Fixed vs variable: What truly motivates your team?

The design of compensation packages is not just a matter of numbers. With an increasingly competitive talent market, finding the balance between stability and motivation is key to attracting and retaining top professionals. How can you achieve this? Through transparency, education, and a strategy aligned with talent expectations.

Why in spain we prefer fixed salaries

In Spain, fixed salaries remain the preferred option. This trend responds to historical, cultural, and economic factors that have shaped the labor market:

• Economic security: Recent economic crises have reinforced the need for stability among workers.
• Traditional work culture: Many companies continue to favor fixed salary models, reinforcing this preference.
• Risk aversion: The uncertainty of variable pay generates rejection in a market that prioritizes predictability.
• Lack of transparency: Sometimes, variable compensation systems are not clearly explained, leading to mistrust.
• Small business size: Many SMEs lack the resources to implement sophisticated salary strategies.
• Limited professionalization: The lack of external advice hinders the adoption of more innovative compensation models.

Lessons from abroad: models that can inspire

Analyzing other markets can provide valuable insights for designing a more effective compensation system:

• United states and United Kingdom: They support variable pay linked to individual and business performance. While it incentivizes productivity, it also creates greater pressure on employees.
• Nordic countries: They opt for competitive salaries complemented by advanced social benefits, such as extended leave or wellness programs, fostering talent loyalty.
• China and Japan: In China, incentives focus on collective performance, while in Japan, long-term incentives such as pension plans and job security are prioritized.

Keys to designing a compensation package in your SME

If you want your company to stand out in talent acquisition and retention, consider these strategies:

1. Know the market

Conduct salary benchmarking regularly to compare your offer with the competition and maintain competitiveness.

2. Incorporate variable components

Don't limit variable pay to sales teams. Establish clear and achievable incentives for all departments, aligned with business objectives.

3. Additional benefits

Compensation is not just salary. Flexible hours, training, extra vacation days, or remote work can make a difference in the perception of value.

4. Transparency above all

Clearly explain how incentives and benefits work. Lack of clarity breeds mistrust and reduces motivation.

5. Internal education

Incorporating variable compensation models requires an educational effort within the company. A well-informed team will feel more motivated to achieve its goals.

Servitalent's role in this process

At Servitalent, we have over 10 years of experience helping companies design effective compensation strategies within our selection processes. We provide tools so that companies can make informed and strategic decisions when incorporating talent.

A well-designed compensation plan not only improves your team's satisfaction but also drives your company's growth and competitiveness.

Are you ready to optimize your salary strategy?