Emotional Salary, Benefits, and Advantages in the Organization

After a period marked by the economic downturn and a shift in employee motivations, companies have been forced to apply creativity in areas that seem less creative at first glance, such as employee compensation. This has led to a situation where, unable to offer higher financial compensation, companies have opted for what has become known as the “emotional salary”

We refer to emotional salary when we talk about all those **benefits**, (whether **tangible** or not) that the company can offer its employees to improve their level of well-being and satisfaction without increasing their salary, with the aim of improving the worker's quality of life.

An example of this type of benefit is having a work schedule that allows for work-life balance. Iberdrola has been the first Spanish company in the IBEX-35 to implement a continuous workday, and with this measure, the company has increased its productivity, as well as reduced absenteeism and workplace accidents. In other words, it has reaped benefits after implementing the new schedule.

This is what it’s about: implementing incentives that improve the quality of the workplace, facilitate work-life balance, create an attractive corporate culture, and ensure that employee motivation translates into greater productivity through increased commitment and the achievement of goals.

Through emotional salary, which is based on Flexible Compensation, we improve workers' conditions, allowing them to maximize their paycheck through a package of various services offered as benefits. As we mentioned, this should not mean higher costs for the company but rather increased purchasing power for the employee, who can obtain everyday necessities—such as transportation passes, daycare payments, or daily meals—through the company, which are exempt from income tax.

Some of the characteristics of organizations where emotional salary has been implemented are:

Schedules: Presenteeism is not productive. Ensuring that our employees can balance their personal and work lives is the main characteristic of emotional salary. Schedules should be flexible so that they can be adjusted to the needs of each individual.

Employee Participation: In decision-making. It is a way to increase employees' commitment to the company and its goals.

Recognition: Enhancing motivation through recognition is another characteristic of a company concerned about the emotional well-being of its employees.

Training and Promotion: Encouraging professional development by offering career paths within the company and the opportunity to improve competencies and skills through training.

We must not lose sight of the new challenges posed in terms of talent retention. We refer to ensuring that valuable talent does not leave the company in search of better conditions in other organizations. Emotional salary allows for a personal adjustment that provides us with a way to attract and retain talent, which will undoubtedly be positively valued by the key individuals in the organization.

Thus, the perception of emotional salary will vary according to generations. For those born before the 1970s, a good retirement, health benefits, and recognition of their experience will be essential; for example, insurance and retirement plans, and recognition programs.

For those born between the 1970s and 1980s, we talk about work-life balance, conciliation, that is: flexible work schedules, offering them days off or the possibility of working from home (remote work); professional development and training that does not have to be related to their jobs, as well as career plans or coaching and mentoring programs.

Without a doubt, emotional salary is beneficial from the employee's perspective and an advantage that companies should leverage by studying the characteristics of their workforce and designing plans that best suit the individuals within it.

 

RELATED NEWS