In ads about open vacancies, along with information about wages, one can increasingly see the postscript: “plus social package”. Recently, the social package has become an integral part of the image of employers, with whom it is prestigious to cooperate. However, the content of the package in different companies may be different, and sometimes it is mentioned only “for show” ...
Everything but wages
A social or, as it is also called, a compensation package is a remuneration for work that an employee of a company receives in addition to salary. The cost of a social package can be from a third to a half of the amount of earnings. At the same time, each company offers its own list of compensations: some are limited to the implementation of the provisions of labor legislation, paying sick leave and vacations to employees; others - include in the package free meals, medical insurance, transportation costs, vouchers to the resort, classes in sports clubs; still others provide a car, soft loans, apartments, etc. for use.
For young employees with little experience, low salaries are sometimes compensated by the possibility of internships and additional training. In principle, the social package may include all kinds of compensation for the costs of supporting the life of an employee, expressed in the form of non-cash payment for goods and services or various discounts and benefits.
Why is this type of remuneration so actively practiced by many employers?
Currently, there is an acute shortage of highly qualified personnel in the labor market. It is very difficult to find the right specialist, but it is even more difficult to keep him in a competitive environment. Therefore, in addition to an appropriate salary, it is necessary to offer him something that will attract him to the company for a long time.
In addition, in order to achieve a stable position for the company, the employer cannot increase wages indefinitely, and the social package can be expanded and filled with new content, stimulating an increase in labor productivity and optimizing personnel management costs.
Thus, the social package serves as an additional lever of administrative influence on employees.
If an employee is not satisfied with compensation, then he can either leave the company, or deliberately reduce his productivity, or come into conflict with management. All this has a detrimental effect on the activities of the company as a whole. Therefore, compensation is needed primarily by the company itself in order to motivate the efficient work of employees.
Back in USSR
No wonder they say that everything new is well-forgotten old: even in the days of the Soviet Union, all citizens actively used compensation packages. Employees of enterprises, institutions, organizations had the opportunity to dine free of charge or at reduced prices in canteens, their children rested in pioneer camps and attended departmental kindergartens. It was possible to spend a vacation with the family in a sanatorium, to engage in sports sections. Businesses built housing for their employees. Alas, with the collapse of the USSR, almost all the accumulated experience in the field of social guarantees was decisively discarded.
A few years later, already in the new, independent states, including Ukraine, they began to return to the practice of providing workers with compensation packages. It turned out that this method of organizing stable and productive work is widely used by entrepreneurs in Western countries. It was they who, creating enterprises in Ukraine, began to introduce their principles of relations with employees here: high wages in foreign companies, as a rule, are combined with an attractive social package.
In countries with market relations, employers' labor costs are broader than workers' compensation. The cost structure is approved by the International Labor Organization (ILO). It includes ten groups of indicators:
2) payment for unworked time;
3) one-time bonuses and incentives;
4) expenses for food, fuel and other benefits in kind;
5) expenses for providing employees with housing;
6) expenses for social protection;
7) expenses for vocational training;
8) expenses for cultural and community services;
9) costs not included in the previously given classification groups;
10) taxes related to labor costs.
Based on these indicators, the average cost per unit of time worked or paid is calculated, which is taken into account by state bodies when granting tax benefits to entrepreneurs. That is, it is beneficial for employers in the West to provide a social package.
For example, Procter & Gamble offers its employees the following compensation package:
- health insurance;
- life and disability insurance;
- free lunches;
- Cristmas presents;
- the opportunity to purchase company products at a discount.
To each according to his ability
The content of the compensation package in many companies depends on what position the employee holds. Employers approach the provision of additional benefits in a differentiated way. They can, for example, pay for tuition or give a soft loan to buy an apartment, but on the condition that the employee has actually proven professionalism and devotion to the interests of the company.
As a rule, the compensation package is wider in those departments that earn money for the company, for example, in the sales department. For top managers of the company, there is usually a separate compensation package.
