There was a time when people thought money was the most important aspect when deciding for a job. But that’s changing. Obviusly we are not saying people should not be paid what they deserve for their work, we are just saying there are things companies can offer their employees that are more important than money and they are called emotional salary.
Like the name infers, emotional salary means adding emotional aspects to an employee’s monetary retribution, products or services that mean more to an employee than just money.
On the basis that money is the main way for the employee to get compensation for their work, an emotional salary has three major advantages on just a salary rise:
- Psychological well being: When employees see the company caring for their personal needs their feel motivated and their work recognized which helps reduce stress.
- Reconciliation: Offering flexible work hours or benefits like child care helps parents conciliate their work and family life.
- Opportunities to selfdevelopment and improvement: Talent development courses, coaching, mentoring, learn new abilities and languages… Employers should help their employees improve as people and as professionals.
There are times when companies can’t increase their employees’ salaries but want to compensate them for their hard work, perhaps they need to improve a new job offer to attract the best talent, or the company just wants a better employer branding. All that can be done offering an emotional salary.
One of the main reasons companies are beginning to include emotional salaries in their retribution policies is the appearance of millennials in the working environment. Their is a generation who values more the possibility of conciliation than money and needs constant professional challenges. This new professionals are qualified, have experience in a wide variety of things and have lived in an environment of uncertainty that makes them see change as something good.
- Things to have in mind with millennial employees:
- 60% of employees between 18 and 34 will quit their job if their boss forbade them the use of a mobile phone
- 2 /3 millennials could change job at any moment and probably will do so in less than 2 year of having started in a company, according to a survey by Deloitte.
Attracting new talent is complicated, more so if the positions are technical ones. For these new generation of workers, location, social benefits and flexible hours are as important as money.
As said above, retaining millennial employees is going to be hard, that’s why companies should focus on offering a good career plan where the employee keeps learning and getting promoted to do new things. For those who are already thinking about leaving the organization just a 100€/month rise can not be enough, that’s why more and more companies have started offering benefits and compensation plan, so their employees can take care of their usual expenses for free or saving money while doing so. Companies who pay you gym membership, offer health insurance and help you pay for your out of the office meals can achieve an emotional connection with the employee and retain them for longer.
- Flexible hours and teleworking: Working 8 hours a day but without an strict timetable. They don’t need to be at the office, what’s important is that employees do their job correctly. That is specially attractive to employees with children, other people at their care or even pets. They can ask for a “working from home” day and conciliate their work and family life.
- Education and promotions: An employee wants to keep up with the times and new technologies so they can do their job and be promoted to new responsabilities. There are programs that help companies offer courses for free or a far smaller price.
- Child care: Millennials or not, people have children or want to. The best way to help employees conciliate is by helping them with child care and kindergarten.
- Spaces for leisure: Office conditions are important too, they affect directly to the work environment and relationships. Getting a room for leisure where employees can relax and disconnect for a while is something everyone will be grateful for.
- Volunteer jobs: The company can offer free hours for employees who want to volunteer for a good cause, help them feel better about themselves.
- Flexible Retribution: also called custom compensation, allows employees to choose from the services offered by the company what they need most. Normally, these plans go with interesting savings for the employees at the end of the month.
- Social benefits: Health care, restaurant or transportation cheques paid by the company are the best way to recognize and employee’s performance and retain talent.
Do you want to help you employees schedule their working hours? Get Factorial and be aware of their absences, holidays and working from home days. It’s free!