Special rewards

1. Introduction to the topic of special bonuses

The world of work is much more than just the simple exchange of work for financial compensation. A well-functioning company that has a positive corporate culture aims to strengthen the loyalty and commitment of its employees. Special bonuses play an important role in this quest.

Special bonuses are a form of additional remuneration that goes beyond the normal salary. They serve as an additional incentive and reward the commitment and performance of employees. These bonuses can be structured in a variety of ways: In addition to one-off payments such as bonus payments or anniversary benefits, this can be in the form of payments in kind or vouchers.

Appreciation and motivation

With special bonuses, companies recognize the commitment of their employees and show them appreciation. In addition to the financial impact, they also have an emotional component. They express to employees that their work is seen and appreciated. This can immensely increase work motivation and job satisfaction.

Staff Retention and Employer Branding

Regular recognition of employee performance and commitment through special bonuses can not only improve loyalty to the company, but also have a positive effect on employer branding. Employees who feel valued and rewarded are more likely to remain loyal to the company and contribute to strengthening the company image both internally and externally.

The following chapters of this guide go into more detail about the various aspects of special bonuses, explain the legal background and show what positive effects they can have on individual companies and society as a whole. In this context, the use of regional benefits cards in kind, which guarantee tax-free employee subsidies and can contribute to promoting the local economy, is also examined in detail. The focus is on sustainable employee motivation and retention.

2. Legal aspects of tax-free employee subsidies

Tax-free employee benefits, also known as benefits in kind, have become increasingly popular in recent years, both among employers and employees. But which legal aspects must be considered?

Statutory regulations

In accordance with Section 8 (2) sentence 11 of the Income Tax Act (EStG), payments in kind are tax-exempt up to a monthly value of 44 euros. However, to take advantage of this scheme, employers must offer the subsidy in the form of goods or services and not as a cash payment. This provision is primarily intended to provide employees with additional benefits without them having to be taxed.

Consequences of mistakes

If the benefits in kind are mishandled, there is a risk of tax disadvantages. If the value of the payment in kind exceeds the allowance of 44 euros, the entire amount becomes taxable - and not just the excess amount. In addition, there may be fines if the tax authorities identify irregularities. It is therefore essential to obtain comprehensive information about the legal regulations and to comply with them.

Absolute priority of wages

It is important to note that benefits in kind may only be granted in addition to the salary owed anyway. It is not legally possible to convert wages into tax-free benefits in kind.

Clear knowledge of legal regulations and their correct implementation are therefore essential if companies want to benefit from tax-free employee subsidies. With the right strategy, these can be a valuable method for employee motivation and retention.

3. How special bonuses can contribute to employee motivation and retention

For many employees, special bonuses or bonus payments are much more than just additional money. They are recognition and appreciation for the work done and a signal that the employer appreciates the efforts and achievements of their team.

Motivation through special bonuses

Motivation is an important aspect of special bonuses. They are a type of incentive that can help team members get more involved and show a higher level of commitment. The general idea behind this is simple: when employees know that additional performance and efforts will be rewarded with a bonus, they are more willing to go that extra mile. This type of reward can result in increased productivity, better work ethic, and an overall more positive work environment.

Employee retention through special bonuses

In addition to motivation, special bonuses are also an excellent way to retain loyal and committed employees to the company. This is particularly important in today's world, when the job market is fast-paced and competitive. With special bonuses, you signal to your employees that you appreciate and reward their hard work and dedication. This often leads to a stronger bond with the company, as they feel valued and recognized.

However, it is important to note that special bonuses alone are not enough to motivate and retain employees with the company. They should be part of a comprehensive package of benefits and incentives, including aspects such as work-life balance, professional development and a positive corporate culture. Yet they're an effective tool in your arsenal to increase motivation and employee retention.

4. Positive effects of special bonuses on the local economy

When you use special bonuses as a tool for employee motivation, it not only affects the satisfaction and retention of your employees. The effects of this go far beyond offices or workplaces and can have a significant positive impact on the local economy.

