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The reduction in purchasing power is having, among other consequences, a generalized lack of motivation and almost half of Spaniards claim to feel underpaid by their company, as extracted from the V Report on Trends in Profits carried out by Cobee.
Madrid, January 31, 2024.- The constant rise in prices continues to be one of the biggest concerns for Spanish society as a whole. According to the INE, in 2023 average inflation reached 3.5%, compared to 8.4% in 2022. Although the figure is almost 3 times lower than that registered a year before, the accumulation of increases in life prices has led millions of people to lose purchasing power.
Added to this situation is the freezing of salaries suffered by the majority of workers in Spain, which has meant even more noticeable wear and tear for the workforce. In fact, 61% of workers in Spain affirm that, if they could change something about their current job, it would be to improve their salary to compensate for inflation, -a figure that increases two points compared to the previous year-, as stated in the V edition of the Employee Benefits Trend Report carried out by Cobee, the Spanish startup that revolutionizes benefits management, in which the opinion of more than 1,600 people from different sectors is analyzed. Added to this is that almost half of Spaniards claim to feel poorly paid by their company (47%).
All this has caused many to consider a change in the workplace. The report points out that 1 in 3 Spaniards confess to having thought about leaving their company in the last 6 months. In the case of young people between 25 and 35 years old, the figure rises to 41%.
It is not surprising that workers demand that companies become aware of this and adapt to the new reality of society, offering new formulas to achieve it. The staff not only ask for a salary increase to regain purchasing power, they also demand other issues that would make them feel more comfortable and motivated at work.
Work demotivation grows by 12% in Spain
Flexibility, conciliation and employee benefit plans have become essential tools to attract and retain talent in companies, thus avoiding demotivation. Precisely, this point is being one of the most concerning to human resources departments, and to companies in general. Thus, 1 in every 3 workers in Spain feels little motivated in their company, which represents a growth in discontent of 12% compared to 2023.
The challenge that Spaniards are facing due to the loss of purchasing power is also noticeable in daily consumption. Precisely, 8 out of 10 Spaniards claim to have changed their consumption habits this last year.
Such is the situation that 22% of Spaniards say they cannot save even one euro a month, and 44% manage to reserve less than 20% of their salary for this goal.
This scenario poses a challenge for companies and their ability to attract and retain talent. Facing the tough struggle between demotivation and difficulties in raising salaries has become a challenge in the labor landscape in Spain. This lack of motivation driven by issues such as those described above directly influences their productivity and commitment, crucial aspects for the success and sustainability of companies.
Despite this, tools such as employee benefit plans have been positioned as a much smarter way to give back, allowing companies to personalize the salary payment experience differently than monthly payroll. However, less than a third of companies are committed to offering this type of plan for their workforce.
Regarding the formula of the plans, the most common continues to be flexible remuneration (41%) – products and services paid from your payroll with tax advantages -, followed by social benefits (21%) – products and services paid directly by your employer. company- or a combination of both (16%). Even so, 22% of workers who have a benefits plan do not really know what it is or how it works.
Two out of three people still don’t really know how flexible remuneration works
On the other hand, there is still a high degree of ignorance on the part of the staff, who do not know how to correctly interpret their payrolls. In fact, 2 out of 3 people still do not really know how flexible remuneration works and what its advantages are, something that has a direct impact when it comes to assimilating the savings they can obtain month after month by making use of its benefits.
For this reason, it is important that both staff and companies know the tax advantages that benefit plans and flexible remuneration provide for both. In the case of companies, they can obtain an ROI of up to 20 times the investment made in these plans if the use of the plans is fully effective among the teams. For their part, teams can obtain salary increases of up to 15% by using their benefits due to the tax advantages they have.
The trend regarding the inclusion of certain benefits in the plans follows the same line year after year. Health insurance is once again the most common (52%), followed by training (44%) and restaurant tickets (38%). On the other hand, the least common are gym memberships (10%), renting (8%) and retirement insurance (6%).
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Contact name: Cobee
Contact description: Cobee
Contact telephone number: 916611737
