Financial remuneration no longer meets all the needs of professionals. For this reason, the concept of emotional salary emerged, which more and more companies are beginning to apply.
Not long ago, net salary was the main factor that professionals took into account when choosing a company to work for. Today, they seek other benefits, non-monetary benefits that promote well-being and happiness inside and outside the organization.
Emotional Salary goes beyond salary increases, extra payments, bonuses and any other types of financial compensation, to respond to the new needs of workers. Because a happy worker is a more motivated and productive worker.
It is up to companies to estimate the value of the emotional salary to be attributed to their employees: knowing whether what they value most is a flexible schedule, help with medical expenses, social benefits in relation to their children's education, subsidies for training, equal opportunities for all or other benefits that are not included in the salary slip.
Why is emotional salary so important?
Through countless actions that positively impact employees’ emotions, companies can expect a profitable return, with employees more motivated, involved and showing better performance. But beyond that, this is a good practice for attracting talent and keeping it.
According to the labor exchange of OCCMundial, the emotional pay increase increases personal productivity by 33%, reduces the absenteeism rate by up to 50%, and decreases days lost due to inefficiency by 66%.
The entry of the Millennial generation (people born between 1981 and 1996) into the job market constitutes a challenge for companies. Millennials are the most demanding with the working conditions they seek, and prioritize the balance between professional and personal life.
However, it is also a highly valued generation from the point of view of its qualifications, experience in various areas and ability to adapt to change, decisive factors in the current job market panorama. Therefore, it is important to know how to compensate them.
What does Emotional Salary mean?
Emotional salary is a tool that allows not only attract and retain professionals who know how much they are worth and care about well-being at work, but also create more efficient and dedicated employees.
This concept speaks to the emotional needs of workers and the feelings they have in relation to their job. Simply put, these are the non-monetary benefits that an employee receives when working at a certain company. These are usually benefits linked to the work environment and the attention given by the employer.
Some examples of this type of salary may be:
Flexible hours: Asking workers to strictly adhere to the 8-hour working day no longer makes sense these days. As long as the tasks are delivered on time and carried out with quality, the worker should have some flexibility in working hours to resolve personal matters, such as attending a doctor's appointment, picking up the children from school, taking care of elderly parents or going to the gym.
Good work environment: When you spend so much time and work, it is important that the environment with colleagues and managers fosters bonds of trust, understanding and integration. Workers who feel welcomed and supported are more satisfied workers.
Leisure spaces and moments: Providing a space within the company's facilities, where employees can take a break to relax, or even develop initiatives for this purpose, also helps to create a good working environment.
Additional training and growth opportunities: Investing in employee training is a way of showing interest in their personal and professional development. In this way, more committed and qualified workers are created, but also more available to grow and progress in their career – a factor that attracts professionals in the long term. It is an investment that benefits both parties.
Flexible remuneration and social benefits: Compensating with benefits that go beyond monthly remuneration helps to meet the specific needs of workers, and allows them to save on the purchase of certain goods and services. Social benefits such as childhood and education support vouchers, health insurance, discounts with partnerships with certain brands, are a safe bet for making company employees feel recognized and appreciated.
How much does the Emotional Salary cost and how to adopt it
Most of the benefits mentioned do not involve any cost for companies. In other cases, it is a cost that can be seen as a medium and long-term investment that will bring a return. This is because it is more than clear how investing in the quality of life of everyone who is part of the organization translates into greater productivity and income.
And it's not just large corporations that can apply emotional salary policies. Applying simple actions will bring significant differences. We have listed some examples that can be easily put into practice by employers:
- Improvement in internal communication, particularly between employees and superiors
- Valuing and recognizing employees
- Objective and direct assessments
- Career progression programs
- Respect for the worker’s time and external factors
- Team building activities
- Leisure programs that include employees’ families
- Transparency in the objectives transmitted
- Activities on commemorative dates
- Bet on training
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What is the first step you will take to retain your employees beyond their net salary? In addition to emotional salary, it is important to invest in an employer branding strategy. In other words, you must project your organization's reputation to potential candidates.
Did you know that you can increase the visibility of your brand and contact candidates directly by participating in Employment Exchange Job Fairs? These events are full of opportunities for both companies and candidates.
Reach candidates faster and round out your team with qualified talent at the Exchange's Job Fairs. Reserve your place at upcoming fairs!
