How To Increase Effective Salaries With No Additional Cost?

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In this age of cut-throat competition, offering a salary hike proves as a big headache and an additional burden on the finance department for the top management. However, they are managers and able to handle the situation with the help of their excellent managerial skills. Hence for them, it is not a tough question as to how to increase the effective salaries of the employees. They want some options where they don’t have to pay in cash, and yet the employee gets financial benefits as well as feeling of getting something extra.

The question here is about the effective salaries, and hence they consider the amount which the employee gets to saved and not received as a part of his yearly or monthly package.  For the employees, it is necessary to see that they get better benefits from the job and organization for which they work. On the other side, the companies which have employees are worried about paying the increment in salaries as this action can have added burden on the balance sheet.

However, in the case of the employees, the need for an increase is essential, and the companies cannot ignore the same. Then what is the option which can prove helpful to the companies as well as the employees on how to increase effective salaries which can help the companies not to bear any additional expenses and on the other side it can help the employees to get the desired benefits?

The best option explained

In this scenario of how to increase effective salaries, there is only one option that can keep both parties happy. There are many companies that love to tie-up with the companies and want to target them for their products. In that case, they can offer various services and products to have them at easy rates. The companies which provide such products and services can have the benefit of getting more customers while the companies which allow these companies to tap their employees can add to the effective salaries of the employees without having any additional burden on its account.

The employees of such companies can have a better feeling of being cared for and avail of some more facilities as they are the employees of the concerned company. Hence this option of other products can prove viable for the companies seeking more client base, companies who want to avail additional benefits for their employees, and employees who wish to have a better and effective salary.

How does this option work?

In different fields, different brands go for advertising their products, which proves as an additional cost to them. If such brands can have a tie-up with various companies that have a large number of employees, they can be readily available customers. The companies can offer a discount on some branded products and services such as coupons for hotels, resorts, and other places, discount on the insurance premium, discount on branded apparels, discount or cashback on fuel expenses, discount on particular gadgets only as they are employees of a specific company. Hence the employees can have the same products at lower rates, which can help them save additional amounts.

Although the employer companies may not have given the hike in the form of raise in salary, still they can save a good amount, which is considered an increase in effective salaries. Hence as per the experts, this is the best way for the company to motivate the employees. For the companies, it has been a big question as to how to increase effective salaries with no additional cost on its account, and this option has proven as the most viable one.

Is it an effective option?

As per the experts, any option which can lead to increased motivation to employees without any additional cost to the company can be a better option. In many cases, the companies also do not hesitate to make some expenses to motivate the employees. To have the faith and loyalty of the employees and keep them motivated to work as per their best, the administration must take initiatives that can help the companies to achieve this goal. Hence the tie-up with such companies or brands which want to tap the employees of the company for a specific product can prove much useful.

These options can be availed in the form of some vouchers, coupons, cashback, or direct benefit of a discount. For example, if an employee spends 4000 on insurance, 4000 on fuel, 3000 on food in hotels, and 1000 on entertainment if he is with the package of 30000. This costs him 25% of his monthly earning.

Now, if he gets a 10% discount on insurance, 3% cashback on fuel, 50% of on hotels, and coupons of 500 for entertainment, his monthly savings will be a lot. In insurance, he will save 400 fuel; he will get 120 cashback; on hotels, he will save 1500 and 500 on entertainment. This makes him save 2520, which is more than 20% of his total expenses on all this. This saving is due to its association with a particular organization only. Hence he can have an effective salary increased although he is not paid the same by the company or his employer.

The benefits you need to know about

With the help of this option, how to increase effective salaries, there are ample benefits associated. It gives the employees a sense of loyalty and proud to work for the concerned organization. It helps them to stand out as different from millions of customers of the concerned companies. It also proves useful to the employees to save the right amount and that too without paying any tax on the same.

On the other hand, for the companies which offer such facilities to their employees, it can prove as the best option to provide additional motivation to the employees. The companies which seek the answer to the question as to how to increase the effective salaries of the employees, this can be the best option. It has to do nothing but the tie-up with a concerned service provider or seller. Hence at almost no cost, it can enjoy the benefits of winning the employees’ minds.

For the companies or brands that offer such services or products, it can be an excellent option to get more clients in a single go and that too, with limited efforts. The most important benefit they can have is to tap this audience; they do not need to bear any additional cost except the tie-up with the concerned companies. They can have loyal and long term customers with a little cost of coupons or cashback as well as discounts. Hence one can say that such a scheme can prove as the best option for all the parties involved in the deal.

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HR Connect In house Author

HR Connect In house Author

Our inhouse authors have expertise in several areas of HR and Payroll. Their content contributions have been published in leading blogs, websites and print publications.
HR Connect In house Author

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