At the end of every month employees get their salaries, whether it is an employee in Israel or abroad. Any salary arrears could be subjected to fines and lawsuits.
Beside the monthly salary, there is an option for additional rewards for employees, known as employees’ benefits.
Adecco Israel provides wide range of services to Israeli and foreign companies around the world and has extensive knowledge of the possible benefits provided to employees at different countries.
Adecco provides many and varied benefits to its employees while getting acquainted with the mentality and customs in each country.
What are the benefits provided to employees? How are these benefits reflected at the international level? What benefits are there?
You will learn about all of this and more in the following article.
In this global era which we live in, there are international companies that are spread throughout the world, and they often offer the most lucrative benefits.
Adecco provides up to date management solutions that are beneficial to both sides – the employer and the employee, and also, proficiency in the variety of employee benefits provided around the world.
Employees’ benefits abroad change in accordance with the nature of each country. In countries that have strong employee committees and a culture that encourages benefits, such as the Scandinavian countries like Denmark, Sweden, and Finland – the employees will usually receive more benefits.
In most countries, the variable benefits, such as bonuses and vacation days, are tax free. On the other hand, capital benefits, such as shares and option (when they are exercised) – will be taxed. However, this could be different in some countries.
Adecco provided its employees with benefits and makes sure to maintain their satisfaction. These benefits have been proven to be effective for morale as well as positive productivity of the employees, who feel that the effort they put into their work is appreciated.
Adecco is familiar with the different markets in different countries around the world, and therefore can provide benefits suitable for any country a company might want to expand to.
Rewards for employee’s work consist mostly of a salary, in most cases a monthly salary, but not of that alone. Rewards come in many shapes and forms, such as benefits.
“Employee’s benefits” is a general name for any reward that has a monetary value, or a potential monetary value, that is given to employees in return for their work or an outstanding contribution – such as success in a special project, reaching higher achievements than expected, etc.
In face of the vast competition over manpower in the labor market, the world of benefits in recent years has become one of the key tools used to attract candidates and employees and retain them in the company.
When it comes to the international labor market, the competition is increased, and a salary alone cannot always be a tool to attract and maintain employees.
Therefore, many companies invest resources and efforts to finding original benefits that are valuable and attractive – with the understanding that the competition for the employees’ hearts can be decided by them.
The field of benefits in Israel is diverse, although overseas it is nearly endless. The classic field of benefits overseas is diverse and includes many different types of benefits.
There is a type of benefit that is usually granted to attract and retain employees, and therefore it is provided regardless of a certain amount of work or an extraordinary success in a specific project. This type consists of benefits that meet the daily needs of employees.
Such benefits may include a company car, vouchers for restaurants and entertainment, granting vacation days in addition to the standard amount, providing or participating in various insurances and more.
Another type is variable pay. Variable pay is the definition of a wage increase in accordance with achievements, given as a reward for extraordinary work, or out of a specified need to retain a specific employee in the company.
The most simple and common reward is a bonus – a one-time sum of money that is added to the employee’s salary. For example, salespeople have an incentive by receiving sales commissions, and as a result they are encouraged to invest more – not only in the amount of working hours, but in hours of quality and effective work.
One of the most common rewards nowadays in many companies that are traded in the stock exchange is granting of shares or options. Due to the rise in their popularity, it is important to know the difference between them.
A share is a real financial asset, as is has a monetary value. The monetary value of a share is derived from the company’s worth and its total amount of shares. For instance, if a company is worth a million dollars and it has ten thousand shares, then each share is equivalent to a hundred dollars.
Offering such a share to an employee is like giving him one hundred dollars, but it does not end there – if the company’s worth is increased to two million dollars, then the share doubles its value, and at that point the employee has a financial asset worth two hundred dollars.
The financial assets worth is derived from the company’s worth, and therefore receiving a share as a benefit is lucrative when there is an expectancy for the company’s market value to increase.
Options, on the other hand, are not financial assets. They are letters of commitment which guarantee the recipient of the benefit the option to buy shares of the company at a pre-determined price.
An option is granting the employees with an opportunity to buy a share of the company at a fixed price. If at the time of exercising the option the company’s market value is increased, then the net profit for the employee is the amount between the price of the share and the share’s value after the increase in the company’s worth.
Generally, employee benefits abroad are not a matter of countries, but for the employing companies themselves. The distinction according to companies and not according to countries is twice as true in the global age we live in – which has many international companies, that usually offer the most original and affordable benefits.
At the same time, there are several criteria that will differentiate in general terms between countries in the level of benefits provided to workers.
First, benefits to foreign employees in the public sector vary according to the nature of each country. In countries with strong Workers’ Committee and an organizational culture that encourages benefits – the employees will receive on average more benefits.
These countries include the Scandinavian countries, such as Denmark, Sweden and Finland, and surprisingly, Israel is also included in that list.
The second criterion, which almost completely omits large international companies – is the state of the local economy. When the labor market is in a state of full employment (characterized by a low unemployment rate), competition for employees is expected to be higher, meaning that companies will invest in incentives for quality candidates in order for them to leave their position in other companies and join them.
In such a situation, the benefits will be higher.
On the other hand, if the labor market is characterized by instability and high unemployment, as it is today – when almost all labor markets around the world suffer from an unprecedented rise in unemployment rates – then the main incentive for labor has returned to the basic wages, and accordingly the use of benefits as an incentive for employment or retention has declined.
Adecco is a global company providing business solutions in 66 countries around the world. Adecco provides its clients with comprehensive and professional advice in a variety of services that are precisely tailored to the needs of the client company.
Among its many services provided by Adecco Israel, you may find employment solutions, administrative management, recruitment and placement services, consulting and financial management and more.
With the assistance of Adecco Israel services, your company will be able to operate with full effectiveness in every country in the world, while receiving assurance that a leading international company is taking care of the areas that are necessary for you.
Contact us today and we will be happy to be at your service.