Supporting local businesses

First, special bonuses in the form of regionally effective benefits cards promote local businesses. The redemption points for such cards are often local small and medium-sized enterprises (SMEs). These SMEs form the backbone of the local economy. As a result of the credits on these cards, a large part of the amount flows directly to local shops and service providers. This strengthens purchasing power at the location and ensures that cash flows remain in the region.

Stimulating the economy

Second, special bonuses have a stimulating effect on the local economy. Money spent in the region often circulates multiple times and generates additional economic activity. When employees spend their special bonuses in regional stores and service companies, they not only support these companies, but also revive the entire economic cycle. This can lead to an increase in local gross domestic product and to the creation and security of jobs.

Strengthening regional cohesion

Thirdly, when employees redeem their bonuses in local retail stores, this also strengthens social and regional cohesion. A lively local economy with diverse shopping and service offerings increases the attractiveness of the place to live and work and improves the quality of life for all residents.

Overall, special bonuses therefore help to improve employee retention and satisfaction, strengthen the local economy and promote social interaction in the region. It is therefore worthwhile to integrate special bonuses into corporate policy as a strategic tool. They are not only an investment in employees, but also in the local community and economy.

5. Practical examples: Successful deployment and implementation strategies for special bonuses

Special bonuses play an important role in the composition of an attractive compensation package for employees. There are tried and tested strategies for effectively designing and implementing these benefits, which we would like to present to you in this section.

Strategic planning and consideration of tax benefits

The first step in implementing special bonuses is strategic planning. The first step is to identify which types of subsidies or bonuses best meet the needs and wishes of your employees. In addition, the chosen form of special premium can result in tax benefits for both the employer and the employee. This potential should definitely be considered during the planning phase.

Communication and transparency

Special bonuses must not be introduced in secret. Clear and transparent communication about the availability, distribution and conditions for receiving bonuses is decisive for the success of the measure. Creating a clear guideline for special bonuses that is accessible to all employees can be very helpful here.

Supporting the local economy

One innovative strategy for effective use of special bonuses is to support the local economy. This can be achieved by issuing grants that can be redeemed at local stores and services. This not only promotes employee loyalty to the company and the region, but also supports local economic life.

Motivation and retention through tailored premium plans

Special bonuses can also be used as part of an overall plan to motivate and retain employees. Tailored solutions that respond to the specific wishes and needs of the workforce have proven to be particularly effective here.

Overall, these practical examples show the wide range of options offered by the implementation of special bonuses in companies. With a carefully planned and well-communicated strategy, these valuable tools can help increase employee engagement and satisfaction while making a valuable contribution to supporting the local economy.

6. Conclusions: The benefit of special bonuses for companies and their employees

It is important to recognize and utilize the significant role that special rewards play in the modern business world. They are not only an expression of appreciation and recognition on the part of the company, but also offer numerous benefits for both sides — employers and employees.

Impact on employee retention

One of the main goals of special bonuses is to strengthen employee loyalty. They offer a concrete opportunity to recognize and reward employee performance and make employees feel valued and valuable. This in turn can lead to increased satisfaction, productivity, and loyalty to the company.

Benefits for companies

At the same time, the positive effects of such bonuses can go beyond the immediate employee relationship. Strong employee loyalty to the company reduces turnover, which lowers the costs of recruiting and onboarding new employees. Increasing productivity through satisfied and motivated employees can also have a positive impact on the company's success.

Supporting the local economy

The benefits of special bonuses also extend beyond individual companies and can even strengthen the local economy. When workers receive incentives to spend their bonuses with local shops and service providers, the economy in the region is supported. This not only strengthens the community in which they live and work, but also provides opportunities for a diverse and vibrant local economy.

In the end, special bonuses provide a win-win situation for everyone involved — employees, the company and the local community. Their strategic and effective use is therefore crucial for successful corporate management and personnel policy.