What is included in the full social package? Employee benefits package - what does it include?

Often in the job description, employers indicate the benefits of working in a company with a social package.

Social package, what is it? Under this concept, it is customary to understand a set of certain compensations, additional bonuses that the employer is ready to provide to the employee when working in the company.

Labor legislation does not contain the definition of "social package", therefore there is no clear list of what the social package includes. Some employers include in this concept sick leave, vacation pay, official "white" salary, overtime compensation.

But do not confuse what a social package is when applying for a job. Despite the fact that not all employers comply with the law, all of the above are not additional bonuses of working in a particular company, but are provided for by labor legislation. Thus, it is more correct to call it not a social package, but social guarantees that are provided to each employee. So what is a social package? Let's figure it out.

What is included in the social package?

You can consider the social package as a set of social guarantees provided for by labor legislation, and bonuses that the employer provides to its employees in excess of these guarantees. In this case, we can say that the full social package is:

• Guarantees that are provided in accordance with the law;
• Compensation that is provided to an employee in connection with difficult or harmful working conditions;
• Bonuses that the employer is additionally willing to provide to the employee.

Many employers believe that the employee’s social package includes precisely additional “care” for the employee, that is, the guarantees provided for by law are not included in this concept. It is worth remembering that the employer is not obliged to provide the employee with additional bonuses. If the employer indicated the presence of a social package in the vacancy, then the employee has the right to ask at the interview what is included in the employee's social package.

For its part, the employer has the right to independently decide what to include in the social package for employees. So, social package: what does it include? Typically, employers provide employees with:

• payment for a subscription to a sports club;
• VHI policy;
• food at the expense of the employer;
• tuition fees (for example, foreign language courses);
• granting preferential vouchers;
• payment, provision of housing, etc.

Why is this method of employee compensation so popular lately? The social package is a powerful tool for motivating employees. Each employer uses their own motivation options depending on a number of factors: corporate culture, strategic objectives and goals. However, when combining various tools when building a general motivation system, it must be remembered that it is advisable to use additional tools only when the basic material expectations of employees in terms of wages are satisfied.

Types of social packages

Often the benefits package may differ for employees: it may depend on the position held by the employee, or on the length of service in the company. The employer has the right to differentiate bonuses and determine in which case the employee receives certain privileges. For example, to establish what includes a full social package and divide bonuses for different categories of employees.

This can be a clear structure of benefits: the employee knows what is included in the full social package, and that after his work experience in the company exceeds, for example, two years, he will be paid for foreign language training and a subscription to a fitness club, and a full social package will be provided to him upon reaching five years of work experience in the company.

In addition, the issue of providing a social package can be decided individually with the employer: for example, a nonresident employee can be offered full payment for housing, and an employee who has a long commute to work can get a corporate car.

Don't underestimate giving extra privileges to employees - it's actually very important. Employees of the company are the main resource of the organization, the care of the employer about the employee significantly increases his loyalty to the company. In addition, corporate employee training, for example, is beneficial not only to employees, but also to the employer himself.

The first thing an employer offers an employee is a salary. But now the social package is also becoming relevant. In many job postings, you can see a mention of additional benefits.

Social package: what is it

This concept is not regulated by the state, despite its popularity and demand. However, it is very relevant both among applicants for prestigious positions and among employers. The presence of a social package provides unconditional advantages when taking office.

It is impossible to confuse the concept of social guarantees and the social package. An employer of any level is obliged to provide its employees with guarantees approved by federal law.

Social package as a way of motivation

The list of benefits often becomes a reflection of the distribution of power within business units. With its help, the status of the employee is emphasized, so this concept is increasingly gaining weight and significance.

When forming the package, options are allowed, but its unifying feature in any enterprise has become the payment by the employer of the proposed additional benefits.

For example, often the social package includes medical care or rest in a specialized sanatorium. Some employers are limited to providing a mobile phone or assistance in renting temporary housing.

The list of benefits sometimes includes memberships to the pool or fitness center. And even known since Soviet times, this is also part of the social package. The priority component in any option of privileges is the payment of transportation costs.

