Total remuneration reform – more value with insurance and benefits
When talking about remuneration, the focus is often directly on salary. It remains the basis, but more and more employers are now asking: what else do we have to offer if a direct increase is not possible?
Salary increases are limited by the economic situation, collective agreements, and internal budget constraints. At the same time, there is fierce competition for skilled workers.
This situation forces us to view remuneration as a broader concept, in which employee benefits and employee insurance also increase in value.
Black-and-white pay slips are turning into color pictures
Total compensation is not just a number at the end of the month. It is the experience that the employer values, supports, and recognizes the needs of the individual. Ten years ago, benefits might have been hidden in the employee handbook or scattered across different services. Today, they are a strategic tool.
For example, employers can offer:
- Tax-efficient benefits, such as commuting benefits, voluntary pension insurance, or occupational health services, which enhance well-being without a direct salary increase.
- Voluntary additional benefits, such as technology purchases, gym memberships, or extra vacation time, which are manageable for the employer but have a high perceived value.
- Clear total compensation calculations, which, when made visible, increase commitment in the eyes of both current and future employees.
A financially sensible way to reward staff
From a financial management perspective, benefits offer an opportunity to increase the value experienced by staff without directly affecting the total wage bill.
For example, supplementary pension contributions or tax-free fringe benefits can reduce an employee's tax burden and improve their purchasing power, while keeping the employer's costs under control.
Carefully selected employee benefits not only support well-being and commitment, but can also serve as a tool for optimizing costs. In this way, rewards can be proportionate to the organization's financial situation without compromising the value experienced by employees.
Visibility, choice, and impact
Many employees do not fully understand the importance of, for example, group life insurance, accident insurance, or supplementary pension contributions.
When these are made visible, the experience of total compensation improves significantly. At the same time, an employer brand is built that stands out.
Well-designed benefits can also give employees freedom of choice without increasing the company's costs. This is precisely what makes them an attractive addition to a modern remuneration strategy.
Competition for talent is not going away
Companies that succeed in building an attractive, clearly communicated, and personalized total compensation package are strong not only in recruitment but also in employee engagement and well-being at work.
When salary budgets are tight, the impact of the total package becomes even more important. And that's when every benefit and solution that adds value without a direct pay rise is worth looking into.
Let's work together to find a functional and cost-effective solution. The best employee benefits and insurance policies are built through cooperation. HR and financial management, together with external experts, can create a solution that is cost-effective, understandable, and genuinely effective.
We know the options and possibilities, and we are happy to help build a package that serves both the employer's goals and the employee's interests – cost-effectively and clearly.
