Emotional Salary

In modern times, competing for the best employees with the highest salaries is not the only (nor the best) alternative. Employees’ loyalty is related to their satisfaction and motivation.

Attracting the best employees and keeping them motivated is no longer achieved, simply, by raising their salaries. New generations no longer consider that quality of life is the “capacity of consumption” and, in response, a new strategy called “emotional salary” emerges. This aims at addressing different personal, family and professional needs that are not only satisfied by salary increase.

Emotional salary is everything the employee receives independently of his or her salary. Though unnamed, it has always existed. This remunerative strategy is convenient because salary is a short-term motivator –more when one is in an uncertain context where increases are quickly ineffective. Emotional salary, instead, is not monetized: it is strongly tied to peoples’ emotions and the closeness they feel to the company. For example, SMEs apply personalized Coaching instead of “predefined” trainings. Or, trainings are designed according to their audience. There is follow up and a mentor to guide old and young employees, and the mentor’s role given to employees who’ve worked longer at the company, are part of the emotional salary. The idea is to think about those who will receive the training, and knowing their behavior styles beforehand allows a more effective experience.

Another interesting option is the possibility the person has to apply to different programs related, for example, to talent, future leaders or commercial development. In these programs, all employees are invited to be trained in certain competencies and to receive coaching according to their own styles and needs.

Permanent training and development of a career plan are part of the non-monetized salary. For its implementation, it is important to consider employees’ interests, according to their personal situation or age group. Young professionals of Generation Y will want to finish their word early on Fridays in order to start their long weekends, whereas Generation X individuals will prioritize a flexible timetable that will allow them to fulfil their family duties, for example.

This doesn’t have to do with assigning large budgets; it is rather about being alert and ‘listening’ to employees’ needs and interests. It may sound paradoxical, but donating one’s work time for an NGO or social responsibility program is very valued among younger employees, while older ones appreciate the fact that they can be trained or that they participate as mentors or trainers of new employees.

The highest salary will never be equal to the value of time and a better quality of life. In companies, whatever size, this has begun to be understood. 

Most SMEs are reconsidering relationships or professionalizing procedures through programs that are more oriented to Human Resources. There is a great opportunity, provided that companies don’t think that people are only motivated by money.