More and more companies are leaving aside the most conventional remuneration models and, they are betting on more innovative and flexible remuneration policy models, withthe main objective of making your employees feel satisfied and valued, which will result in increased productivity, a way to generate commitment, and attract and attract talent.
An effective remuneration policy keeps workers motivated and committed to the company’s objectives and values, and it is key to implement a remuneration policy that includes a sized, coherent and equitable wage structure,focused on growth opportunities, personal employee growth and the reconciliation of personal and family life.
Therefore, at AYCE Laborytax we will show you some examples of remuneration policy models for companies willing to make a difference, which go beyond a only fixed remuneration, which is the formula that until now has generally been applied in companies.
What is a remuneration policy?
Remuneration policy is the system a company has to give back to its workers, which is important that it is fair and equitable for employees, in order to ensure the satisfaction of each worker and to make them feel valued, and also for the company, since in case of spending more on workers’ pay than they should, the company could enter into a liquidity problem.
Innovative remuneration policy models to satisfy your employees
Until now traditional models were only fixed remuneration, but this has changed, and more and more companies are opting for models with a fixed + variable remuneration.
In this way, the workers are insured a fixed remuneration that will have been previously agreed with the company, plus a variable remuneration,which will depend on the objectives that have been achieved and the performance of each worker.
This model is very effective at motivating workers,but for its proper functioning it is essential that this model is well designed, having a clear system of measurement of results that applies equally to all employees.
In the remuneration policies of companies, emotional wages are becomingmore common, where intangible elements come into play, which go beyond economic remuneration, are of clear emotional aspect and are highly valued by workers.
Emotional salary refers to all those benefits that are not economic and that a company offers to its employees,such as extra vacation days, offer vocational training in charge of the company, give opportunities for growth, etc. In short, all those benefits that influence a worker’s well-being, but have nothing to do with money.
It is a fact that emotional wage motivates workers and is a magnet to maintain talent,in addition to offering other benefits such as a better working climate, lower staff turnover rates, low levels of absenteeism, etc.
To this day a worker who does not feel valued is a risk to companies, and there is nothing worse than an employee knowing that his partner earns more than him. In fact, it is one of the most uneasy issues in the world of work.
For this reason you must apply formulas aimed at achieving the balance between internal equity and external competitiveness,which makes all workers feel valued for their work.
Develop a Remuneration Equality Plan
In order to eliminate potential gender gaps, it carries out a Plan of Equal Paybetween men and women, regulating gender pay equality and ending the pay gap.
The development of a Remuneration Equality Plan will be mandatory for all companies with more than 50 workers.
A pay equality plan guarantees the same pay to men and women,provided that work of equal value is carried out. In this way, your workers will be certain that a man will only charge a woman.
Flexible remuneration systems
Today we must adapt to the new times and lose the fear of the word flexibility. Flexible remuneration systems, which end immovableand 100% face-to-face schedules,are becoming more common, favouring other formulas such as teleworking or work for objectives or fulfillment of tasks.
Also, in terms of pay, workers may receive one part in money and another in the form of products or services,such as health insurance, childcare checks, diet vouchers, etc.
How to choose the most appropriate remuneration policy model for your business?
There are a wide variety of different remuneration policies, and our advice is to make a tailored remuneration policymodel, leaving behind standardized strategies, which are proven to be increasingly ineffective.
You have to look for remuneration policy strategies that fit the needs of your company,and to do this you have to analyze different factors, such as the economic situation that the company is going through, the situation of the workers, analyzing the collective agreement, etc.
The reality is that there is no standardized remuneration policy that is effective for all companies, but that is to look for one that adapts to the needs and philosophy of each company, capable of attracting and retaining talent, ensuring the satisfaction of workers and the good working environment.
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