Money alone is not always everything. These alternatives to salary increases can pay off for employees.
When it comes to the job, salary plays a particularly important role for many employees. After all, you want to live well and be able to treat yourself to something. However, when it comes to negotiating a higher salary, employers often object – and refuse to increase the salary. Fortunately, there are now a number of alternatives to increasing employee pay that can make it acceptable to supervisors. These features often present a huge advantage and really pay off in the end.
There are a number of options for this: a work computer, the company’s pension system or subsidies for kindergarten costs and the like. In this way, your expenses can be easily mitigated and at the end of the month – in spite of paying the salary – more money is left. The biggest advantage of fringe benefits rather than a salary increase: These are mostly tax-free!
But what alternative benefits of a salary increase are really worth it to employees and what options are there at all. You can get an overview of this here.
What are the advantages of alternatives to a salary increase?
If you agree to an alternative for a higher salary, this provides advantages – often even for both sides. As an employee, you can reduce your expenses with such additional benefits to your salary and have more money left over, but employers also have benefits in this form of employee bonus. In a salary negotiation, you should definitely know this and be able to list them in order to score points.
Employee benefits include the following aspects:
- Higher motivation of employees by meeting individual needs (eg through the possibility of working from home or through childcare allowances)
- Employees often identify more strongly with the company
- More money left
The following points are examples of benefits for employers:
- Tax deduction for additional services
- The employees are closely related to the company
- Additional salary benefits can enhance your attractiveness as an employer
Alternatives to salary increases are particularly popular
In addition to the classic salary increase, there are now a number of possibilities and options that employees and employers can use and agree on. Single points are especially popular and are also profitable. These include, for example, these additional services:
Company pension plan
In order to have old-age and early retirement insurance, the company pension system is an option for many employees. Many companies already offer one and thus actively help in taking measures for time after working life. Employers often pay a part of this, and therefore guarantee greater attractiveness compared to the provision of private aging services.
Employers usually care a lot about their employees being healthy and productive. More and more employers are now actively working to improve and maintain the health of their employees. For example, through free massages during breaks, through our doctors in the company or through financial subsidies for a fitness studio. There are also indoor sports courses for all employees.
The advantage that employees have is obvious: they can often save on fitness studio costs and the like while staying fit and healthy.
Four days a week or reduced hours
Work less and get the same money? This appears attractive to a growing number of employees and often provides more incentive. This is an aspect that employers can take advantage of.
So far, employers rarely come up with such models, but in general this working time model is on the rise – at least as much as many people demand such flexibility from employers.
Lunch allowance in the canteen
In many companies, there are already fruits available to employees, and there is free coffee and other drinks or the like. But this principle can go further. For example, companies can also support their employees with subsidies for canteen or cooperating restaurants in the area.
This way, employees have the opportunity to spend less money on their own meals and more salary is left indirectly.
Reward for child care
Compatibility between work and family is becoming increasingly important in many areas. Employers also have the opportunity to contribute to the costs of kindergarten, babysitter or after-school care, in this way reducing the burden on employees. Such subsidies are tax free and thus worthwhile for both sides.
Other benefits for employees
In addition to the fringe benefits offered to employees, there are other potential benefits. In Google USA, for example, there is a spa for employees – with health treatments, massages and the like. Other employers may use animals in the workplace, which can help calm and relax employees.
In principle, other services can also be provided by employers, provided that they provide a benefit to employees. A subsidy for a new bike, for example, or a share of the costs of additional education and training – in salary discussions, you should take these aspects into account as an employee and use them for yourself.