Internal corporate social responsibility
The optimization of the management of Internal Corporate Social Responsibility supported by a corporate culture with innovative character and identity, currently represents a relevant differentiation and a true competitive advantage for those SMEs that decide to integrate the aforementioned into their strategies, plans and business models. internal management social policies.
Internal Corporate Social Responsibility is conceptualized as the part of Corporate Social Responsibility that manages the Human Resources of a company in a social, sustainable, ethical, humanistic and supportive way.
SMEs that wish to achieve business excellence, obtain a plus in competitiveness, productivity, profitability and, consequently, improve the income statement, must design an Internal Corporate Social Responsibility Plan, included in the Comprehensive or Global Corporate Social Responsibility Planning and, logically, incorporated in the Strategic Plan of the company.
In the planning and design of the Internal Corporate Social Responsibility Plan, the basic criteria of internal restructuring and changes in the organizational chart regarding the management of Human Resources of the SME will be set to adapt them to new psychosocial trends and labor demands. of assuming a renewal process that affects people management and, of course, in order to prepare the company to meet the needs of a new generation that provides another conception of understanding work.
The process of change in the management of Human Resources of SMEs must be approached from a bilateral dimension, impregnated with a spirit of mutual contribution between the company and the people who work in it.
The new internal human capital management policies should be aimed at guaranteeing, on the part of SMEs, a higher quality of work and family life for their workers and, proportionally, at demanding from them more commitment, loyalty and efficiency at work carried out, all of this, with the primary and fundamental objective of achieving greater competitiveness, profitability and productivity for them.
SMEs that adopt internal programs for the sustainable management of people, such as work-life balance plans, equality measures or plans, flexible hours and work policies, measures to support maternity, implementation of new ways of working. such as teleworking with technological contribution, measures to help employees' relatives and dependent people, complementary social programs, relocation plans, child support, recognition plans, suggestion systems, personalized remuneration policy with an emotional component, anonymous reporting channels, anti-stress programs, internal best practice manuals, measures not to schedule meetings later than a certain time, non-overlap of work schedules with schoolchildren, training plans,career, promotion and promotion plans, employee support programs including in the same vouchers for meals, gym and nurseries, etc., and through simple and inexpensive marketing programs and communication plans, duly structured and perfectly executed, both through Externally and internally, they know how to transmit this new Human Resources management model, in addition to enhancing certain intangible assets such as corporate image and reputation, they will connect with a new socio-labor demand made up of qualified personnel, the so-called “talent”, who will choose this humanized organizational profile as the first professional option to work.and through simple and inexpensive marketing programs and communication plans, duly structured and perfectly executed, both externally and internally, they know how to transmit this new Human Resources management model, in addition to enhancing certain intangible assets such as image and communication. corporate reputation, will connect with a new socio-labor demand made up of qualified personnel, the so-called “talent”, who will choose this humanized organizational profile as the first professional option to work.and through simple and inexpensive marketing programs and communication plans, duly structured and perfectly executed, both externally and internally, they know how to transmit this new Human Resources management model, in addition to enhancing certain intangible assets such as image and communication. corporate reputation, will connect with a new socio-labor demand made up of qualified personnel, the so-called “talent”, who will choose this humanized organizational profile as the first professional option to work.In addition to promoting certain intangible assets such as image and corporate reputation, they will connect with a new socio-labor demand made up of qualified personnel, the so-called "talent", who will choose this humanized organizational profile as the first professional option to work.In addition to promoting certain intangible assets such as image and corporate reputation, they will connect with a new socio-labor demand made up of qualified personnel, the so-called "talent", who will choose this humanized organizational profile as the first professional option to work.
The SME, by executing the aforementioned communication process, will position its brand in relation to certain values that will mark its identity and corporate culture and will project a modern and sustainable Human Resources management model, the "talent" will perceive the company as " good employer ”and this will ensure the competitiveness that guarantees having the best possible workforce in the market.
The aforementioned social brand positioning will be carried out in two directions, before the different “stakeholders” or interest groups and in relation to the employee or “internal client”, new talent will be attracted and the existing one will be retained and developed.
Likewise, the SME will have to act as a true link and connect the values it possesses and communicates with the values of "talent", this identification will help to retain, commit and align the aforementioned group of qualified professionals with the project and mission of the company.
