Flexibility when it comes to compensation – a novel concept, right?
There are many examples of flexible comp out in the market today. Tesla is making cash, not stock, the default for many employee awards. Shopify has released a flex comp calculator for employees to decide how much of their comp they’d like to take as salary and how much as equity.
In a nutshell, flexible compensation gives employees the ability to decide how they want to receive payment for their service. It gives employees a valuable choice – and that’s one more way an employer can stand out in today’s competitive labor market.
Compensation is a common thread among all workers and yet it has had the most inflexible structure, since it’s generally controlled by banks/payroll.
We’ve seen some tools developed over time that allow for employees to have a cafeteria style comp plan or misc benefits to withhold for certain expenses (HSA), but what about the biggest part of compensation … Salary? Stock? Should (and could) you determine how, when, where, why that compensation is delivered to you?
What if all companies took the Shopify approach and allowed their employees to customize their compensation plan to fit their personal needs, lifestyle, financial goals, etc?
The main challenge of traditional compensation is that it does not allow employees to build net worth or reduce debt. It takes them from paycheck to paycheck without any support or guidance on how to get into a better financial situation for the long term.
Keep is leading the charge on the flexible compensation movement – enabling employees to access capital on their own terms in exchange for loyalty and retention at their company.
Access to compensation on your own terms? It is possible – and beneficial. Flexible compensation tied to retention benefits both employees and employers. Let your compensation be a value add for your company.
Learn more about Keep’s solutions here.