be achieved by promoting teambuilding o have recreational spaces in the office.  
• Mission, vision and shared values. A company's Corporate Social Responsibility (CSR) plays an increasingly important role in a candidate's decision to choose one company over another. One in two professionals would not work for a company with a bad reputation, even if they were offered a higher salary. If the employee shares the company's philosophy, it will help them to feel happier in their job. 
• Acknowledgements. It is essential that superiors know how to value an employee's achievements. This can be done through simple actions such as public recognition or through measures such as bonuses or incentive trips, for example. 

As we have just seen, there are multiple types of emotional wage. This does not mean that a company has to offer all of them or that they apply the same incentives to all workers, but that ideally they should be personalised for each worker and each type of company.  

The emotional wage has now become a important resource for companies to improve the well-being of their employees, as the profile of the new workers demands certain aspects that a financial remuneration does not cover. 

Companies with a good emotional wage strategy are very much best rated The wage gets employees to come to work, but the salary gets employees to come to work, but the wage gets employees to come to work, but the wage gets employees to come to work. The wage gets employees to come to work, but the emotional wage makes it possible for the employee is committed to the company through purpose, appreciation, autonomy, support and involvement.    

Discover all the possibilities that Edenred offers companies to support their emotional salary policies that will allow them to have completely satisfied and involved workers in their different jobs. Request information without obligation.