The simplest way to differentiate compensatory benefits is the traditional monetary reward - various bonuses and bonuses. Such a system is widely used by both Western and domestic companies. Bonuses can be paid monthly or quarterly if the specialist has fulfilled the plan set for him. Some firms prefer to pay bonuses once a year.
There are several approaches used to determine the content of the compensation package for employees.
The first approach assumes a clear structure of benefits. The employee knows that at this step of the career ladder he is entitled to a pager and a travel card, and at the next step - a representative class car.
The second - is determined by the individual attitude. The employee turns to the management with a request for some compensation, and the employer decides for himself whether this employee is of any value to the company, whether to meet him halfway.
The third approach is just emerging in our labor market, but, according to HR experts, it is the future. Every year, each employee of the company passes the final certification and, based on its results, receives a certain number of points - depending on the success of the work. The benefits provided can be combined as you like, but within the points earned.
free cheese
Why does an employer, like Santa Claus, distribute gifts? Yes, not out of the kindness of the soul and not from striving for perfection. Everything is much more prosaic - because it is profitable!
Personnel is the main resource of the organization, and the company begins to invest in it when it needs competitive advantages, when it wants to achieve some results. The tougher the competition, the more important the employee's loyalty is for the company.
In addition, many components of the social package in one way or another compensate for the costs associated with work. A mobile phone makes it possible to contact an employee at any time of the day. A company car for a manager is not a privilege, but a production necessity.
The same can be said about trainings, corporate training - they are equally beneficial for both the specialist and the employer. By the way, employers pay for trainings and seminars in many companies, but only large companies with foreign capital can afford to pay for the fundamental education of a specialist.
Stable and strong companies work for the future. In many of them, the main part of the compensation package is an investment in their staff, and therefore in their own future. For example, health insurance, free gym memberships, referrals to advanced training are provided for a very specific purpose: every company needs competent specialists with professional knowledge and good health.
If a company offers a wide social package, this means that they are responsible for personnel management and, probably, employees have good opportunities for development and growth.
Legal aspects of the social package
Given all of the above, we conclude: the social package is just a way to attract workers. Therefore, when applying for a job, you should not focus solely on its availability. Remember, only you can take care of your interests. After all, employers pursue their goal - to get a good employee. Much can be promised. And more often than not, failure to keep promises cannot even be called a hoax.
Be carefull. Your gullibility and inattention can turn to your own detriment. Before you "rush" to the ads promising high salaries and generous social packages, try to assess the reality of these very promises.
Ask about working conditions and rewards. Find out if the existence of additional compensatory benefits is legally fixed in the collective agreement. Will an employment contract be concluded personally with you, and will it list the benefits you are entitled to. It is in your interest to clearly fix in the contract what kind of compensation package the employer undertakes to provide. In this case, the legal regulation of these issues will be in the field of labor legislation.
As the most common benefits of the compensation package, consider the following: bonuses, the provision of apartment ownership, training and the provision of a preferential loan.
Bonuses. Clearly define the conditions and procedure for granting the bonus, as well as its size. If it is impossible to specify a specific amount, it is advisable to establish the procedure for calculating the size of the bonus (for example, it may be a certain percentage of the company's profit).
If the amount of the bonus or the procedure for calculating it can be established from the employment contract, the employee has the right to go to court with a request to the employer to make the appropriate payments.
Providing ownership of an apartment. It is recommended to provide in the employment contract all the conditions for the provision of an apartment, to record the data that allow identifying the apartment with an indication of the persons living in it, then the employment contract in this part will be considered as a preliminary contract for the sale of an apartment. If the apartment is registered as the property of the employee, the employer is not entitled to demand its return.
Education. It is advisable to indicate the cost of training in the employment contract, then it will be possible to demand payment of a certain amount of money if the employer refuses to pay for training.
Providing soft loans. If the employer undertakes to provide the employee with a preferential loan, then the employment contract must specify its conditions in detail. It is necessary to determine the amount, the interest rate for use, the procedure for paying interest, the terms for repaying the loan, etc.
