The well-being of people at work should be among the focuses for having a successful company.
People Caring within companies
Forms of welfare and People Caring initiatives are finding more and more space in companies. In fact, the pandemic, the economic crisis, digitalization and new ways of working have accentuated the attention to individuals within corporate contexts. In particular, interventions aimed at promoting greater well-being are intensifying.
People Caring in companies provides various solutions to help employees manage issues related to family, health, free time and culture. In addition to the economic side, there is a tendency to take care of the physical, mental and social aspects of workers and families. Among the reasons behind this trend, there is the recognition of corporate wellbeing - that is, the set of actions and initiatives aimed at increasing the quality of life and work - as a strategic element for the success of a business.
Corporate Welfare, a new priority for successful companies
Among the levers of People Caring there are the Corporate Welfare Plans which integrate the traditional protections for the worker. There are many organizations that use them, albeit in different ways. In any case, their use is destined to increase. A data on their usefulness comes from the Italian 5th Censis-Eudaimon Report on Corporate Welfare (2022), which notes that
Implementing or strengthening a Welfare Plan is a priority for over 60% of the companies interviewed.
In a Welfare Plan, a company can include services or benefits for workers and their families. They do not receive money, which would increase salaries but also taxes. Instead, they can access solutions that increase their purchasing power and help them managing the increasingly blurred boundary between personal and professional life.
Corporate Welfare and People Caring: 9 things to know
- Targets
The main purpose is to keep the workteam together. A Welfare Plan that satisfies employees, makes them more motivated and more productive. It reinforces an effective employee experience and consequently generates greater engagement with the company. - Implementation
Most of the time, the employer can adopt a Welfare Plan voluntarily. However, in some cases it is compulsory under national employment contracts. It depends on the country where the company operates. - Tools
They are many. The main ones are: health care (reimbursements or agreements for medical examinations), family services (childcare services, children's education, or assistance to fragile family members), and supplementary pensions. Additionally, employers can convert performance bonuses into employee benefits, or offer vouchers or coupons for meals, fuel, sports and cultural activities. Finally, companies can organize some People Caring services internally: nurseries, gyms, but also flexible hours and initiatives for inclusion. - Advantages for the employee
Although the benefits are non-monetary, workers gain an economic advantage as their ability to spend and access services increases. In addition, personal serenity also increases thanks to a greater ability to cope with daily commitments (thanks, for example, to childcare services and flexible hours). Finally, workers have the perception of being recognized as "individuals" by the company. - Advantages for the company
They are both direct and indirect. Directly, the company can benefit from tax breaks (eg: tax relief and deductibility) for the implementation of welfare policies. Indirectly, an employer who proposes Welfare Plans improves the corporate climate with positive repercussions on productivity and staff turnover. - Advantages for society
The community also benefits from Corporate Welfare. Increased safeguards and support from companies reduce the economic and non-economic efforts of government and society in managing workers’ issues. - Fringe benefit
They are a category of non-monetary benefits which however appear in the paycheck. Here's how they work. The worker receives a physical benefit (a company car or meal vouchers), or the accesse to a service (a subsidized loan or a training course), and its economic value appears in the paycheck as physical compensation in addition to the salary. Below a limit established by law, this value increases the worker's income (but not taxation). - Flexible benefit
This category includes goods, services and benefits that the company makes available to employees. Again, they are non-monetary benefits, such as scholarships, travel or cinema passes, shopping vouchers. The company offers a range of them and employees choose what they prefer. - An overall look
Summing up, a company that offers additional services to employees achieves savings, economic benefits, and a better working climate. Corporate Welfare based on People Caring has repercussions on the entire organization, linking success, productivity and revenues to the quality of life of workers. Therefore, it is a winning choice for the company, which also benefits in terms of image. After all, who -employee, consumer or supplier - would not appreciate a company that takes care of people?
