The end of the crisis does not seem imminent and employees have sometimes been subjected to increased workloads and stress. To what extent can the entrepreneur reward them?
In these difficult times, it is particularly important that the entrepreneur recognizes the efforts made, but he must take into account budgetary constraints, which sometimes prevent any salary increase. There are many levers in France to activate to reward its employees, a real package of compensation elements.
Concretely, what are these levers?
Some, like the thirteenth month bonus or the holiday bonus, which grants the employee a financial boost when going on vacation, are subject to social security contributions. The government, on the other hand, announced the renewal for 2021 of the “Macron bonus”. It amounts to a maximum of 1,000 euros. Even 2,000 euros for companies that will have concluded a profit-sharing agreement by the end of the year. Exempt from social contributions and tax-free, this exceptional purchasing power bonus concerns all employees, below a certain level of salary which has not yet been defined. In 2019 and 2020, this bonus was paid to employees earning less than three times the minimum wage.
Incentive and participation bonuses are two other major levers. These premiums exempt from social contributions must both be provided for by a company agreement. The incentive allows the company to associate employees with the results of the company and therefore encourage them to perform. The bonus paid depends on the achievement of results objectives defined in the agreement. It can be distributed uniformly, or according to the remuneration of employees and / or their time in the company. All employees are entitled to it. A seniority condition can be put in place, without exceeding three months. The sums paid as profit-sharing are subject to the CSG and the CRDS as well as the social lump sum at the rate of 20%, unless the company has fewer than 250 employees. Mandatory in companies with more than 50 employees, participation makes it possible to redistribute part of the company’s profits to its employees. Companies with less than 50 employees who pay it do not have to pay the social package.
“Well-being” is mentioned more and more for the sake of recognition …
This can take the form of a coaching offer or the purchase of a digital tool, such as a tablet or a smartphone. This is a taxable benefit in kind up to 10% of the public purchase price including tax of the object. We can also cite the Gift Certificates, exempt from social security contributions and contributions up to 171.40 euros for 2021, or even more under certain conditions. Holiday vouchers can also be exempt from social contributions, under certain conditions in companies with less than 50 employees or when they are 100% financed by the Social and Economic Committee (CSE). Aid to finance personal service or childcare activities are also exempt from social security contributions and CSG-CRDS up to a limit of 1,830 euros per year and per employee. Meal vouchers also benefit from an exemption from social security contributions up to a limit of 5.55 euros per voucher.
Finally, the “sustainable mobility package”, exempt from social contributions and contributions up to 500 euros per year and per employee, is also used to reward its teams while encouraging cycling or carpooling between home and work.
How can we make this reward as effective as possible?
When it is not possible to give to everyone, it is necessary to think about a segmentation. If you target the right people from a performance measure, the decision will be accepted. The reward must then take into account the different aspirations of the different generations present in a company. The most advanced companies will offer their employees a choice between the different elements of remuneration.