To draw up such an agreement, you need to be well versed in the current legislation. Therefore, before signing this important document, consult a lawyer, and then many disputes and problems can be avoided.
- Motivation, Incentives and Remuneration
Keywords:
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In a general sense, a social package for employees is a list of various benefits, guarantees and compensations aimed at social support for employees. Each organization has its own list.
Russian legislation practically does not regulate what is included in the social package. Employers themselves determine what to include in it, and what you can do without.
However, in a competitive labor market, firms have to apply a system of benefits and compensation in order to attract skilled workers. Now applicants evaluate not only the level of wages and the prestige of the position / company, but also the list of what is included in the employee's social package.
Social package - what does it include?
You can often come across the concepts of “standard social package” and “full social package”. package". What is the difference?
The usual social package includes benefits provided at the state federal level. They are mandatory and cannot be ignored by the employer. Otherwise, the labor inspectorate may be interested in them.
The standard package, which is guaranteed to everyone without exception, includes:
- paid sick leave;
- providing paid annual leave;
- granting study leave;
- granting maternity leave;
- Holiday to care for the child;
- transfers to the Pension Fund;
- payment of taxes and insurance premiums;
- providing a lunch break, etc.
The listed social guarantees are regulated by the Labor Code of the Russian Federation. Failure to provide anything from this standard list threatens the employer with administrative sanctions.
Full social. package - what does it include?
Not all employers offer additional benefits and social guarantees. However, approximately 25% of companies attract qualified personnel by offering a full benefits package. We have already found out what a social package is when applying for a job, provided by law. Now let's figure out what includes a full social. package.
Additional benefits should attract and motivate staff.
Employers often take advantage of the following:
- tuition fees at a university, advanced training courses, etc.;
- transportation of employees to and from the place of work or payment of compensation for travel;
- providing a place to stay for out-of-town employees or paying compensation for rental housing;
- the acquisition of an apartment for an employee, provided that he undertakes to work in the company for a certain number of years or the provision of a loan for the purchase of housing on favorable terms;
- meals at lunchtime at the expense of the employer;
- organization of staff leisure;
- providing subscriptions to the gym, swimming pool;
- payment for vouchers to sanatoriums or rest homes;
- additional health insurance;
- cash payments upon the occurrence of important events - marriage, the birth of a child, the death of a close relative;
- gifts for the holidays, tickets to performances or Christmas trees for the children of employees.
This is not an exhaustive list. Employers have complete freedom in the formation of the social package. It can be different for different job levels.
The list of all benefits and compensations is reflected in the collective labor agreement or other internal document.
Many people who are looking for work are attracted by vacancies with a guaranteed social package. What features are included in this concept? What can an employee who applies for professions with a full social package expect?
To study this issue in detail, you need to pay attention to the following subtleties of the relationship between the employee and the employer:
- By law, certain obligations of the employer to subordinates (specified in the Labor Code and other legal documents);
- The traditional system for Russia to provide employees with certain indulgences and assistance.
The higher the position, the more privileges
Oddly enough, the concept of "social package" does not appear in the main legal act regulating labor relations - the Labor Code. This term is not documented, but still certain provisions of the document can be considered as information that requires the attention of the employer.
It is worth dwelling on articles 164 and 165, which refer to "guarantees" and "" promised to the employee. In the Labor Complex, situations are indicated in which these preferences apply.
Guarantees designate the means, methods and ways of ensuring human rights in the sphere of social and labor relations. Compensation is considered to be payments by which an employee is reimbursed for expenses related to the fulfillment of certain tasks by a person.
Important guarantees relate to popular procedures for hiring, transferring to another position. There are preferences promised at the state level in the following cases:
- The employee is forced to go on a business trip.
- The geography of work becomes different.
- The employee is forced to perform operations of a state and social nature.
- The employee combines work and study.
- The employee must stop carrying out activities not on his own initiative.
- The man is leaving.
- Termination of the contract due to certain circumstances.
