The Covid-19 crisis is set to turn our economy upside down. Many companies will not recover, even if it s still a little early to estimate the precise damage to the labor market. But it s safe to assume that bankruptcies and mass redundancies will be inevitable, despite the measures announced by the government.

To deal with the aftermath, companies will have to undergo a thorough overhaul if they are to be fully effective, and make competitiveness their watchword. Competitiveness by supporting research and development, innovating processes and, above all, recruiting the right people. And by providing them with the optimum conditions to increase their productivity. Compensation is obviously going to be the focus of attention. In the context of the economic crisis, starting salaries will be lower. Bonuses are likely to be non-existent. Benefits will be reduced.

And yet, motivating employees, integrating the best talent and retaining them will be a major challenge if we are to survive and bounce back. With cash flow at half-mast, it s going to be much more complicated to make salaries attractive in order to achieve this objective.

For some years now, we ve known that employees can be motivated in ways other than salary. Many young and not-so-young graduates, for example, accept lower salaries in start-ups in exchange for greater autonomy and involvement in projects. But it s less well known that innovative compensation practices have emerged in recent years, and that they have a real impact on employee performance and commitment, without necessarily increasing payroll costs.

So here are 3 innovative compensation practices that perform very well on key HR indicators and can help you attract and retain talent.

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Pay-as-you-go

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The first innovative compensation practice to take a close look at is pay-as-you-go. In Anglo-Saxon countries, companies such as Walmart, KFC, McDonald s and Ubisoft have already successfully implemented the system.

But what is pay-as-you-go? It enables employees to access part of their salary (usually 50%) before the end of the month, depending on the number of days already worked. Thanks to an application, they can check their balance in just a few clicks and release the sum.

This ultra-flexible remuneration system appeals to employees because it gives them financial security. Unexpected health expenses? Car breakdown? A sudden desire for an impromptu weekend away? Being able to draw in advance on the amount that will actually be due to the employee means they can deal with the unexpected, without incurring agios or bank charges. And managing the unexpected, after a crisis such as the one we re currently experiencing, is likely to become an obsession for most of us! How many of us were unable to buy the printer or webcam we would have needed when the lockdown was introduced? That s why employees who benefit from pay-as-you-go directly identify it as a factor of financial well-being.

And in terms of key indicators, the benefits to the company are maximized, since pay-as-you-go attracts 30% more applicants. Turnover is also estimated to have fallen by 50%, and employee motivation is up by 69%.

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Cafeteria plans

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In Belgium, "cafeteria plans" are a formidable engagement tool for employees. They enable employees to define their own salary package, consisting of a fixed amount and variables available in the form of benefits in kind. So, without any increase in salary costs.

Additional days off, company car, savings plan, insurance - the benefits are varied and, above all, adaptable to a wide range of profiles. Tailor-made solutions appeal to employees, who can choose the benefit that suits them best, depending on their age, life situation or specific needs. What s more, the nature of this benefit can be modified each year to reflect their changing priorities.

And this is a very strong expectation on their part, since 70% of Belgian employees surveyed approve of the cafeteria plan. As such, it s a powerful vector for empowerment and commitment within the company. Implementation of the system, which initially struggled to gain ground because it was considered difficult to set up, is now facilitated by dedicated software.

In France, the tax regime for social benefits is not the same as in Belgium, and to be adapted, such an HR policy will need a helping hand from the public authorities. However, major groups are showing a keen interest in this approach, and there s no doubt that in the years to come, we ll be able to count on the legal reorganization that will enable it to establish itself serenely.

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Salaries set by employees

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The advent of peer recognition? Our closest colleagues are often the ones who know best our value and commitment at work. However, their opinion on this subject carries little weight when it comes to annual increases.

It s this realization that has led some employers to review their sacrosanct pay scale system and replace it with a salary set... by employees! While this process may frighten employers, in practice it does not lead to abuse if it is properly supervised. Management is even the first to be surprised by their employees more than reasonable demands! And with good reason: the amounts are visible to all, so it s hard to cheat...

At Smarkets, in the UK, which operates in the online betting sector, the employee has to ask for references from 5 of his or her colleagues, who will support the amount they feel is appropriate for the increase. In France, at Fasterize, an online platform that optimizes website loading, employees themselves decide on their pay rise. This is perfectly in line with the startup s vision, which promotes trust and recognition of employees work.

To emerge from the crisis and return to growth, companies will need to boost individual and collective performance. To achieve this, well-being at work and commitment will be key drivers. And since salaries are bound to suffer, it s time for companies to look at other compensation levers that have proven their worth in terms of key HR indicators.

To motivate and involve employees, greater flexibility will be essential. Perhaps by allowing employees to receive their salary when they need it, in case of unforeseen circumstances. Or perhaps by offering them benefits in kind instead of cash. Or perhaps, finally, by making them fully aware of the value they bring to the company.

In any case, there is no doubt that traditional remuneration systems will show their limits in the current crisis. And that new practices will have to emerge in companies forced to renew themselves.

Stairwage can help you set up a pay-as-you-go system in your company.