Social benefits, also known as flexible remuneration, They are an excellent tool for all companies that want to offer improvements to their employees, but due to various circumstances, they do not have the necessary budget to carry out salary increases. And it is this system that makes it possible to improve economic rewards without having to increase the budget item for them. And yes, it may sound impossible, but it is actually true and within the reach of all companies.

To understand this, we need to consider the role of social benefits in relation to the gross wages of workers. As you well know, deductions are made on the stated gross amount which, when applied, results in net pay. And, of course, these deductions correspond directly to the gross. In other words, the grosser, the more withholding, and of course it works the other way around, so if we lower the gross, the worker will have a lower deduction. What sounds really good? You can find a lot more information about this in this 100% free Cobee ebook on starting a welfare program.

To understand a bit about the welfare formula, the key is that their amount is deducted from the gross salary, so that with effective application of their respective withholding taxes… these will be lower. So the key is that the benefits that the worker chooses are products and/or services that they would still use even if they weren’t included in the flexible pay plan. So we change the order of the sequence:

Gross salary —> deductions —> net salary —> purchase of products and services

on

Gross salary —> purchase of goods and services (social benefits) —> deductions —> net salary

And looking at what has already been seen, it seems that we are talking about a more favorable formula for the worker, everything gets even better when we consider another key point, which is that social benefit plans usually offer products and services that fulfill them at prices below the market price. In other words, savings for workers are maximized because, in addition to using flexible pay to reduce withholding taxes from their paychecks, they will be able to get the products and services they need at lower prices than they would have paid under the traditional formula.

So, as you can see, the introduction of a social benefits plan in any company, regardless of its size, is a perfect tool to improve the conditions of workers and thereby build their loyalty and make them feel more comfortable and happy to be a part of it. Of course, you have to consider more aspects to get it right, and the best helper to take the first steps is none other than this e-book 100% free by Cobee to answer all your questions.