- The employer is irresponsible to his duties and does not issue in a timely manner.
legal side
Every organization has its own reward system.
The law provides for other situations in which the hiring company must fulfill certain obligations to the employee. These obligations are fulfilled at the expense of the employer.
In exceptional cases, when state and social operations are performed, compensation can be made at the expense of institutions.
The main obligations of the employer regarding compensation and guarantees are fixed in, they may be reflected in the contract. But this information often reflects the initiative of the employer, and not the letter of the law. Despite the personal initiative of the employer, the obligations fixed in the contract are binding.
The listed guarantees and compensations constitute the social package, actively promoted by employers and enticing employees. The employer is assigned the role of a responsible executor. The social package cannot be provided partially. All companies offering various forms of employment and pay schemes must comply with legal obligations.
The level of qualification of employees affects the competitiveness of enterprises. A skilled specialist is welcome in any company. They value him and try to provide such an employee with a decent salary that does not make him think about changing jobs. Programs that form social guarantees are actively working.
Many bonuses are not stipulated in the Labor Code, but such a measure of incentives is quickly becoming traditional not only for highly qualified specialists, but also for other workers in a particular industry.
If a company neglects the customer reward system, it becomes unattractive for job seekers and occupies a lower position in the labor market. Many professionals will prefer a company that cares about the lives of its employees. Bonuses and loyalty programs are the factors that speak in favor of the company.
Privileges provided by the full social package
A full social package is good conditions for employees
What compensation and employee support measures are popular in Russia and valued by employees of many companies? You can talk about such privileges:
- Free food;
- Providing employees with unlimited cellular communication;
- Providing employees with subscriptions that allow them to engage in fitness;
- Reimbursement of expenses during flights and travel during holidays;
- Ensuring the ability to visit some commercial medical institutions free of charge.
The social package for managers can be equipped with the following privileges:
- Availability of a car and a personal driver;
- from company;
- Solving the housing issue;
Mid-level employees can apply for:
- Free access to fitness centers;
- Free food;
- Gasoline payment;
- Opportunity to get an interest-free loan.
Ordinary employees can count on:
- Food;
- Fare payment;
- overalls;
- Financial compensation in certain situations.
Not all possible support measures are listed here: in many companies, the social package has been expanded with other interesting and important offers that make life easier for employees. In some firms, financial support extends to family members; in this case, the possibility of summer vacation is provided.
In addition to paying for physical activity, attendance at competitions may be offered. In some companies, fans have the opportunity to attend the football championship.
The social package is a manifestation of concern for employees!
The definition of "full social package" may include a list of compensations and privileges determined by different norms. On the one hand, the content of the social package may be determined by the information contained in acts of federal significance.
On the other hand, the features of the social package may depend on the management of a particular company seeking to recruit qualified personnel. Russian legislation is not indifferent to the fate of people entering into.
The Labor Code lists the obligations that the employer has to his subordinates. They must be performed without fail. Some companies independently initiate incentive programs and new commitments that encourage employees to perform well. Many of the obligations included in the social package make the life of employees much easier, making it more varied and richer.
Therefore, when applying for a job, it will not be superfluous to inquire about the capacity of the social package in a particular company and the number of privileges that are given to employees in a position that attracts you. After all, you may have to use them and receive support from the company financially or in another way.
But how to get an IP social package, you will learn from the thematic video:
Attracting employees with just salaries and career opportunities is now quite difficult. The companies began the struggle for qualified personnel. And among the numerous motivation systems on the part of the employer, it stands out social package. This practice in Russian organizations began to take shape relatively recently. And until now, most employers prefer not to spend additional money on staff, considering the social package as an optional element. But those firms that know how to count their money still try to attract valuable personnel with additional guarantees. Traditionally, the most complete packages are offered by large Russian and foreign companies. Here the social package is perceived as way to increase the attractiveness of the company in the labor market and win the loyalty of specialists.
