Until recently, most jobs were based only on an exchange of services for a monetary amount at the end of the month, i.e. a simple business-employee transaction. But this model has been superseded by what we know today as emotional wages.
What is emotional wage?
According to Randstad’s Employer Brand Research study, in Spain the salary is the first factor taken into account when choosing and accepting a job. But a good salary is not the only thing that motivates a person and often not the most important thing either. According to the guide The emotional salary: How to strengthen your remuneration proposal, prepared by Sodexo Beneficis i Incentius, 40% of the Spanish population would prefer to give up a salary increase in exchange for measures that do not entail a cost for the company.
But emotional pay is nothing new, far from it. In reality, the concept is very old and has always been reserved for managerial or managerial positions. What if a company vehicle, coaching sessions, access to exclusive clubs, incentives for goals, stock options…, imaginative formulas to generate satisfaction and retain talent.
What are the benefits of emotional wages?
Inspired by the big companies of Silicon Valley, today we see many companies that apply measures in this regard for the majority of their workers. From encouraging work flexibility, with extended entry and exit times, to the implementation of hybrid work with the normalization of telework, supports for professional growth, training and career plans, recreational activities to promote a healthy and healthy life (spaces for sports, fresh fruit, mindfulness workshops, psychology sessions…), the possibility of bringing pets, corporate volunteering programs, nursery services, health insurance, restaurant tickets… .and also create open and bright work spaces that stimulate creativity and a sense of belonging. In short, a non-monetary way to demonstrate that workers are the main and true value of the company.
Different studies confirm that the emotional salary has a positive impact on the levels of productivity and efficiency, due precisely to the influence that the initiative and commitment of the workers have on the fulfillment of the organizational objectives. This is supported by Gallup’s State of the Global Workplace study: greater employee engagement results in a 21% increase in profitability and a 17% increase in company productivity.
What are the challenges of emotional wages?
However, many of these initiatives often ignore a key element for well-being at work: a good working environment. This is not achieved by setting up a ping-pong table or with a tray full of seasonal fruit. This often involves changing the management style and promoting an internal culture of recognition for a job well done. Promote a work environment free of toxicity, where there is two-way communication, autonomy and active listening.
In fact, it is only the combination of different factors that cultivates and strengthens the commitment and sense of belonging of the human capital. A healthy work environment, emotional incentives and, of course, remuneration that the person considers appropriate. If the salary is totally insufficient, what’s the point of having a gym in the company or a bar free of Nespresso capsules?
We all function in the same way: we need to have our most basic needs met in order to move to a higher level of priorities. And here I throw out a question: what are the main motivations of people when looking for work? The theory of the American psychologist Maslow is one of the most innovative techniques in the workplace, and especially since essential factors such as conciliation and mental health, or relatively new phenomena such as The Great Renunciation (the workers who no longer complain, they simply leave) and burnout (or professional exhaustion syndrome). In a few words, the big challenge for companies is to make the working conditions and atmosphere worth it.
conclusion
Is a good salary everything? Do you prefer a high salary to the detriment of emotional compensations? Would you give up part of your salary for a four-day workday? All answers, whatever they are, are perfectly legitimate and respectable. However, one thing is indisputable everywhere and for everyone: the emotional wage becomes irrelevant when the worker does not achieve a level of monetary income sufficient to satisfy his needs. Let’s start here.