Why Should You Consider Remuneration Packages for Your Company?
It can be all too easy to overlook the importance of a strong remuneration package when you’re deciding what your employees should get for their work. The fact that it can cost extra money to do this is a big reason for many companies ignoring employee benefits packages, but this spending can be well worth it.
Not only will your employees enjoy more cash incentives for their work, but they will also know that they will be rewarded when they work especially hard. This can improve your productivity and decrease employee turnover dramatically.
Of course, though, it goes further than this, and many companies find that they are able to make big steps when they give their employees a comprehensive remuneration package. Direct compensation is always nice, but additional benefits are also a market standard.
Also, salary increases should be figured into the budget and should be given related to the duration of employment and increases in responsibilities. These salary increases don’t necessarily need to be part of the remuneration package, but if they are guaranteed and generous it wouldn’t hurt to include them.
One of these steps comes in the form of more applications for the jobs you have on offer. With most companies offering packages like this, it makes sense that it would be harder for employees to secure applications without offering them themselves.
What is the Difference Between Salary and Remuneration?
People often get salaries and remuneration packages confused with one another. These two elements of employment aren’t too different, though a comprehensive remuneration package will provide more to your team than an annual salary.
A person’s salary is the main element of their remuneration package, but there will be more to this than the money they make. These packages offer new benefits and cash incentives to employees, providing something that goes far beyond making money.
In many cases, a remuneration package will go far beyond an employee’s legal entitlements. Here is a breakdown of what a Remuneration package looks like for the MissouriCorrections office.
Interesting how that all breaks down, isn’t it? It is helpful to get an idea of how other companies break down their package. You need to watch the industry standard for your location and industry to ensure you’re meeting or exceeding expectations.
What is Included in a Remuneration Package?
Remuneration packages can include a lot of different benefits, including the annual salary that your employees receive. Employee performance will usually factor into this, but the whole thing will go beyond financial compensation.
Let’s take a look at some of the most popular elements of a competitive remuneration package to get you started.
Cash Incentives: Cash incentives are one of the most popular elements of a remuneration package. This can include commissions and bonuses, giving your employees more when they work harder. This is most common with sales teams, to ensure that they make more sales.
Company Cars: Providing your employees with a car to drive can be a great way to save them a lot of money. This sort of benefit is often offered with lower salaries, with the use of a company car being considered a form of payment.
Health Insurance: Health insurance can be crucial in countries like the US. Companies often provide this benefit as part of a competitive remuneration package, ensuring that their employees are always healthy enough for work. Employers based outside of the US may not need to worry about this specific perk.
Life Insurance: While it doesn’t benefit the policyholder, life insurance is a good way to provide for families if the breadwinner in the house passes away. This is great for businesses that want to attract young employees with families.
Career Progression: Most people don’t like the idea of starting a job that they won’t be able to progress within. This makes it very important for modern businesses to offer career development options as part of their remuneration packages. If you can ensure a clear career path that is advantageous employees are likely to stay with you for many years. Professional development is another important aspect of this.
Flexible Working Hours: Many businesses don’t need their employees to be working at set times each day. This can make it possible to include flexible working hours as part of their employee remuneration packages. This is a huge perk to employees and can help with productivity and mental health.