All inclusive
A social package is a set of benefits or additional services that the employer pays for. There are state-guaranteed benefits that are mandatory for all institutions. This is payment for annual leave, temporary disability, benefits for young employees and women. “The social package is something additional that a company can offer in addition to the basic salary. In each company, such compensations look different, - says Natalya Usoltseva, HR manager of the Bizon-Laplandia chain of stores in Yekaterinburg. - If we talk about our company, we act in accordance with the Labor Code, that is, we pay for sick leave and vacation, we allocate funds to pension and insurance funds, and we also provide medical insurance. After all, a law for compulsory health insurance has recently been issued. ”Also, according to the law, the employer must necessarily compensate for the use of personal property for work purposes. That is, if an employee uses a personal car or cellular communication for his work activity, then he is entitled to reimbursement of expenses. What else to include in the social package depends entirely on the company itself. Other benefits may include travel, childcare, continuing education courses, product discounts, sports or housing.
Three approaches to the social package
If we generalize the experience of companies, including Yekaterinburg, then there are three approaches to the formation of a social package. The first is that a set of privileges is established depending on the merits of the employee: the higher his position and the longer the length of service, the more various benefits he enjoys. Employees of the company are assigned a certain category, which implies a certain package of benefits. In the second approach, the benefits that are included in the social package are divided into basic and additional. At the same time, basic or protective benefits are provided to all employees (health insurance, life insurance and pension payments). And additional benefits (loans for the purchase of housing, free lunches, the right to buy company products at reduced prices) can only be used by certain categories of employees, for example, top managers or employees who have worked in the company for more than five years. Another option for the formation of a social package is an independent choice by the employee of the list of benefits from the list within the established amount. For example, one would prefer paying for tuition, another would prefer additional health insurance, and a third would prefer paying for a subscription to a fitness club.
Pleasant and helpful
The presence of a social package for many employees is a guarantee of reliability and stability. Depending on what the employer offers in the social package, a potential employee can decide how comfortable he will be in this company. “Additional social benefits are very significant when choosing a place of work,” says Svetlana Galba, HR Director at Sima-Land in Yekaterinburg. - Compensation package is usually the first question when applying for a job. Applicants will find out if the benefits correspond at least to what is required under the Labor Code.” As social benefits, the employee receives certain support from the employer. And consequently, the enterprise increases labor productivity, improves the atmosphere in the team and reduces staff turnover. However, the social package is also beneficial for the company itself. By providing additional benefits and guarantees, employers often retain valuable employees without a significant increase in wages. The psychological factor is also important - the cohesion of the team, the friendly atmosphere in the company. Indeed, for employees, the manifestation of care on the part of employers is sometimes much more important than financial incentives.
Benefits or salary?
Very often, candidates are lost, choosing between an attractive social package with a lower salary and a high salary without additional benefits. The decision, as a rule, is made individually, but recently in many companies in Yekaterinburg, preference is increasingly given to the first option. Sometimes it is very difficult to independently allocate money for additional needs: to get medical insurance or buy a subscription to the gym. And all people are pleased to work in a company with a strong corporate culture and personnel policy that takes into account the interests of each employee.
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What should be included in the social package? Most Significant Factors
The second group includes the following social benefits:
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Many employers in the announcements about the squeaks of employees write about the social package that they can receive if an employment contract is drawn up with them. Although the term itself refers to the social sphere, it has nothing to do with social guarantees from the state. And at each workplace or for certain categories of citizens, these are their own, different from other conditions for providing free assistance either by the employer themselves, or a set of certain services guaranteed by the state. In the article we will talk about what the social package includes.
What is a social package for employees of organizations, which includes
And if in the distant Soviet times no one was surprised by free medicine and education, or the distribution of free vouchers to sanatoriums and rest homes, today social values have changed. And the concept has become a common bonus for providing its employees with a kind of benefits or compensation, that is, social assistance either from the employer or from government agencies.
Our working population naively confuses the term social package with social guarantees, in the latter case they are qualified by labor legislation, and guarantee all employees, for example, a normalized lunch break or sick leave payment, care for a minor family member, etc. What benefits are provided to pensioners for know old age.
