Inflation and compensation: towards more flexible and humane models

In recent years, an undeniable reality has come to light: the sustained increase in the cost of living and inflation have a direct impact on workers' daily lives. Housing, energy, food and transport are just some of the areas where price increases are most noticeable, directly influencing our teams' perception of their remuneration.

In this context, many companies have identified that linear salary increases are insufficient and difficult to sustain. That is why they are choosing to implement compensation models in which, in addition to traditional salaries, they offer a set of additional benefits to their teams, known as Total Reward.

What does total reward involve?

The Total Reward approach is based on the premise that remuneration goes beyond salary. It includes benefits, incentives, flexibility and programmes that improve people's well-being: insurance, pension plans, transport subsidies and continuing education.

This creates a more comprehensive value proposition, in which the company not only pays its employees, but also provides support and opportunities to its teams.

In the current inflationary climate, many of these non-monetary benefits can have an impact comparable to that of a salary increase.

Personalisation, the key to commitment

One of the central aspects of the current debate on remuneration is diversity of needs. Not everyone values the same benefits equally: for some people, flexibility and free time will be more important than a financial incentive; for others, a family health plan or pension plan will make all the difference.

The total remuneration model allows the offer to be tailored to each individual or group, which seems to be increasingly relevant in such a competitive labour market, where retaining talent is a complex task.

Flexibility: a benefit that goes beyond salary

If there is one element that has emerged as a key decision in recent years, it is flexibility: teleworking, flexible hours, compressed working weeks... These measures have a direct effect on quality of life and, indirectly, can help alleviate everyday expenses.

This advantage, which is not strictly financial, can have an impact comparable to that of salary. This is because this flexibility also acts as a cultural element that helps reinforce the perception of trust, autonomy and well-being within the organisation.

The remuneration systems offered by companies are evolving towards broader models, in which salary coexists with elements of value, well-being and flexibility. In this scenario, total remuneration is a way of understanding the relationship with people, interpreting their needs and balancing economic sustainability with the perception of value. And this is where it can make a difference when it comes to attracting and retaining talent.

After all, remuneration is no longer limited to pay: it is about offering a complete experience that makes sense to the employee.