- Labor legislation.
- Negotiation with the unions.
- Regular practice in the market, sector …
- Attraction and retention of talent.
- Interest of employees for this type of products.
- Reduction of costs for companies with regard to giving it as monetary.
- Awareness of the social responsibility of the company.
- Although the origin can be disparate, the result obtained is closely related to employee well-being and motivation, which makes it much more profitable forthe company since it will have less turnover, less absenteeism and greater attraction of talent.
Either to implement a policy of wellness , conciliation, use of new technologies or social security, the amount of benefits or services that we can offer our employees is endless and why its implementation as well.We can offer flexibility, take care of the employee’s health, think about his future, save for him. All these benefits will be means to get that employee is more motivated and in the end can perform more. In short, that the company achieve its results.If we also have tax advantages and / or quotation on these products, their appeal will be much greater, but we will never have to lose sight of their initial objective.One step further in these social policies will be the employee’s active participation through what we call flexible remuneration systems or a-la-carte compensation. We can allow the employee to change the benefits we are offering them, or give them the possibility of “buying” from their salary the benefits that best suit their needs. This, again, will allow the employee to be more motivated and therefore can contribute much more to the company.
- CURRENT TREND IN BENEFITS
Currently, up to four generations coexist in our companies, each with their needs and motivations:
- ‘Babyboomers’ (between 1945 and 1965).
They value benefits related to pensions and health. Satisfied with the schemes of usual benefits in companies because they are schemes designed by their generation.
- Generation ‘X’ (from 1965 to 1978).
They value benefits related to pensions, health and flexible hours that allow reconciling family life and work life.
- Generation ‘Y’ (from 1979 to 1992).
He values the development of his professional career, training and access to easy advice on financial products as well as time flexibility and technological products.
- Generation ‘Z’ (mid 90’s until now).
Little access to benefits, are scholars or part-time employees. Faced with this complex situation, companies offer their employees full remuneration packages with the flexibility to adapt to the diversity of their workforce. Therefore, it is increasingly common to speak of total compensation and flexible compensation.
Let’s see the scheme: TOTAL COMPENSATION = MONETARY + FIXED BENEFITS + FLEXIBLE BAG + VOLUNTARY BENEFITS.
- Fixed benefits
- The company establishes them.
- Flexible bag
- Paid by the company to spend on other benefits that are not fixed or to improve / increase the fixed benefits.
- Voluntary benefits
Those that the employee pays with his salary, be it of the gross salary or of the net salary.The tendency of large companies is to offer a package of Fixed Benefits (which the employee can not change), and a flexible package of benefits that the employee will adapt according to their needs. These flexible benefits may also be, as we have already mentioned, purchased directly by the employee.The “fixed” package will be composed of those benefits that the company believes are important for its employees and that can not give rise to change for other benefits. The clearest example could be life insurance. The company offers it to the employee without the possibility of change to avoid that in the event of a tragic event, such as a total disability, the employee still has his compensation.The flexible package would consist of a “flexible bag” that the company gives to the employee so that he / she decides in what to spend it. The company makes several policies available to the employee and he decides to invest that bag based on his personal or professional moment.Finally, there is the possibility that the employee voluntarily buys more benefits. This purchase can be for an economic advantage (which can give us for example collective insurance), for a tax advantage (which have certain products included in the IRPF law) or ease of purchase (it is understood that the company will offer products with a proven quality / price ratio).Let’s look at some social policies included in companies in our country.
The objective of this policy is to take care of the health of our professionals. A healthy employee will be an employee who performs better and who has less medical losses at the same time. Therefore, it is clear the return on investment that a policy of this type can give us beyond a fiscal saving or a non-contribution to social security.Within the policies of wellness we can find different benefits or services. We detail the most common.
- Health insurance
- It is the star product of social benefits. Through this product the employee will have great benefits such as:
You do not have to wait for waiting lists.
You can have a second opinion.
You can adapt your schedules to your personal and professional life.
You can perform a health prevention function.
Medical insurance may have more or less coverage and in other countries it is quite common for the company to offer a basic package and for the employee to “pay” for other services that are more suited to their needs.
These benefits can be the possibility of acquiring a reimbursement product, dental, psychology, smoking cessation programs, programs to reduce cholesterol, physiotherapist, personal welfare programs …
The objective of this policy is to offer the employee the possibility of reconciling his personal life and his professional life. This will give us more motivated and committed employees with the company and at the same time more profitable employees.Among the benefits offered in this category would be: schedule flexibility; purchase of extra days of vacation; helps daycare; life facilitators.
The objective of this policy is closely related to conciliation. We will offer these products to facilitate the approach of the employee to his office: car renting / Renting motorcycle; plus transportation; transportation checks; company mobile.
- Social forecast
Products aimed at covering the social welfare of the employee: Life and accident insurance (assistance to the family in case of death and help to the employee in case of total disability); savings and retirement plans.
- Professional development
Products that adapt to the professional growth of the employee: general training; language training; specific training of the position; I use new technologies.
- Help dependency
Products aimed at helping employees on issues related to dependence: home assistance; telecare; convalescence service.
In summary, we can say that companies are moving towards a total compensation policy that includes different remuneration concepts. These concepts are increasingly flexible to adapt to the needs of each employee.