Each head of an enterprise or commercial structure has the right to establish a list of assistance to his employees, because our legislation does not regulate this issue in any way, although the concept itself has long been part of our lives.
You can find out what will be provided to you by the employer under the social package from the text of the concluded labor agreement, and it only depends on how much money they can be allocated for each employee individually.
This clause of the contract significantly reduces the tax burden on the enterprise, so the controlling structures may oblige the management to list full information about possible assistance in each individual employment contract. He will tell about benefits for working pensioners.
On the video - what the social package includes:
What is included in the employee benefits package
A social package is an effective incentive for an employee to improve his performance, because if, for example, he has implemented an innovative solution that significantly increases the productivity of products, then such an employee will not only be provided with typical benefits and payment for various services at the expense of the employer, but can be given a prestigious trip to resort, or send on a trip abroad. He will tell you about insurance premiums for compulsory medical insurance.
Or if the management is important about the health of employees, then it can pay for subscriptions, for example, to a swimming pool or a gym. Although everything here is strictly individual, and absolutely everyone may not need the same free services. For what you can get a tax deduction will tell.
The full social package may include, although this is not a direct obligation of the employer:
- Paying staff lunches.
- Registration of medical insurance.
- Pension contributions for insurance at the expense of the employer.
- Separate payments in case of disability at the enterprise or additional payment to women going on maternity leave.
- Free provision of vehicles for travel to work, for example, from the nearest metro, or partial reimbursement of the cost of travel tickets.
- Free provision of children's Christmas gifts or tickets to Christmas trees.
- Allocation of funds to pay for sanatorium vouchers, to children's health camps or boarding houses.
- Partial or full payment for the maintenance of children in preschool institutions, including.
- Free housing for some of its employees.
- Providing interest-free loans, for example, for the purchase of residential real estate.
- Acquisition at the expense of the company of subscriptions to sports sections, gyms, swimming pools, etc.
- Organization of free refresher courses, seminars, trainings.
The employer has the right to provide his employee with any benefits if he has available funds for these purposes.
Partial package benefits that are commonly available to temporary employees may include:
- Free lunches.
- Partial reimbursement of the cost of travel tickets.
- Getting uniforms.
- In case of emergency, receiving funds from the employer's fund, for example, for the funeral of a loved one.
And again, all of them can only be established by the company's management, there are simply no legal requirements for the mandatory provision of certain guarantees. Read about article 219 of the Tax Code of the Russian Federation on social tax deductions.
Social package for old age pensioners
Since people of retirement age usually no longer work, the social package is provided to them at the expense of the state, usually it includes:
- Implementation of the possibility of obtaining free medicines prescribed by a doctor according to a prescription.
- Provision of a sanatorium-resort voucher 1 time in 2-3 years.
- Travel expenses to the place of treatment and back home.
- Payment for travel in ground and underground public transport.
This is the main list of benefits received, but some regional authorities make an additional payment to their elderly citizens, for example, for the title of a hero or for outstanding services to their small homeland, for example, if a pensioner has patented such inventions that his region or region needs.
All this is the prerogative of local authorities, and only they can decide what social security services are available to them for implementation in relation to each person of retirement age.
The composition of the full social package for the disabled
Disabled people are the most vulnerable group of the population, therefore the state provides its own social package for them, which includes the following services:
- Purchase of free medicines.
- Provision of annual sanatorium-resort vouchers to rehabilitation centers.
- Free travel tickets, unlike, for all types of urban transport, commuter rail, or payment for travel to the place of treatment and back home.
On the video - general information about benefits for people with disabilities:
Some categories of people, such as, may have benefits for paying utility bills and a landline telephone, a free call to a doctor at home in a narrow specialty, or a free appointment with a specialist at a medical center. But all this can only be provided by the local administration, and as services from the main package in other regions may not be available.
Whether the employer or the state provides you with services under the social package does not matter at all, the main thing is to know what you can count on in a given situation.