Emotional salary: What do employees value beyond pay?

31 de March, 2022

Until a few years ago, salary was the main factor that professionals took into consideration when choosing a company to work for. However, it seems clear that times have changed. Especially since the Millennial generation (people born between 1981 and 1996) began to enter the job market, it has become more noticeable that people are looking for a better work-life balance and are more demanding of the conditions companies offer them. This has led these workers to start valuing other aspects of their professional activity than just pay. It is in this context that what is known as the emotional salary arises. Don’t know what it is? Discover this concept with us.

What is emotional salary?

Emotional salary consists of a set of incentives that organizations offer their employees in order to motivate them and which go beyond the salary component. These are all the non-monetary benefits provided by companies that aim to increase employee satisfaction, guarantee well-being in the workplace and promote their involvement and sense of belonging to the organization. Basically, emotional pay is a way for companies to demonstrate that they care about their employees and their happiness.

Types of emotional salary

No two companies are the same. Each organization must look at its own reality (its culture, its values, its resources, its benefits policies) and define the most appropriate way to implement emotional pay to motivate its employees. Even so, there are some types of emotional salary that are agreed upon and that your company should consider:

• Flexible hours: the most important thing is that your employees finish their work properly and this doesn’t always have to be between 9am and 6pm. Give them some flexibility in their working hours so that they can pick up their children from school, go to the gym or so that they can take care of something in their personal lives even during working hours.
• Teleworking: the demand for teleworking during the Covid-19 pandemic has shown that employees’ presence in the office is not always essential. Whenever possible, and if they prefer to work from home for some reason, give them the opportunity to do so.
• A good working environment: people spend a large part of their day at work. Ensure that, during this time, employees feel welcome, involved in the team and satisfied with the environment around them.
• Spaces and leisure time: a good working environment can be influenced by the workplace itself and the work routine. If you have space on your company premises, think about creating a leisure area where employees can relax and socialize.
• Training: acquiring new knowledge and skills is an excellent way to keep employees motivated. Provide them with training opportunities and show them that you care about their personal and professional development.
• Flexible remuneration and social benefits: as we have already seen, compensation for employees’ work can go beyond their monthly salary. Invest in a policy of social benefits such as vouchers to support children, education or health expenses, for example, so that your employees feel recognized and appreciated.

Benefits of emotional salary for companies

Emotional salary aims to increase employee satisfaction and motivation through incentives and policies that go beyond remuneration. And when employees are more motivated and satisfied, this brings very positive results for organizations:

• Increased productivity;
• Greater ability to attract and retain talent;
• Reduced turnover;
• Reduced absenteeism from work;
• Optimization of resources;
• Improving the organizational climate.

Of course, this idea of an emotional salary is not intended to devalue the importance of a good salary component. People should be fairly rewarded for their work. However, it seems undeniable that money isn’t everything and a good salary may not be enough to attract and retain talent in your company. Are you ready to take the first steps on this path where monetary salary and emotional salary come together?