By virtue of the foregoing and in relation to the title of this article, I will add that the remuneration model adopted by the SME will represent one of the most relevant assets to consider in relation to the planning and management of the Internal Corporate Social Responsibility policies. Of the same.
Flexible remuneration policy and remuneration model in SMEs
Based on the basic elements of remuneration to be considered in any policy designed for this purpose, that is, the level of responsibility, the performance of the person, the achievement of results and skills and, taking into account, to the same extent, other Equally important factors in remuneration such as clarity, equity and competitiveness, the adoption of a specific remuneration model responds to various variables that each organization must define based on its strategy, organizational structure, culture, corporate values, cuore business, objectives, mission, etc.
The SME, firstly, when defining its remuneration policy, has to consider the following aspects:
- What do you want or are interested in giving back in relation to two key elements; The market and added value. The way in which it will implement its remuneration management model; In order to successfully implement the remuneration policy, it is necessary to assess three important issues:
- The management tools that will be used to measure each element, that is, how each aspect of remuneration will be measured The remuneration concepts that will be used The remuneration policy management process, which must establish by whom, how and when they are produced the decisions that affect the attributions of the people, in relation to the established concepts and what will be the process of communication to each person of their remuneration and the reasons that lead to it.
The SME, considering the present, should progressively plan a remuneration policy model aimed at the individualization and personalization of remuneration, attending to each case specifically and based on talent, degree of qualification, level of commitment and, above all, the contribution of "differentiated value" that each professional provides to the company.
The market for job seekers currently offers a shortage of qualified professionals and, consequently, it is the professionals with better preparation who select the company in which they want to work and develop and it is not the company that chooses them. them, unlike past times.
Currently, there is a fundamental need on the part of SMEs to design and create new formulas and remuneration structures to adapt them to an imminent socio-labor current formed by the aforementioned qualified professionals.
Variable remuneration acquires greater prominence in the planning of remuneration packages, it is advisable to impose this form of remuneration in the design of remuneration policies of SMEs in order to make wage costs more flexible and, likewise, achieve globalization and reconciliation of objectives of the company with the objectives of the people who work in them and, in this way, achieve common and unidirectional goals.
Compensation packages must adapt to the current increasing remuneration complexity, integrating new variable rate, deferred, in-kind concepts and assimilating emotional, work and social components.
In order to satisfy the social, professional and vital demands of qualified personnel and, at the same time, demand a higher degree of work efficiency, it is essential to personalize and adapt the salary package to the maximum for each person, adapting the particularities, characteristics and remuneration concepts of the same to the specific contribution of value of the professional.
Competitive SMEs will offer innovative and global job offers and jobs with added value, that is, packages that include fixed salary, variable contribution, in kind, emotional salary, flexible working conditions adapted to the professional's life reality, quality of work and family life, educational and professional development possibilities, alternatives to be able to carry out family life outside of work, etc.
The remuneration trend, also for SMEs, revolves around the “Total Compensation Model”, with salaries linked to performance and achievement of objectives, remuneration packages tailored to the needs of professionals, integrated by innovative remuneration formulas with a marked emotional and psychological component, it is essential to implement flexible remuneration policies and effectively and fairly assess each of the people who make up the company's staff, designing a compensation plan adapted to the individual professional, it is not about paying more but to pay better.
Flexible remuneration policy plan in SMEs
To design a correct Remuneration Policy Plan in the SME, it is necessary to structure it based on several strategic concepts:
1. Productivity, competitiveness and profitability
One of the most important objectives that the SME must pursue when designing the remuneration policy is to achieve greater competitiveness and productivity, for this, as explained in previous paragraphs, it must recruit and integrate the best professionals in the market into the workforce, raise the level of demand and work efficiency with respect to them and, reciprocally, meet their demands and needs.
It is necessary to place the inflection point in the relationship of reciprocity existing between qualified professionals and the company, in giving and receiving, in demanding and being flexible, in creating an associative binomial that will become commitment, fidelity and bilateral identity, it is about marking a joint business and personal project and pursuing a common and one-way goal, without a doubt this strategy of closeness and union between human capital and the company is easier to implement in SMEs.
