“Emotional salary”… why it matters so much to millennials in Mexico

It is known as emotional salary and is focused on the Millennial generation (24 – 37 years of age) and Generation Z (under 23 years), we will tell you what it is about.

Traditionally in Mexico,  to earn what is considered a “good salary”,  one must “start from the bottom” and work up,  little by little over time, promotions will come. In the heart of  young Mexican´s a new type of salary has emerged, and is gaining ground.  Several firms have been able to apply it when negotiating the pay of a vacancy and attract new talent to their work spaces.

According to several expert research firms in human capital management many businesses have started using a new way to pay their emloyess.  This new pay scale is known as the  ” emotional salary” and is centered around the Millennial´s (those between 24 – 37 years of age) and Generation Z (those under 23 years of age). Gradually this is turning into a new business pattern, with much lament from a portion of the Mexican Baby Boomers (those born between 1944 to 1964) and Generation X (those born from 1965 to 1980)

IYEM offices in Merida

But…What is an “emotional salary”? according to the OCCMundial job market, this pay scale is based on non-economic retributions which make employees happy and cause not only their productivity to rise up to 33%, but also their level of commitment to the companies, satisfaction and efficiency in the activities they elaborate as well. OCCMundial assures that this reduces 66% of the days lost due to failure to meet goals; and at the same time,  minimizes absenteeism by 51% due to accidents, work incapacities,illness or  personal problems. OCCMundial guarantees that it diminishes 66% of the days lost because of inability to meet objectives; and in the meantime, it limits truancy by 51%.

Through the organization 2b Marketing, we led 4 focus groups with 40 young men and women. 20 were undergraduates from the following local universities: Universidad Marista, Anahuac Mayab, Universidad Autónoma de Yucatan, and the other 20 young professionals already working in varios fields . We showed them a portion of the non-monetary advantages, referenced by OCCMundial that individuals would acknowledge, in return for not having an extremely high compensation. After studying the references provided by experts the members of the focus groups agreed with several of the focal points mentioned. Here are the most acknowledged.

  1. Home office and flexible schedule: They appreciate working from home or any other space without having to be in an office. Although workdays are  comprised of 8 hours,  Millenials and Generation Z value not having a strict entry or exit schedule because the important thing for them is to reach the goals.
  2. Professional training: Courses, workshops, diplomas, masters and doctorates that promote the employee’s professional career.
  3. Promotions and movement: Promotions or a change to an area that best suits their skills.
  4. Opportunity to get involved in social responsibility projects.
  5. Daycare: For young children in the same workplace, or for schoolchildren during holidays.
  6. Free days: Birthdays and celebrations are important to them.
  7. Leisure spaces: Rooms for rest, games or television, gyms or other areas that help to disconnect from work.
  8. Office benefits: Having the tools to do the job in the best way, as well as “small” details such as breakfasts or meals on behalf of the company.
  9. Employee discounts: On the company’s products or on those of the firm’s clients.
  10. Emotional support. For them, emotions are an important issue. Many mention the need of a “mental health day ” when needed.

 

The Yucatan Times
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