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Compensation and Benefits

When talking about compensation and benefits in the human resources sector, reference is being made to all the rewards the employee receives for their work . These rewards can be of very different types and, in most cases, they will be financial compensation (salary) or benefits in spices. In addition, other elements could also be included as certain advantages in the workplace, such as flexibility of schedules or facilities when obtaining vacations, among many others.

What is meant by compensation and benefits

Compensation and benefits are understood as all that the employee receives in exchange for his work. That is, any form of payment you receive, as well as the favorable conditions that you find in your job and also impact as a form of benefit for the worker himself.

The compensation and benefits that an employee obtains for their work is what guarantees that the employee performs the function assigned to him correctly and satisfactorily for the company. This is very important, since an employee who is satisfied with the compensation and benefits he obtains for his work will be a worker who carries out his work with dedication and commitment to the company, which will have a positive impact on it. That is, a worker who is satisfied with the compensation and benefits that he obtains from his job will be a worker that the company can amortize, since the resources that the company dedicates to the worker's compensation and benefits will be returned in the form of Benefits for the company itself.

What types of compensation and benefits are there?

The variety of types of compensation and benefits that can be found is quite varied. However, most of them can be grouped into three main categories:

  • Compensation and benefits of an economic nature : This is the most important and most easily compensated form of compensation. it's characterized as compensation that the employee receives for their work in the form of money, such as salary, bonuses, extra payments, or even availability of options such as Ticket Restaurant , Ticket Gasolina or Ticket Nursery , among others.
  • Compensation and benefits in spices : This is another form of compensation that is also part of the rewards that the employee receives for his work but that is characterized by taking much more general forms than money. In this sense, you can try to access the product or service produced by the company where you work, access to medical insurance, company vehicle availability, access to a private pension plan, etc.
  • Compensation and strategic benefits : They are another form of compensation that is usually linked to the workplace, although it may also not be. These are certain advantages that the worker has for the simple fact of being in a certain company. For example, tailored solutions designed for employees and freelancers. it's what is known as Flexible Remuneration, in which part of the employee's salary becomes tickets that are tax free. In this way, you can save by using the Transport Ticket or the Gift Ticket .
  • Compensation and benefits: key aspects

As you can see, the compensation and benefits that a worker obtains in a company go far beyond the mere salary, which would be the main compensation but not the only one . Thanks to this type of action, it's possible to improve the perception of the company by the employee and, consequently, improve their work rates and the fidelity they feel for the company.

Although different important elements can be mentioned that must be taken into account when establishing the types of compensation and benefits for employees, current trends are developing from the following key aspects:

  • Total reward philosophy : This is a perception of compensation and benefits as a unified whole that goes beyond economic compensation. In this sense, it breaks with the tradition that compensations in spices or strategic type are complementary to those of economic type. From the philosophy of total reward tends to unify all the compensations and the benefits in one, without giving priority to the economic aspect over neither of the other two.
  • Use of new technology : New technologies are present in all aspects of contemporary life. Thanks to its applications, you can offer better benefits that better the employee's experience in relation to the perception he has of the compensation and benefits he receives for his work.
  • Active talent management : Finally, another key aspect that determines that the compensation and benefits that a worker receives are correct is through active monitoring of the situation of the company and the perception that the workers themselves have of She and her own situation. In this way, active strategies aimed at improving employee engagement with the company can be implemented, carrying them out on an ongoing basis and training the human resources department with the tools necessary to detect any deficiency from the most initial stages of the same. .

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