If the employer guarantees employees medical insurance, then he is more likely to get qualified specialists and secure them in his production.

The social package is the best way to motivate staff and attract valuable employees.

At the same time, it cannot be said that the presence or absence of social incentives is the main criterion for choosing a job. In recruitment agencies, there are rarely cases of refusal of a position due to the lack of a social package. This is rather a good bonus and an additional incentive when making a decision.

How the social package is formed

Most companies practice a heterogeneous list of benefits.

Modern employers practice three ways of its formation:

The social package contains a psychological factor. He works for the cohesion of the team and the formation of corporate culture.

The social package is beneficial for both employees and employers. For management, this is a good chance to retain valuable employees without wage increases. For employees, this is a significant support from the employer.

Full social package: what includes

So, in the labor legislation there is no such term. But the legislation provides for the obligation of any employer to provide each member of the team with social protection.

The provision of basic guarantees is not the "favor" of the employer. Providing employees with annual leave or providing unscheduled time off in connection with a wedding, the employer does not express any special disposition towards the employee, but fulfills his direct duties. The same applies to the formation of a package of documents on labor protection, payment for sick leave or referral for a medical examination.

The full social package includes rights guaranteed by law and additional social benefits from the employer. However, the list of additional benefits is regulated by the employer.

It is important that this nuance be emphasized in the employment contract. When applying for a job, additional preferences in the form of a full (extended) social package are offered by reputable companies. Moreover, the employer has the right to vary it for different positions.

The social package includes a different set of options - from the minimum required by law to an extended list of privileges. In the article we will consider the types of social packages.

From the article you will learn:

An employee's social package, often called a compensation package, is a remuneration for work that an employee receives in addition to salary.

What is included in the employee benefits package?

The cost of the social package in different organizations ranges from a third to a half of the salary. Each company determines independently what is included in the social package. Payment for sick leave and holidays are the only obligatory items in the composition of the social package.

Additionally, companies include the following compensations in the package:

• reimbursement of expenses for food;
• additional health insurance;
• additional payment up to average earnings during the illness of an employee;
• additional payment up to average earnings during the pregnancy of an employee;
• reimbursement for travel to and from work;
• gifts for children New Year and Christmas;
• theater or concert tickets;
• free vouchers to boarding houses;
• payment for kindergarten;
• interest-free loans for employees to buy an apartment;
• payment for an employee's rented apartment;
• pool passes, gym or a martial arts section;
• reimbursement of utility bills;
• free tutorials trainings, courses and summer schools for employees.

The answer was prepared jointly with the editors of the magazine "Director for Personnel"

Answered by Olga Rymkevich,
HR Director of PM Standard.

It would seem clear what exactly to include in this expense item. The traditional social package usually consists of medical insurance and a card to a fitness club. Sometimes they add free meals, tour packages, and, if necessary, corporate transport. But what is your company ready to provide to employees?

What types of social packages are there?

A complete social package is a rare phenomenon.

For example, Procter & Gamble offers its employees the following compensation package:

• medical policy;
• free lunches in the office;
• Cristmas presents;
• discount on the company's products.

How to determine the composition of the social package? There is no single algorithm. There are several principles for the formation of a social package.

Principle #1. To each according to merit

The meaning of this principle is simple - the longer an employee works in the company and the higher he is in the hierarchy of the organization, the more benefits and compensation he receives. The company has several categories of employees: top managers, middle managers, specialists, etc. Each category is assigned its own social package of the employee.

The advantages of this principle are its consistency and rationality. Employees do not have questions on what grounds compensation is provided.

The company does not incur additional expenses for paying the social package for the employee of the starting position, which has the highest staff turnover.

Show what it costs the company to care for employees

Principle number 2. Everyone decides for himself

According to this principle, the employee chooses a set of compensations himself. You can choose a fixed amount. Gym or free English courses? Life insurance or a trip to a sanatorium? Each employee chooses according to their needs. The application of this principle will allow management to emphasize that the opinion of the employee is important in the formation of the social package of the organization.

