Manuel Monge Jiménez
Central America and the Caribbean Community Manager
Adriana Nuñez Solano
Human Resources Manager
When talking about emotional salary it can be defined as: provide employees non-economic benefits that make them feel comfortable within the company.
By “emotional salary” we understand all those remunerations which lack economic nature and that at the same time, positively motivate the employee; they are essential tools that ensure retention and attraction of talent, decrease in staff turnover and encourage commitment, quality and productivity of the employees.
The traditional concept of extensive shifts in exchange of money is in the past, and today the companies shall adapt to new trends that allow workers to balance their personal and professional life.
To do this, the companies can adopt policies that grant employees authorizations and licenses with or without pay, flexible schedules, free food and transport and/or teleworking; they can be as creative as they wish in order to stimulate a variety of training programs, free courses, voluntary activities, distraction areas, spaces for exercising, social activities, public recognition of personal merits, activities that encourage a healthy life, etc.
Types of emotional salaries:
1. Flexible hours and good working environment
Traditionally it was thought that a fixed schedule was more adequate for the organization and its workers, but over time it has been proven that there are people that are more productive in the morning and others in the afternoon. For this reason, offering flexible hours results is a motivation for workers.
2. Professional development and options for internal promotions
Provide opportunities of professional growth is a benefit that contributes to the retention of talent and which results very attractive for employees that would like internal promotions.
3. Teleworking
It is a very delicate and difficult benefit to implement in organization since not all posts can ensure its correct performance from a distance. This benefit contributes to a personal balance and can become one of the most attractive benefits that can be provided.
4. Access to recreational spaces
If alliances are set with recreational centers as gyms or department stores, discounts or low-cost rates for employees can be offered.
Similarly, indoor recreation to celebrate commemorative days, integration dynamics, etc.
5. Pleasant workspaces
A good location, access to services or parking near our job, are some of the amenities that attract us and make us stay in our job by time.
Questions about the topic:
- What is Emotional Salary?
Non-financial gains for the resources that are not part of their salary, but that generate an added value in different areas; nowadays, candidates before being part of the company evaluate the famous “Benefits” that the same provides.
- Which are the points to consider so that Emotional Salary does not turn against the employer?
It is important to establish which is the Benefit or Emotional Salary, determine the scope and possible changes that arise in time according to the company´s need, by relying on policies and procedures. For this purpose, every time we think about a benefit, we shall analyze it from each country´s legal point of view, in case we don’t want it to become an acquired right or salary in kind before a possible resignation.
- How can an Emotional Salary provided by a company be valued by its resources?
There are several ways, at market level there is an Emotional Salary Barometer which is a tool that measures satisfaction of a resource at an individual level. Internally, we can generate a survey to find out at a macro level satisfaction of resources for each Benefit or Emotional Salary, from there, we obtain feedback for the improvement of the same.
- Are the levels of turnover in a company associated to lack of Emotional Salary?
Turnover is also linked to the search of better working conditions, this is why the answer is yes, turnover is associated with lack of benefits, not being the only cause of turnover but playing an important role.
We have all heard or lived the movement of a resource from one company to the other due to its benefits and not only for its salary, as for example: a better organizational environment, flexible hours, insurance, teleworking, etc.
- Who is responsible for Emotional Salary, the company, Human Resources or the Resource?
All of them, Human Resources to develop strategies, the company to analyze and implement the ones it considers feasible and the resource of making use of such benefits.
- What can an organization do to increase Emotional Salary?
Analyze the compensation and benefits models, so there is a balance between them, study the latest market trends to analyze all the trending benefits and which can impact positively in your organizations, according to internal budgets, needs of internal satisfaction and very important listen to the feedback of internal resources.
