Inflation is rising, real wages are falling. Here, too, employee benefits are an effective solution

14. 9. 2022News

Even though 7 out of 10 workers today are already cutting back where they can, inflation is eroding their purchasing power at a record pace. However, it is unrealistic for 99% of companies to match real wages by increasing them. That is why benefits are an elegant solution that is advantageous for the company and its employees. In addition to being essentially a pay rise for your employees, they are tax deductible from your corporate income taxes, saving your company money.

What are the four most popular benefits today?

After pay rises, employee benefits are the second most common request that company directors currently receive. The value here is also psychological. Send a clear signal to employees that you care about their situation and that you are addressing it as best as possible. They will certainly be aware of this kind of pay rise and will often use it for their relaxation or pleasure.

We have selected the most requested benefits for you based on the current demand from employees themselves:

• A catering allowance is one of the most popular benefits. Currently, 36% of employees would welcome its introduction or increase. In addition to financial support, regular meals also have other benefits: They improve overall fitness, prevent obesity and reduce the occurrence of everything from seasonal to chronic health problems.
• This year, holiday allowance took second place and is an area in which 31% of workers are planning to cut back their spending significantly. The result can be a loss of motivation, due to the fact that many of them may not have the funds left over for their annual holiday. Therefore, we believe that even this benefit will be at least a twice-fold return to the company.
• A third area where you can greatly help employees with benefits is in leisure activities. Here, too, a large portion of them plan to cut back. It’s about sporting activities (whose positive effects on health and psyche come in handy in challenging times), as well as support for mental health. This takes many forms: consultation with a psychologist, courses in stress management techniques, “mental strength training”, etc.
• A transport allowance is also very popular today. With the current prices of fuel and train tickets it makes perfect sense.

Whether you are considering a catering allowance or other allowance in the form of benefits, get in touch with us – we will be happy to prepare a savings calculation for you and advise you on how to make it as beneficial as possible.