The concept is very simple at a theoretical level but not so easy to implement in practice; The company makes an effort to improve the lives of its professionals, making sure to convey the corporate message clearly and the employee engages in a project in which he feels a participant, it is a bilateral agreement, the professional feels that the company pampers him and cares about your well-being at all levels and it delivers its potential with the security of being protected.
The SME will be more competitive if it increases its level of productivity and this will be defined, among other factors, by the quality and efficiency of the work and in the time management of the same carried out by the professionals that make up its workforce, therefore, we can deduce that the more satisfied the worker is in his job, the higher degree of productivity and profitability will be appreciated in his job performance.
In the planning of the remuneration policy of SMEs, it is necessary to include personalized remuneration concepts, not only monetary but also emotional, the professionals who work in them will have their vital aspects covered, therefore, they will be able to concentrate their skills and competences with greater intensity at work, ignoring aspects that are assumed by the company with guarantees.
2. Emotional salary
The emotional salary is that remuneration variable composed of non-economic concepts, intended to satisfy the employee's personal, family and professional needs, in order to globally improve the quality of life of the same and their environment.
The emotional salary is associated with a personalized concept of non-economic compensation, that is, with a compensation model designed individually and tailored to the specific needs of each professional, called "salary a la carte".
In each global remuneration package offered, framed in a defined job position and once the concept of economic type, adjusted to the market, sector, type of company, experience and specific professional qualification, etc. has been determined, it is necessary to assess the professional needs and extra-work, family and personal, in short, related to the quality of life and well-being demanded by each worker in particular and, to the extent of the possibilities of each SME, individually design the aforementioned emotional salary that will encompass the aforementioned needs.
It involves, among other purposes, involving the employee in the management of the SME by devising a tailor-made contract, called “psychological or emotional contract”, that integrates each worker into the project, strategy, goals and objectives of the company.
The advantages for the SME that introduces emotional compensation in its remuneration policy will be important, a workforce that works satisfied obtains lower turnover rates, with the consequent reduction in expenses related to selection, training and administration, it will also present a level of absenteeism, anxiety, stress, burnout, depression and minor workplace harassment, as a consequence of this, employees happy with their work and personal life will give the SME a plus in productivity, competitiveness and profitability.
Emotional compensation acts as a “motivating factor” for employees and improves their opinion of the company they work for, it is not about receiving more salary but about receiving benefits that the worker understands as more valuable benefits than a raise Of salary.
Notwithstanding the foregoing, it is important to enforce the maxim regarding the non-motivation of the remuneration itself, but add that if it can cause demotivation when it is not managed correctly, the emotional remuneration can contribute to the non-demotivation of professionals, since, really, it is a means of satisfying the different needs of individuals.
Undoubtedly, the emotional salary is one of the most powerful tools for aligning human capital with the business project of the SME, also, it becomes a formula of vital and professional commitment for the employee.
Therefore, remuneration in kind is imposed, also in SMEs, more and more companies opt for income in kind to compensate employees that, in addition to not entailing a notable increase in their costs, present tax advantages for this.
The main reason that a qualified professional argues when leaving a company and his job in it is the absence of emotional salary or the little adaptation or adaptation of it to his needs, ahead of other factors, that is, the qualified professional demands emotional compensation to the company to stay in it.
