Wellbeing in the workplace has become invaluable for candidates and, consequently, employers when it comes to building a competitive organisation. Along the same lines, traditional compensation packages are starting to be outweighed by a new dimension of remuneration known as emotional salary — the intangible benefits and emotional rewards employees receive from their work environment. But what does that really mean, and how can you improve the emotional salary you’re already providing? What is an emotional salary?At its core, emotional salary revolves around acknowledging and valuing the emotions, contributions, and needs of employees. Just like an annual or monetary salary incentivises workers to feel appreciated, emotional salary is a less-tangible form of fulfilling an employee's needs in the workplace so they will remain engaged, interested and loyal to an organisation.It encompasses elements like recognition, appreciation, respect, support, and a sense of belonging within a workplace often created through added benefits, perks and workplace culture.Unlike monetary compensation, emotional salary focuses on enhancing the overall quality of work life and nurturing positive relationships between employees and their employers.This, in turn, can lead to increased productivity, reduced turnover rates, and a positive work culture characterised by collaboration and teamwork. That’s why the best organisations with the happiest employees take into account both monetary compensation and emotional salary equally.Translating Emotional Salary into Benefits and PoliciesTo effectively integrate emotional salary into the workplace, think about strategies that prioritise employee wellbeing and fulfillment. Some key approaches are: 1. Recognition and rewards programmes: Implementing formalised systems for acknowledging and rewarding employee contributions can enhance feelings of value and appreciation. This is why many organisations resort to “employee of the month” awards or monetary bonuses every once in a while for an employee’s hard work. However, there can be many other ways to reward employees for their contributions. Something simple we do at YuLife is weekly shoutouts in our all-hands meetings. It costs nothing but a moment of someone’s time and allows someone to be recognised and celebrated amongst their peers for their contributions.Personalised thank-you notes from management or 1-on-1 chats to verbally thank and praise employees for a job well done is also a great way to approach it.2. Flexible working arrangements: It’s 2024 — meaning if your company is operating in a typical office setting without any sort of flexible working arrangements, it’s time to re-think your approach! Offering flexibility in work hours, remote work options, or even compressed workweeks can empower employees to better integrate their professional and personal lives. In fact, research by the CIPD found that 71% of employees value work flexibility when considering new roles — and 69% value remote working opportunities.Because, not only does it demonstrate trust and respect for employees' individual needs and circumstances, but it also allows people to be more productive in the long run by avoiding burnout and taking care of themselves equally as much as they take care of work3. Development opportunities: As an employer, one of your key goals should be to inspire your employees to continuously learn and gain new skills outside the workplace. That’s why many workplaces offer perks such as coaching services or learning budgets. At YuLife, we offer our employees access to a platform called Happi where they can connect with experts who can give them life and career coaching sessions. In addition to this, employees are provided with a learning budget each month to go and invest in something new and expand their skillsets and knowledge. Because at the end of the day, when your employees are improving and fuelling themselves outside of the workplace, they bring that fire back into the workplace.Think of investing in your employees’ growth and development through training programmes, workshops, and mentorship initiatives not only enhances their skills and competencies but signals a commitment to their long-term career advancement. Some workplaces even offer a certain amount of days off a year that employees can take off to go and upskill and take some sort of coaching programme or “sabbatical”. All these are incredible and relatively low-lift ways to boost the emotional salary you’re offering your employees. 4. Comprehensive insurance packages: While offering health insurance is mandatory in many places around the world, it’s another example of something that boosts the emotional salary of your employees — especially if you go the extra mile to provide the not-so-common additional cover options such as critical illness or income protection. When you offer a holistic and comprehensive insurance package, it gives employees and their families the peace of mind of knowing they can access quality healthcare services and are financially protected against any unforeseen expenses, as well as routine costs they would otherwise have to pay out of pocket. Especially in the cost of living crisis and with chronic health issues on the rise — this is an invaluable support for your people that can mean more than you might think. But what makes it even more effective is that it demonstrates your commitment to your employees' physical and emotional wellbeing — which is vital to attracting and retaining talent in the current professional landscape.5. Emotional support services: Providing access to counselling services, Employee Assistance Programmes (EAPs), and mental health resources can support employees in navigating personal challenges and maintaining overall wellbeing.6. Physical health resources The physical aspect of wellbeing is often one of the hardest for the typical office culture. Most people’s days are spent sitting down in front of the computer, or on their phones for hours on end. And too much of this isn’t good for physical wellbeing — which, in turn, impacts the mental wellbeing of your employees and their morale towards the workplace. That’s why it’s important to invest equally in resources that support physical wellbeing and activity throughout the work day. For companies that use YuLife, employees are encouraged to take breaks and walk during the day, take time away from the computer to do a quick meditation/yoga stretch, and simply pull themselves away from the desk for a change. Other additions to the office like standing desks, treadmills, gyms in the office or simply hosting weekly group walks can be great perks and benefits to cater to the physical health of your employees — and boost their sentiment towards the organisation. Overall, the emotional salary represents a fundamental shift in how organisations approach employee compensation and satisfaction. By recognising the intrinsic value of emotional wellbeing and fulfillment, businesses can cultivate a workplace culture that attracts, retains, and motivates top talent. About YuLifeYuLife is working to reimagine the insurance industry by protecting lives, rewarding living and inspiring life. We’re on a mission to transform traditional insurance into a life-enhancing experience each employee will value and use daily. How does it work?Our award-winning app uses behavioural science and game mechanics to reward your people for living well while offering protection in case of crisis. And with our top-rated employee assistance programme, your team gets access to mental, financial and social support, virtual GPs, nutritionists, life coaches and more to help them live their best lives.Because we believe that your employees should benefit from their insurance from day one — and that wellbeing should be accessible every day, for everyone.Request a demo for your team today.