Čím pružnější, tím konkurenceschopnější – to platí i pro benefity

The more flexible, the more competitive - this also applies to benefits

In the context of the government's upcoming consolidation package, adjustments to employee benefits are also being intensively discussed, as their tax treatment could change significantly.

The media attention and politicisation of the topic is thus understandably reflected in a negative mood among employees and employers. However, instead of waiting with folded arms, the more nimble ones can use the unpopular cuts to change their entire benefits scheme and become more competitive and attractive to their current employees and job candidates, even as employers.

New opportunities are suggested, for example, by EY's recent research into remuneration and employee benefits. According to it, almost 50% of Czech companies are now aware of employee dissatisfaction with the level of remuneration and the range of employee benefits on offer, and more than 90% are willing to consider changes to their benefit schemes, including expanding the range of benefits on offer. On the other hand, a full three-quarters of companies are only prepared to make changes if they do not increase the financial burden on the company.

The solution may be what more than half of the companies say employees would welcome, namely a shift from standardization to personalization, i.e. allowing employees to set what benefits they can draw and in what amount within one benefits package. Just as flexible working and home-office needs and options vary, so do employees have individual preferences in benefits. For some, a parking space or employer-provided transportation is essential, while others prefer to subsidize health prevention and recovery programs. Some are more motivated by assistance and insurance, others by technical equipment for private use.

Thus, the planned changes in the area of taxation of benefits need not be perceived as making additional remuneration impossible. Whether the employer is large or small, the more flexible the more competitive. And this age-old rule also applies to the ability to provide employee benefits.

If you have any questions, please contact the authors of this article or the EY team you work with.

Authors:

Zdeněk Dušek

Adam Linek