Principle number 3. To each one's mind

The application of this principle in the Russian labor market has recently begun. The essence of the principle is as follows. Each employee of the company undergoes a final certification once a year. Attestation results are converted into points. The employee chooses the points of the compensation social package in any combination for the earned points.

Staff efficiency

The state protects the labor rights of citizens. Many associate social package with their implementation. But this term has a broader definition and does not always fall under the regulation of the law.

Normative base

The concept of a social package is not provided for by law. does not contain its description and does not regulate the order of application.

But the law describes the basic labor guarantees (salary, vacation, and others) specified in Section V - VII of the Labor Code of the Russian Federation. They are basic and laid down for all employed citizens.

Other additional conditions are not provided by the state. The employer expands the list of privileges for employees at its discretion.

Definition

The social package is the labor guarantees laid down for the employee during employment. However, not all employers provide it. The reasons:

• informal employment;
• shadow employment;
• Company policy.

Citizens, getting a job, pay attention to vacancies with improved conditions. But at the same time, not everyone knows what a social package is.

There are two definitions of this concept.

1. The social package is the basic guarantees of the state, provided for by the Labor Code. Many employers include vacation, sick leave and timely wages in this concept. But these conditions are not privileges. They are mandatory for all citizens working officially.
2. The social package is an additional bonus that employees can count on when they are employed. They receive them in addition to basic guarantees from the state. Privileges may vary from company to company.

Both points of view are acceptable. But the latter is preferred. Many employers seek to improve working conditions, which allows them to additionally motivate employees and attract as many job seekers as possible. Therefore, the volume of bonuses they provide includes a social package with increased privileges. Their list is much wider than in standard and legally binding guarantees.

Basic social package

The full social package includes the following guarantees.

Advice

All of these conditions must be met by the employer. They are basic and protected by labor legislation. If one of them is violated or not fulfilled, you should contact the labor inspectorate or the court.

Additional warranties

In addition to the basic ones, some employers offer employees additional conditions.

1. Food. In a number of companies, workers are fed free of charge. Products and dishes are issued at work at the expense of the company. Such a bonus is often provided in food organizations: cafes, restaurants and bars.
2. Housing. According to the working conditions, an employee may be offered accommodation in a rented or corporate apartment. The employer pays for housing in whole or in part. In some companies, for labor achievements, housing can be transferred to the ownership of an employee.
3. Gifts for the holidays. Many organizations (including state ones) congratulate employees. Commemorative gifts can also be given to the children of employees.
4. Issue of corporate equipment. This category includes office laptops, phones and other electronics.
5. Bonus. Includes additional cash payments. Employees can be encouraged based on the results of the month, quarter or year.
6. Corporate events. May be conducted at the discretion of management.
7. Free trips. Large organizations sometimes issue vouchers to sanatoriums, camps and resorts for employees and their families.
8. Additional salary. In another way, it is called the thirteenth. It is awarded at the end of the year as a bonus.
9. Company-sponsored training. This category includes seminars, lectures and refresher courses. Interested workers are sent there.
10. Paying for gym memberships. Fitness is welcome in many companies.
11. Others at the discretion of the employer.

This list is not exhaustive. Management independently determines the conditions included in the social package of their company.

Advice

Additional labor bonuses are not regulated by law and are not mandatory. If the company has been providing certain privileges for a long time, this does not mean that if they are terminated, the employee can apply to the court for the protection of their rights. An extended social package is a right, not an obligation, of an employer.

Kinds

There are several types of social package, but the division is not regulated by law and is given for reference purposes.

Table 1. Types of social packages

Possibility of refusal

The signing of an employment contract implies the acceptance of all its conditions. These include the provision of a social package.

From the first working day, the employee has the right to labor guarantees. Depending on the policy of the company, in addition to the basic privileges, he may be granted elevated privileges. He can refuse the social package at his own discretion, but this will entail certain legal consequences. The employee will not be able to invoke the norms of the law and apply for protection in court, since he refused the working conditions of his choice. For example, if the employer offers to take sick leave and the worker refuses, the right to treatment will remain unfulfilled. But this is not the fault of the leadership, which means that the law will not be violated.

