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The impact of emotional salary on organizational culture.

Author: Mirella Mathieu


Organizational culture is going through a unique moment, where the pandemic, technological advancements, new generations, and "The Great Resignation" are changing the rules of the game.


Globalized, flexible work with a focus on the well-being of those who perform it is here to stay and is changing the culture within companies. We no longer have to work reluctantly or dread Monday mornings because we can work from wherever we want and with a flexibility that was unimaginable before. At least that's the case in technology companies like ARKHO, where we prioritize the well-being of our employees and focus on achieving objectives rather than the hours spent sitting in front of a computer.


In this new context, we realize that a global hiring phenomenon is taking place worldwide, forcing Human Resources professionals (and companies) to be more creative when it comes to talent acquisition. This goes beyond improving job offers not only in terms of compensation but also in terms of benefits, training paths, flexibility, equipment, and many other aspects that we now call "emotional salary" and will address later.


The profile of HR professionals has changed from being a staff function to a strategic role within the organization, assuming a guiding and leadership role, focusing on helping employees achieve their goals, be happier, and find fulfillment through their daily work.


Listening to what employees ask for—and often achieve—more freedom to work anytime and anywhere, as well as greater attention to their well-being, has allowed us at Arkho to create a better working environment and, as a result, experience lower employee turnover.


"Organizations with happier people are more productive, more profitable, attract better talent, retain talent better, and are more ethical." - Javier Irarrazaval A., President of Trabajo con Sentido and Speaker on organizational happiness.


We understand that the new generations have been transforming the work culture to achieve a balance between work and personal life, and that is what we prioritize at ARKHO, always focusing on our values (Transparency, Communication, Teamwork, Responsibility and Commitment, Leadership).


What is emotional salary?


It refers to the set of non-monetary benefits. It includes everything that is not reflected in your salary statement but contributes to your experience within a company, such as leadership, career development, autonomy, flexibility, onboarding, understanding the company's strategy and how it aligns with your purpose. Constant communication, the ability to be creative, and more.


For the new generations, emotional salary has become highly important. Given the technology industry we are immersed in as experts in data analytics and AWS partners, this is precisely our target audience. That is why, within our Talent Management department at ARKHO, we develop strategies to attract specific IT profiles, such as Data Engineers and Cloud Developers with expertise in AWS cloud technologies.


Emotional salary is directly connected to the tangible and intangible benefits offered by a company. Therefore, when we think about benefits, they must align with the organization's culture and generate value for our employees. The impact of implementing a "school kit" benefit will not be the same for an employee with children as it would be for someone without children. Therefore, benefits must be diverse to accommodate everyone.



Why is emotional salary important?


Emotional salary brings an organization's culture to life and is key to the employee journey, which encompasses everything an employee experiences within the company, from the selection process to their last day.


Everything that archers (our term for employees) experience during their time at ARKHO influences them and the company, either positively or negatively. Emotional salary is crucial because it directly impacts the employee's quality of life, increases their productivity, and enhances their sense of belonging.


To implement emotional salary at ARKHO, we first had to learn what attracted, motivated, and retained our archers. And believe me, this is not something you learn overnight! It involves getting involved, understanding, and committing to each employee. It also requires studying and staying updated on the latest trends in the IT market. We continuously verify these aspects through surveys, one-on-one meetings, team discussions, and other means.


According to the market, the most valued benefits for this generation are related to flexibility, remote work, training, and health. Close leadership models, where employees can express their ideas without fear, are also highly valued. Today's young people were born in a technology-driven world where they can interact with others, and they want the same in their jobs—to be able to speak up and be heard freely.


All these variables contribute to an organization's culture, and ultimately, they shape what ARKHO is like and attract those who align and fit well with this culture, making them want to stay and give their best.



Glossary:

  • What is "The Great Resignation"? It is a phenomenon that started in early 2021 in the United States, where thousands of people voluntarily quit their permanent jobs to seek better opportunities. This movement was coined "The Great Resignation" by Anthony Klotz, an American academic and professor at Texas A&M University.

  • Employee Journey: The employee's experience from the moment they join the company until their departure.

  • Onboarding: The phase where employees immerse themselves in the culture, learn, and begin to embrace the company's DNA.

Within our Talent Management department, we are continuously working to strengthen the emotional salary at our company, for the well-being of all our archers and to attract, develop, and retain the best personnel.


Some of our most valued benefits include home office, which we adopted during the pandemic and has now become a common practice. We have noticed that it improves the quality of life for our archers by eliminating commuting time, and it also helps us take care of the environment. Now, the time we used to spend commuting can be used for studying, training, or doing whatever we want!


Another benefit that has had a significant impact is the "week off" or an extra week of annual leave, allowing our employees to enjoy more free time with their families or however they wish. Personally, I believe that listening to our archers, understanding their concerns and motivations, allows me to connect with them on a deeper level.


Last but not least, enjoying work is crucial for us. Having fun while working is essential to achieving our daily goals. At ARKHO, we understand that work is our passion, and we want to integrate it into our personal lives rather than adapting our personal lives to work.


If you are passionate about data and want to be part of a diverse, fun, and daring organization, ARKHO is the place for you! I invite you to apply for our open positions at GOB or send your CV to rrhh@arkho.io.

We look forward to hearing from you!


References:


The reinvention of corporate culture (International hiring trends for 2022, LinkedIn Talent Solutions)

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