We have already been talking about Complementary Social Welfare in other articles. CSR is one of the ways to improve the remuneration of our employees, as an alternative to a salary increase. We will see what options insurance companies offer us to be our allies in the incentivization of our employees.
Health insurance, savings plans or life insurance
Many companies begin to see the light after the crisis, and the red numbers turn into green at the end of the year, so we move from an era of lay-offs or salary freezes, to another in which our workers want to be duly rewarded again. One way to do this, and which insurance companies are proposing to us, would be:
- Subscribing to health insurance for our employees
- You contract a collective savings or pension plan where each employee contributes a certain amount, depending on their position in the company (they could also contribute an additional amount, voluntarily).
- Offer salary supplements as irregular income (in a multi-year plan format): in this way, they would enjoy a 40% tax exemption on this concept. This is highly valued by workers at a certain level, who are heavily penalized by the tax authorities.
- Paying for group life or accident insurance, which shows a concern for the family welfare of the company’s employees.
Why use these formulas in the face of a salary increase?
Many employers ask us this question and our answer is clear: in Europe, mainly in Central European and Scandinavian countries, which tend to be ahead in several respects, employees are highly valued.
To be able to work in companies that pay them health insurance, or contribute X amount to their pension plan, or reward them for good performance in a multi-year objectives plan.
Of course, all of this revolves around the work environment, work-life balance, and other elements that make up an appropriate employer branding to make our employees feel at ease.
The advantages of implementing these complements
What is achieved with this way of rewarding our workers is:
- Higher degree of loyalty and commitment to the company, which translates into talent retention (so important especially for the “key men”).
- Reduction of work absenteeism: a medical insurance allows you to visit specialists outside working hours, as well as to reduce waiting times for consultations, diagnostic tests and surgery.
- Increased staff motivation, resulting in better staff performance.
If you think you might be interested in any of these complementary compensation formulas, please contact us and we will find a way to achieve your goal.