The same rule applies in case of refusal of additional bonuses (free meals, corporate events, etc.): in this case, there will be no legal consequences for either party.

So, the social package is a combination of state guarantees and additional privileges. Not all employees are eligible for bonuses. The employer independently determines their volume and order of appointment.

An extended social package is always an initiative of the company's management, while basic guarantees are provided in accordance with the Labor Code.

Attracting employees with just salaries and career opportunities is now quite difficult. The companies began the struggle for qualified personnel. And among the numerous motivation systems on the part of the employer, it stands out social package. This practice in Russian organizations began to take shape relatively recently. And until now, most employers prefer not to spend additional money on staff, considering the social package as an optional element. But those firms that know how to count their money still try to attract valuable personnel with additional guarantees. Traditionally, the most complete packages are offered by large Russian and foreign companies. Here the social package is perceived as way to increase the attractiveness of the company in the labor market and win the loyalty of specialists.

All inclusive
A social package is a set of benefits or additional services that the employer pays for. There are state-guaranteed benefits that are mandatory for all institutions. This is payment for annual leave, temporary disability, benefits for young employees and women. “The social package is something additional that a company can offer in addition to the basic salary. In each company, such compensations look different, - says Natalya Usoltseva, HR manager of the Bizon-Laplandia chain of stores in Yekaterinburg. - If we talk about our company, we act in accordance with the Labor Code, that is, we pay for sick leave and vacation, we allocate funds to pension and insurance funds, and we also provide medical insurance. After all, a law for compulsory health insurance has recently been issued. ”Also, according to the law, the employer must necessarily compensate for the use of personal property for work purposes. That is, if an employee uses a personal car or cellular communication for his work activity, then he is entitled to reimbursement of expenses. What else to include in the social package depends entirely on the company itself. Other benefits may include travel, childcare, continuing education courses, product discounts, sports or housing.

Three approaches to the social package

If we generalize the experience of companies, including Yekaterinburg, then there are three approaches to the formation of a social package. The first is that a set of privileges is established depending on the merits of the employee: the higher his position and the longer the length of service, the more various benefits he enjoys. Employees of the company are assigned a certain category, which implies a certain package of benefits. In the second approach, the benefits that are included in the social package are divided into basic and additional. At the same time, basic or protective benefits are provided to all employees (health insurance, life insurance and pension payments). And additional benefits (loans for the purchase of housing, free lunches, the right to buy company products at reduced prices) can only be used by certain categories of employees, for example, top managers or employees who have worked in the company for more than five years. Another option for the formation of a social package is an independent choice by the employee of the list of benefits from the list within the established amount. For example, one would prefer paying for tuition, another would prefer additional health insurance, and a third would prefer paying for a subscription to a fitness club.

Pleasant and helpful

The presence of a social package for many employees is a guarantee of reliability and stability. Depending on what the employer offers in the social package, a potential employee can decide how comfortable he will be in this company. “Additional social benefits are very significant when choosing a place of work,” says Svetlana Galba, HR Director at Sima-Land in Yekaterinburg. - Compensation package is usually the first question when applying for a job. Applicants will find out if the benefits correspond at least to what is required under the Labor Code.” As social benefits, the employee receives certain support from the employer. And consequently, the enterprise increases labor productivity, improves the atmosphere in the team and reduces staff turnover. However, the social package is also beneficial for the company itself. By providing additional benefits and guarantees, employers often retain valuable employees without a significant increase in wages. The psychological factor is also important - the cohesion of the team, the friendly atmosphere in the company. Indeed, for employees, the manifestation of care on the part of employers is sometimes much more important than financial incentives.

Benefits or salary?

Very often, candidates are lost, choosing between an attractive social package with a lower salary and a high salary without additional benefits. The decision, as a rule, is made individually, but recently in many companies in Yekaterinburg, preference is increasingly given to the first option. Sometimes it is very difficult to independently allocate money for additional needs: to get medical insurance or buy a subscription to the gym. And all people are pleased to work in a company with a strong corporate culture and personnel policy that takes into account the interests of each employee.