The SME will adapt the non-monetary incentives to the various needs, specific and particular, of each employee, thus personalizing the emotional remuneration, among the different incentives not strictly economic of the emotional salary that an SME can offer its employees, we can cite the following:
- Work-life balance plans Equal Opportunities programs, plans or measures Personalized career plans, as far as possible Opportunities for promotion, advancement and professional development Personalized technical and management training programs, face-to-face, online, blended, etc. Development of managerial skills or abilities, Outdoor programs, etc. Coaching, mentoring, tutoring processes, etc. Language training, labor flexibility policies, working hours that do not coincide with school hours, schedules Adaptable at first and last minute, etc. Reduced working hours and part-time work Programs or measures to support maternity Assistance for children Vouchers for nurseries Telework with technological contribution and with control by the company.Support programs for dependent family members of employees. Pension plans. (Deferred remuneration) External and internal relocation measures or outplacement and implacement processes Social programs, corporate volunteering, solidarity programs, etc. Internal manuals of good labor practices and ethical codes Actions leading to not setting meetings after one hour prudent Recognition plans for efficient professionals Suggestion systems for employees Anonymous channel for complaints of malpractices or irregularities Personalized programs to alleviate work stress Reception plans for newly hired workers Transport tickets Home doctor, possibility of taking the children to the doctor at any time, health insurance, medical benefits, etc. Discounts for gym.Advice service from a professional nutritionist Yoga classes, relaxation, etc. Hairdressing service, dry cleaning, laundry, etc. Oil change service to the car, transfer service from the car to the workshop, etc. Food vouchers, restaurant tickets, etc. Measures to improve the work environment. Brainstorming sessions to generate new ideas, sessions to reflect, meetings to provide solutions, innovate, etc. Programs to promote communication in the company. Help to find housing, to find School for children, etc. Social benefits appropriate to the profile of each professional Attractive business project for the employee Possibility of working surrounded by good colleagues and bosses Modern leadership model in the companyHairdressing, dry cleaning, laundry service, etc. Oil change service to the car, transfer service from the car to the workshop, etc. Vouchers for food, restaurant tickets, etc. Measures to improve the work environment. Brainstorming sessions for generate new ideas, reflection sessions, meetings to provide solutions, innovate, etc. Communication promotion programs in the company Helps to find housing, to find a school for children, etc. Social benefits appropriate to the profile of each professional. Attractive business project for the employee Possibility of working surrounded by good colleagues and bosses Modern leadership model in the companyHairdressing, dry cleaning, laundry service, etc. Oil change service to the car, transfer service from the car to the workshop, etc. Vouchers for food, restaurant tickets, etc. Measures to improve the work environment. Brainstorming sessions for generate new ideas, reflection sessions, meetings to provide solutions, innovate, etc. Communication promotion programs in the company Helps to find housing, to find a school for children, etc. Social benefits appropriate to the profile of each professional. Attractive business project for the employee Possibility of working surrounded by good colleagues and bosses Modern leadership model in the companyrestaurant tickets, etc. Measures to improve the work environment. Brainstorming sessions to generate new ideas, sessions to reflect, meetings to provide solutions, innovate, etc. Programs to promote communication in the company. Help to find housing, to find a school for children, etc. Social benefits appropriate to the profile of each professional Attractive business project for the employee Possibility of working surrounded by good colleagues and bosses Modern leadership model in the company.restaurant tickets, etc. Measures to improve the work environment. Brainstorming sessions to generate new ideas, sessions to reflect, meetings to provide solutions, innovate, etc. Programs to promote communication in the company. Help to find housing, to find a school for children, etc. Social benefits appropriate to the profile of each professional Attractive business project for the employee Possibility of working surrounded by good colleagues and bosses Modern leadership model in the company.Social benefits appropriate to the profile of each professional Attractive business project for the employee Possibility of working surrounded by good colleagues and bosses Modern leadership model in the company.Social benefits appropriate to the profile of each professional Attractive business project for the employee Possibility of working surrounded by good colleagues and bosses Modern leadership model in the company.
Other incentives and measures aimed at improving the quality of work and personal life of professionals, provided they are consistent and in line with their real demands.
In short, the "emotional model" provides a humanistic approach to the remuneration policy, which seeks to design a custom-made job for each person, bringing the company closer to the worker who, aware of the effort made by the same to improve their quality of life, must correspond to the same extent and act with the same level of demand in their work performance.
3. Remuneration policy as a business management tool and talent attraction.
The remuneration model adopted by the SME must remain integrated into its strategy and must move in the same direction, the remuneration policy represents a tool that can be managed globally and at all levels of the organizational structure, not exclusively by the Human Resources management.
The compensation package must be in line with the company's strategic plan and linked to the business.
As stated in the preceding paragraphs, SMEs can use the remuneration policy as an instrument to attract, retain and empower talent, that is, to attract the most highly qualified professionals in the market, if they opt for the implementation of global, flexible, psychological or emotional and individualized compensation.
The remuneration policy in SMEs, in the same way, can act as a very powerful marketing and communication tool in relation to the transmission of the “Employer branding” concept to the so-called “talent” or qualified professionals, creating a special connection between them. and the company, managing, as a consequence, to configure a competitive workforce.
