Flexible Rewards

With 2021 in full swing, now is the perfect time to reflect and look back at KPMG’s 2020 flexible remuneration projects. How has flexible rewards evolved, are there noticeable shifts in employee preferences, are employers shifting their focus by adapting their salary packages? Let’s identify some trends by taking a closer look.

It's now clear that employees will also work from home on a regular basis post-COVID. However, there are still discussions around the reimbursement of certain expenses and the provision of homeworking equipment. Tax authorities are now trying to clarify the matter with the new Circular 2021/C/20 on employers' contributions for homeworking that has taken effect on 1 March 2021 and has been approved by the NSSO.

Sustainable mobility is gaining importance in employee remuneration packages, especially in the current war for talent. Employers who want to stimulate green mobility or flexibility in car policies can offer their employees the flexibility of renting a car for a short period of time.

COVID-19 will undoubtedly have a major impact on the way companies pay their employees in 2021.  In the article below, we highlight 8 trends for the coming year.

In a rapidly changing world, the importance of flexible rewards is growing. Changing employee needs, combined with changing business and work landscapes, are forcing organizations to be more agile. Moreover, the need for flexibility has been further reinforced by the COVID-19 pandemic and flexible wages and mobility are fast-becoming integral parts of the future.

In April 2020 our KPMG experts on mobility, flexible rewards and cafeteria plans organized several online sessions. They presented the latest updates for HR professionals and provided key insights on how to implement these.

In order to offer their employees more flexibility in their compensation package, KPMG has developed "Reflex Tool". An application through which employees can compose their own salary package autonomously.

As mobility becomes an increasingly important factor in choosing or changing employers, companies can respond by offering their employees a flexible mobility and reward plan. In addition, letting employees pick their own mobility means or combination thereof, based on their needs is where you make the difference.

More and more companies are using a flexible remuneration and transportation plan as part of their efforts to win the war for talent. Fringe benefits make them more attractive as an employer. This alternative remuneration requires a clear and correct framework.

The war for talent is raging. Rather than employers selecting their employees, the employees are choosing which employers they want to work for. Offering tailored mobility packages is one way companies can tip the balance in their favor.