Trend is consolidating: seven in ten workers prefer lower pay in exchange for flexible benefit packages
The pandemic has changed consumption habits, including the way wages are “consumed”. Almost seven in ten Spanish workers (67%) prefer, for the second year in a row, lower economic remuneration if they receive in return a package of personalized social benefits, such as health insurance, the gym or audiovisual platforms.
This emerges from the second annual benefit trends study of Cobee, a digital platform that allows flexible and fully automated management of employee compensation, which reveals the growing importance of the value of benefits or “ salary emotional ” and how the plans Compensation companies are evolving through digitization: from rigid, outdated and generalist to flexible, modern and personalized.
As Borja Aranguren, CEO and co-founder of Cobee, points out, “three key metrics define the future of compensation: flexibility of benefits to satisfy each employee and strengthen ties with the company; digitization of processes and automation of tasks to facilitate their consumption and management; and better communication to understand the real value of non-monetary compensation ”.
Health, training and pensions, star plans
And what are the most popular benefits? Health insurance (62%), catering (61%) and training (55%) are still in the lead, but new demands such as gym membership (48%), entertainment platforms ( 41%), retirement plans (38%), private mobility services (32.42%) and life insurance and loans on favorable terms (26%).
“The inclination of the workforce towards more flexible and diversified regimes, with new protagonists such as physical and mental well-being, makes the traditional food / transport / medical insurance combo incomplete”, continues the boss of Cobee. “Employees want a dynamic plan that adapts to unpredictable times and situations and, above all, to their new peculiarities.”
Financial well-being is another rising trend, especially for the elderly. The reform of retirement plans, which changes taxation in favor of company plans over individual plans, makes 63% interested in this benefit, being willing to allocate 200 euros per month if their company doubles this amount thanks to a plan shared inputs.
Flexibility, personalization and communication
Despite the fact that 52% of workers consulted believe in the effectiveness of benefit plans, eight in ten (81%) consider them general and impersonal. Knowing the needs of the models and coming up with personalized plans is essential for success.
There is also still a certain lack of knowledge or communication between the company and the workers: 75% of the people consulted do not know how much a provident scheme contributes to their salary, how to take advantage of it for their professional development or for what measure that improves their purchasing power.
As the study points out, the most rewarding compensation systems are those designed on flexible and innovative regimes, both in management and in the provision of goods and services. In addition, they must take into account generational needs and clearly communicate the added value.
During childbirth, six in ten workers were unable to take advantage of the goods or services offered by their plans. Restaurant vouchers that can only be spent on site, transport cards with monthly expiration, or medical coverage without online services were of little use.
The report shows that companies are overcoming this rigidity. Almost half (47%) have implemented or started evaluating comprehensive, 100% digital and flexible systems that allow rapid assimilation of previously rare exceptions such as telecommuting or reconciliation.
For their part, increasingly technologically advanced employees demand a complete platform with their own user experience to access their compensation plans, including a mobile app to manage the benefits package when and where they want. It is a digital transformation closely linked to technological change, but also cultural. “A new corporate culture is developing in which the worker and his happiness are placed at the center of the process to guarantee the well-being of the whole company; communication, empathy and the ability to listen and take charge of the employee are the keys to the true digital revolution ”, underlines the CEO and co-founder.
“It’s not about reproducing the same plan year after year, but using the elements of non-salary compensation as a differential value. Although there is still a long way to go before the complete renewal of pension plans, a very competitive labor market and a huge changing social landscape are already revolutionizing the remuneration systems in multiple companies ”, concludes Aranguren.
Click here to download the second annual Cobee Profit Trends report