4. Commitment and involvement of human capital.
SMEs that acquire the strategic commitment to implement flexible remuneration policies tailored to the needs of the people who make up their workforce, in order to achieve an improvement in the quality of professional and family or personal life in them, are in possession of the right moral and ethical to demand from its workers a special motivation, an efficient, productive and quality work performance, an identification with the values and the total corporate culture, an absolute alignment with the strategy, goals and objectives of the company and a true involvement in the global project of the same.
It is not about working more but about working better, doing the same job with a positive attitude and involvement in an attractive and common project.
The worker, in addition to feeling part of a team and being aware of the investment that the company has made in improving their well-being, can work with a greater degree of concentration, since those emotional, family, professional and extra-work aspects that concerned enjoy the coverage provided by emotional retribution tailored to their needs.
It is about establishing a symbiosis between employer and employees, the SME will provide the professional with what he needs and the latter, reciprocally, must contribute as much value as possible to the company.
5. Communication policy; communicate the remuneration model.
The SME must proceed to the design of a Communication Plan to publicize its remuneration policy model at two levels, externally and internally.
A. Internal Communication
The company will communicate its remuneration policy or its remuneration model in two perfectly differentiated and absolutely defined ways; First, the compensation model will be transmitted to the workforce in a precise and global way and, later, the composition of each individualized and personalized compensation package will be communicated to the individual worker, it is important to clearly convey the various concepts it includes each compensation package and what they consist of, in addition to the value that the aforementioned remuneration items can bring to the employee.
The employee must really know how much he earns, qualitatively and quantitatively, in economic salary and emotional compensation.
It is important to take advantage of the feedback from the communication of the remuneration package to know if the personal needs of the worker are covered by the remuneration in kind.
The SME will provide value to the employee without generating too many additional costs, pursuing the goal of adopting the total compensation model.
B. External Communication
Similarly, the SME, through certain marketing tools, simple communication plans and, above all, with the help of elaborate and subtle corporate messages addressed to the different interest groups and to society in general, will transmit the flexible remuneration model adopted and the values that its implementation entails, that is, it will communicate abroad the image of a social, ethical, supportive, responsible and committed to Corporate Social Responsibility, equipped with a sustainable Human Resources management model, which cares by the people who work in it and to pay them properly.
The way of communicating the remuneration policy abroad and, alternatively and complementary, the people management model based on the concept and meaning of Internal Corporate Social Responsibility is a key factor in relation to the positioning of the brand and the empowerment of certain assets intangibles such as reputation and corporate image.
The SME, in the aforementioned communication process, will direct its messages to all interest groups and, especially, to a specific target or target audience, "talent" or qualified professionals, to the object that the company perceives as suitable and optimal for working on it, in this way, you will be able to get a competitive and top-level workforce.
Obviously, the SME, following these recommendations, will also achieve institutional prestige as a quality employer.
6. Structure of the remuneration package
The remuneration policy, in SMEs, must be planned and designed based on various variables and remuneration concepts, taking into account that each remuneration package or global compensation plan is directed, in an adapted, individualized and personalized way, to a professional profile and human with different characteristics and needs who demand a remuneration solution with its own identity, that is, it is about designing a remuneration package tailored to the needs of each professional.
The SME must adapt its remuneration model to the so-called "remuneration a la carte", starting from an emotional dimension of the same and, logically, from the starting point represented by a fixed economic part adjusted to the market.
The goal is to achieve a "Total Compensation Model" for the SME, to involve the professional in the objectives of the company beyond payroll.
What is really relevant is to optimize the remuneration strategy through the implementation of a “Flexible Remuneration System”.
The compensation plan, therefore, will be structured considering the following scheme:
Fixed Remuneration Part.
The market is in charge, naturally, of determining the fixed part of the remuneration, taking into account factors such as the type of company and sector in which it operates, category of the position, professional qualification, skills and competences, educational level, experience and value provided by the candidate, etc.
The SME must seek competitive advantages through other alternatives to the fixed salary, for example, remuneration in kind and deferred.
Variable rate remuneration.
The variable remuneration part is related to the volume of the remuneration, it is linked to the results of the company.
The variable part is associated with work for objectives, the variable rate remuneration will increase in proportion to the fixed remuneration part.
