Salary benefit definition

Thesalary advantage can make all the difference when recruiting new employees, especially in a context ofinflation where purchasing power is becoming a priority. But what is it? What's in it for the company and the employee? In this article, we answer all your questions, from gift-giving to cultural or restaurant outings, to the support provided by the non-financial benefits that exist in many organizations.

‍

What is a salary advantage?

‍

Salary benefits, whatever their nature, represent a kind of salary supplement for employees and play an essential role in their commitment. Some benefits are compulsory, while others are optional. The former are required by law, mentioned in the employment contract or imposed by the collective bargaining agreement. The others are freely decided by employers, who establish a dedicated policy to propose or offer various benefits according to the company's stakes. Employers set up and cover all costs associated with employee benefits, thus guaranteeing their implementation over the long term.

‍

The main objectives of employee benefits:

‍

• Improve the quality of life of employees in their working environment;
• Boost motivation and productivity;
• Attracting and retaining new talent through an attractive benefits package;
• Benefit from tax incentives in the form of deductions or rebates.

‍

Why are salary benefits important to a company?

‍

Whatever their nature, salary benefits are especially important for employees. Firstly, they represent a significant financial boost, often exempt from social security contributions up to a certain ceiling. Secondly, by improving their quality of life in a sustainable way, these bonuses boost their satisfaction and thus their motivation. 

‍

This is where the benefits for employers come in: happy employees are more inclined to invest themselves in their work. Genuinely committed, they are more efficient and therefore more productive. 

‍

In other words, salary benefits have a direct impact on the company's productivity and performance.

‍

In France, they form an integral part of employees' remuneration, along with vouchers such as vacation vouchers, luncheon vouchers, and other aids set out in the CSE to facilitate work-life balance.

‍

In many companies, these benefits represent a competitive advantage in attracting and retaining top talent. Employers adjust the amount of benefits according to the needs and objectives of their new social policy.

‍

What are the different types of employee benefits?

‍

Salary benefits fall into several broad categories, responding to the needs and well-being of the company's candidates and employees.

‍

Benefits in kind

‍

Benefits in kind are goods or services provided by the company. They may be free or subject to a contribution. Whether direct or deducted from salary, it is always less than the actual value of the service provided. 

‍

Employee benefits are generally subject to contributions. Because they form part of remuneration, they must appear on the payslip. Finally, benefits in kind are taxable. 

‍

The most common employee benefits in kind :

• Company car ;
• Communication tools (business telephone, computer, etc.) ;
• Accommodation ;
• Meal baskets and/or luncheon vouchers ;
• Gift and/or vacation vouchers;
• Social and cultural activities ;
• Child care...

‍

Namely, company mutual insurance is a mandatory group benefit, but since 2014, the employer's contribution is no longer considered a taxable benefit in kind. It must nevertheless be included in employees' annual income.

‍

Monetary benefits

‍

Monetary benefits include commissions, bonuses, profit-sharing and benefits-in-kind convertible into cash. They provide financial flexibility, offering employees the opportunity to improve their remuneration according to their performance within the company.

‍

Examples of monetarysalary benefits:

‍

• Exceptional bonuses ;
• Company savings plans;
• Additional paid vacations...

‍

Salary benefits related to new work methods

‍

New ways of working offer advantages tailored to organizational changes. Here are the two most common options:

‍

Telecommuting Telecommuting: a benefit that includes a flat-rate Internet subscription, a workspace card, and the payment of certain costs such as electricity, enabling the employee to work off-site. It can also include flexible working hours and a choice of workplace, subject to agreement with the employer.

‍

Office tickets These allowances or credits can be used to book flexible work spaces such as coworking or hotel meeting rooms.

‍

By combining these options, companies can ensure that the quality of life of their employees takes pride of place. They comply with sustainable mobility requirements, while optimizing costs and productivity in a secure and attractive environment for talent.

‍

Is it possible to negotiate salary benefits?

‍

As you can see, salary benefits vary from company to company, and form a package that can be tailored to the employee's profile. Employees can negotiate them when they are hired, or as part of collective bargaining with their representatives.

‍

In all business sectors, negotiating salary benefits is an integral part of the recruitment process. Seeing benefits as an effective way of improving their quality of life and well-being, employees try to obtain the best possible advantages. These will have a positive impact on their daily lives, whether in the form of supplementary health care, transport allowances or additional leave.

‍

In all cases, it is the employer or the Social and Economic Committee (Comité Social et Economique - CSE) who is responsible for setting up and managing them. That's why it's so important for management to be fully conversant with current labor laws, particularly as regards working hours, allocated resources, benefits and compensation. The addition of benefits such as pension contributions or vouchers can also increase the attractiveness of the position, strengthening the commitment of talent to a common project.

‍

Salary is no longer the only priority for employees. Quality of life at work and professional well-being are today's top priorities.Salary benefits, whatever their nature, enable a company to meet its employees' new needs and stand out from its competitors. It becomes a genuine source of motivation, appreciated for its impact on day-to-day life and job satisfaction.