More and more enterprises are looking into a packaged salary system. A packaged salary system is paying employees with perks and benefits at the cost of a lower salary.
That might not sound appealing to everyone at first, but it helps out employees by a ton by providing them tax relief.
Helps Out Employees
It also helps out employees as they can team up with their sponsors and partners and offer employees exclusive deals, and gives them an easier way to reward top performers and penalize employees who perform below expectations.
However, the usefulness of a certain salary package varies from one employee to another.
For example, some might find being provided a family car a very useful perk, while some would find it redundant and would rather prefer free passes and discounted coupons for public transport.
This is where the idea of providing a customizable salary package comes to mind: as different employees have different expectations and different needs, a customizable salary package allows greater overall employee satisfaction.
Providing customizable packages, however, may not be a straightforward task for employers.
Firstly, additional staff needs to be hired to manage the whole process, increasing costs, and then, it might take quite a bit of time to change and confirm the package.
Also, it becomes harder to track everyone’s customized salary packages, and requires additional labor to transfer the data to other sectors of the business, like its accounts sector.
One can consider streamlining the process with the use of ERP software programs. Many management programs offer a method to technologically integrate payrolls, but few also offer customizable salary packages.
Hence, it can be confusing to decide which software program is suitable for this particular function.
Moreover, having a technologically integrated payroll allows employers to collect data for surveys: this means employers can deduce which perks are favored over others.
They can decide which kinds of benefits they should add and which ones are no longer helpful, and even get a clue about their overall employee demographics and tweak other aspects of the enterprise.
We’ll discuss exactly that and look into how they help make the payroll system cater to every employees’ needs and ensure employee satisfaction.
Firstly, it’s important for the employer to consider a management software program that is open-source.
Copyright holders of open-source software programs allow the users to modify the source code and distribute the modified version. If the software program is open-source, like Odoo, then employers will be able to add custom options to salary packages.
For example, they’ll be able to assign value to each perk, and employees selecting that perk will have that exact value deducted from their salary. Firms like Syncoria specialize in modifying open-source software programs so this would allow employers to set up the payroll system.
Besides, a management software program with an accessible user interface will streamline the process.
Neither will employees be required any training to use the software program, nor will they require a middleman to do the work for them. Employees can change their software package at any time, any place, and the data will be instantly updated to other modules.
Alongside, it’s important to choose a management software that will integrate easily to other modules of a software program, like accounts or expenses.
Without technological integration, the process of providing employees a customizable salary package was rather cumbersome since expenses were needed to be manually updated, and there were delays.
Managers struggled to make decisions based on payrolls in that manner, so technological integration not only cut down costs but also became a time-saving measure by improving decision-making time.
Furthermore, it helps if the module allows employers to install the country’s payroll. This means there’s no need to input values manually into the salary package configurator as they will be automatically updated, and calculations such as income taxes will always be up to date.
Odoo HR and salary package
With particular applications like Odoo HR, one can include a lot of perks into the salary package configurator.
The layout for this configurator is called the Cafeteria Plan, and the inclusion of sliders and check boxes, as well as a reactive information panel that displays monthly salaries, and monthly and yearly advantages makes user interaction more intuitive.
There’s no need for legal formalities and exchanging emails back and forth to come to an agreement.
The process is simple: the HR officer sends the contract with the configurator to the employee, allowing them to test different configurations for their salary package and sign the contract once the package fits their needs.
Pre-set offers that the module includes are allowing employees to choose a particular vehicle, key in a certain value for internet packages and cellular subscriptions, and allowing employees to choose either extra leave days, or fewer leave days for a higher salary.
It also allows employees to opt-in for coupons, vouchers, and discount cards. They can also see information about how much holiday bonus or commission they’ll receive at the end of the year; employees prefer transparency in work so having this configurator will allow the business to be totally transparent with their salaries.
In conclusion, while business owners may hesitate to move into a customizable salary package system, it’s evident that one can make that change far more easily when it’s technologically integrated.
Based in Canada, Syncoria has been providing business solutions all over the world for over 14 years.
We are an Odoo-ready Partner that specializes in integrated business solutions, and ERPs are one of our specialties. Your inventory, CRM, accounting, HR and every other need can be managed with ease through Odoo’s ERP, and three million business owners who use Odoo around the world agree.
Feel free to schedule a consultation with us for any business related questions and estimates.