Corporate Welfare: why it is becoming increasingly strategic

Corporate Welfare: why it is becoming increasingly strategic

A company that is able to motivate its employees can better face the challenges of a market undergoing great change: many, if not all, share this belief.
There are interesting examples of corporate welfare that can be defined as a set of benefits – sometimes non-monetary – that a company offers employees to improve their level of well-being and thus their quality of life.
Some of the most common corporate welfare initiatives in Italy include: supplemental health insurance, family support services, discounts in affiliated shops, public transport subscription fees, scholarships for employees’ children, etc.

From an economic point of view, this helps both the company and the employee. We can roughly estimate that when a company increases an employee’s wages by 100 euros, only 50 euros actually winds up in the employee’s pocket. When this increase is given in different forms equalling a budgeted value of 100 euros, each employee actually receives 120 euros of benefits. This is due to a series of tax breaks as well as to the company’s greater bargaining power thanks to its large numbers, which allows it to stipulate advantagious agreements.

But the benefits of a well-organized corporate welfare system are not merely economic. A policy which is attentive to employees lets a company improve its organizational efficiency, have more motivated workers and attract the best talent in the market. Involving employees leads to greater adherence to business goals: a satisfied employee has a clearer view of the company’s future, his or her path within it and therefore also their future, and these elements create a positive attitude.

A company that shares its path towards sustainability with its personnel helps create more responsible people who, in turn and in a circular process, increase the company’s comprehensive responsibility.

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