The variable part of the remuneration can be determined depending on the results and depending on the objectives achieved by the professionals who work in the company, consequently, the performance evaluation represents an effective formula to assess and estimate these objectives.
Variable remuneration is basically summarized in three rules:
- Specification of objectives to beat. Accurate measurement of results. Pact of Additional Gratuities when there are extraordinary results.
It is essential to direct the remuneration in this direction to be able to access, for example, the negotiation of bonds and their subsequent collection.
Competitive SMEs provide, by way of example, higher potential income to their sales force through variable remuneration, based on performance on the results or objectives obtained, the percentage in variable with respect to the total compensation of said group can reach 40%.
It is possible to distinguish between variable remuneration systems applied to the short term or short-term remuneration and variable remuneration systems applied to the long-term or long-term remuneration.
Among the short-term variable remuneration systems we will mention the following; Premiums, incentives, bonuses and gratuities.
As for long-term variable remuneration, it is generally applied to managers, although it can also be granted to highly specialized technicians or key personnel for the organization, the most used are stock options, stock concessions and long-term bonuses. term, although this type of remuneration is used in large companies.
The current trend of combining long-term variable remuneration aims to retain qualified professionals, in the case of managers, it seeks to act as a long-term loyalty program in order to keep them in the company for a period of time determined by mediation of various remuneration structures.
Similarly, the choice of long-term variable remuneration to remunerate managers is due to fiscal reasons and also related to long-term strategic decision-making based on the objectives of the company.
Emotional retribution
This non-monetary compensation formula is explained previously in this article.
The total remuneration package corresponding to a manager, encompassing all the different types of remuneration, could be constituted, for example, by a part of fixed remuneration, part of variable remuneration, remuneration in kind, incentives in the form of shares, incentives for work carried out abroad or other types of incentives, profit sharing, social security plans, bonus target, etc.
7. Performance evaluation by competencies and compensation.
We can define the Performance Evaluation as a meeting, prepared and planned in advance to provide it with productivity, between the employee and the direct superior in which an assessment of the objectives and results achieved and an analysis of the competencies, skills, abilities is carried out., attitudes and resources used for this purpose.
The Performance Evaluation is used as a tool to evaluate the development of the professional during the year, since they are usually carried out at the end of the last quarter.
The professional, in these sessions, in addition to exposing their achievements and being evaluated regarding the performance carried out, takes the opportunity to express their demands, needs, concerns and concerns in relation to their work, particularly, and in relation to the company, at a general level.
The methodology of the meeting is characterized, fundamentally and apart from other complementary tools such as “questionnaires”, by a dialogue or communication process between the employee and the boss, during the same, a review of the exercise is carried out, and the achievements are analyzed Achieved and planning the objectives of the following year, the potential of the employee, the training aspects that are necessary for their development, career plan, promotion, promotion possibilities, directive skills and management skills, gaps, strengths, strong points are also assessed and weak in relation to job performance, etc.
Likewise, regarding the remuneration aspect, the Performance Evaluation also serves to adjust the remuneration package to the specific needs of the professional.
The conclusion of the performance evaluation in terms of remuneration is to determine the employee's compensation for the demonstrated performance, it is the so-called “Performance Reward”, the reward can be set in terms of financial salary or with other forms of recognition.
SMEs, more and more, are willing to determine together with the worker an individual and personalized remuneration, with an important emotional component, taking into account not only the economic aspect but also the psychological aspect in the composition of the remuneration package, that is, the demands in relation to the quality of work and personal life and the professional's environment.
In the Performance Evaluation, it is possible to proceed to the referred determination of the worker's global salary based on transparent arguments and solid approaches related to the fulfillment of labor expectations and set objectives, the potential developed by the professional and the contribution of value to the company from your job, that is, depending on your performance.
The worker can design the composition of his own flexible remuneration, distributed in cash and in kind, agreeing with the management.
Among the advantages of holding the Performance Evaluation, in addition to those referred to in relation to the remuneration policy, I will cite the following, among others; It fosters communication between the employee and the boss, enhances the motivation of the evaluated professional, alienates and aligns the worker with the objectives and strategy of the SME and identifies them with the corporate values and organizational culture of the company.
