This is a preprint of a book chapter to be published in Contemporary Issues in Entrepreneurship Research. Social
and Sustainable Enterprise: Changing the Nature of Business (Eds. Underwood, S., Blundel, R., Lyon, F. and
Schaefer, A.). 2012. Vidal Salazar, M.D., Cordón Pozo, E., Ferrón Vilchez, V.
Volume 2. Pages: 141-166. Emerald Books ©. ISBN: 978-1-78190-254-7.
DOI: 10.1108/s2040-7246(2012)0000002011
1
Are companies maintaining social benefits in
constrained economic times?
María Dolores Vidal-Salazar1 University of Granada
Vera Ferrón-Vilchez2
University of Granada
Eulogio Cordón-Pozo3
University of Granada
1 Department of Management. Economics and Business School. University of Granada. Campus Cartuja S/N, 18071, Granada (Spain). Phone: (0034) 958 241 000 Ext. 20171. Fax: (0034) 958 246 222. E-mail: [email protected] 2 Corresponding Author. Department of Management. Economics and Business School. University of Granada. Campus Cartuja S/N, 18071, Granada (Spain). Phone: (0034) 958 249 596. Fax: (0034) 958 246 222. E-mail: [email protected] 3 Department of Management. Economics and Business School. University of Granada. Campus Cartuja S/N, 18071, Granada (Spain). Phone: (0034) 958 242 341. Fax: (0034) 958 246 222. E-mail: [email protected]
This is a preprint of a book chapter to be published in Contemporary Issues in Entrepreneurship Research. Social
and Sustainable Enterprise: Changing the Nature of Business (Eds. Underwood, S., Blundel, R., Lyon, F. and
Schaefer, A.). 2012. Vidal Salazar, M.D., Cordón Pozo, E., Ferrón Vilchez, V.
Volume 2. Pages: 141-166. Emerald Books ©. ISBN: 978-1-78190-254-7.
DOI: 10.1108/s2040-7246(2012)0000002011
2
Are companies maintaining social benefits in constrained economic
times?
Abstract
1- Purpose: Is the current economic crisis affecting the quality of working
conditions within organisations? More specifically, due to constrained economic
times, are organisations reducing the social benefits they offer to employees? This
study analyses whether the current situation of economic downturn influences
companies’ maintenance of social benefits. Social benefits are those remunerations
in kind voluntarily offered by an employer beyond what is established in labour
laws and collective agreements
2- Design/Methodology/Approach: In doing so, this study conducts an
analysis of the evolution of social benefits in sample of 171 employees, comparing
the situation before and during the economic crisis.
3- Findings: Results showed that, in general, social benefits offered by
companies to their workers have been reduced due to economic recession.
4- Originality/value of the paper: Understanding the topic addressed in
this work is interesting for scholars, regulators, and practitioners because the
diminishing of social benefits due to the economic constraints could be able to
yield negative consequences for the employees’ involvement with the firm and its
subsequent negative impact in the business performance.
5- Practical/Social implications: This work contributes demonstrating the
need of paying greater attention to indirect remuneration. This issue is intimately
related to the Internal Corporate Social Responsibility of the company.
Keywords: Social benefits, remunerations in kind, economic crisis, social
security systems.
This is a preprint of a book chapter to be published in Contemporary Issues in Entrepreneurship Research. Social
and Sustainable Enterprise: Changing the Nature of Business (Eds. Underwood, S., Blundel, R., Lyon, F. and
Schaefer, A.). 2012. Vidal Salazar, M.D., Cordón Pozo, E., Ferrón Vilchez, V.
Volume 2. Pages: 141-166. Emerald Books ©. ISBN: 978-1-78190-254-7.
DOI: 10.1108/s2040-7246(2012)0000002011
3
Are companies maintaining social benefits in constrained economic
times?
1. Introduction
At the height of an economic recession many companies are applying more
conservative policies and are focusing their management on savings. Budget cuts,
implemented to reduce costs, are affecting the management of human resources
departments, which are modifying compensation policies. Compensation design is
a tool that allows the company to adapt itself to diverse situations and employee
needs (Lawler, 1990); therefore, it is a very effective way to control and encourage
employee behaviours. For these reasons, many organisations develop
compensation systems to promote employee behaviour that enables the
organisation to reach its objectives (Valle-Cabrera, 2003). One common type of
compensation used to increase motivation, keep talent in the enterprise, and
improve workers’ productivity entails complementing direct remuneration with
remuneration in kind, consisting of a whole range of social benefits. Social benefits
are defined as those remunerations in kind voluntarily offered by an employer
beyond what is established in labour laws and collective agreements (Pardo and
Luna, 2007). Note that the compensation system in any company expresses how
the organisation operates; that is to say, a company’s salary policies and social
benefits reflect the values that form its idiosyncrasies.
This chapter aims to examine (a) the importance that workers place on
social benefits and (b) whether companies are modifying their attitudes with
respect to such benefits because they do not consider this type of compensation to
be essential in periods of recession. This study attempts to answer the following
question: Is the current economic crisis affecting the social benefits that companies
offer to their employees?
This is a preprint of a book chapter to be published in Contemporary Issues in Entrepreneurship Research. Social
and Sustainable Enterprise: Changing the Nature of Business (Eds. Underwood, S., Blundel, R., Lyon, F. and
Schaefer, A.). 2012. Vidal Salazar, M.D., Cordón Pozo, E., Ferrón Vilchez, V.
Volume 2. Pages: 141-166. Emerald Books ©. ISBN: 978-1-78190-254-7.
DOI: 10.1108/s2040-7246(2012)0000002011
4
Understanding the idea addressed in this work is interesting for scholars,
regulators, and practitioners for two main reasons. First, the prior literature puts
forward the possibility that the achievement of employees’ satisfaction and
motivation correlates with the existence of social benefits within companies. As a
result, the diminishing of these social benefits due to economic constraints could
yield negative consequences for the employees’ involvement with the firm and
bear a subsequent negative impact on business performance. Second, on the basis
of improving voluntary social policies, firms could differentiate themselves from
competitors, moving from a situation based on the idea of postponing social
objectives of the firm as a consequence of the economic crisis to a situation based
on trying to overcome the economic downturn, basing efforts on obtaining benefits
from the achievements of a motivated and satisfied workforce.
Consequently two questions emerge related to two topics: non-monetary
compensation policies developed by companies, and workers’ evaluation of such
compensation. With regard to the first aspect, what are the social benefits
commonly offered by companies to their employees? The answers lie in an analysis
of social benefits more often offered by companies according to several factors:
size (i.e. number of employees) and ownership (public institutions versus private
companies). As for the second aspect, which social benefits are more important
(i.e. best valued) to employees? This chapter attempts to answer this question by
classifying respondents according to certain social and demographic
characteristics (e.g., gender, education level). All this information enables the
creation of a wide ‘portrait’ of the importance that workers ascribe to this type of
compensation and, likewise, to show how the application of social benefits has
varied due to the effects the economic crisis has had on companies in the concrete
Spanish case.
The chapter starts by exploring the concept of social benefits. Then we
discuss the influence of diverse legislations from several countries on the
establishment of such benefits (in many cases, they are a social safety net, given
that minimum mandatory benefits are established in some countries’ legislation).
Finally, we provide a descriptive study of the Spanish case, by analysing how the
economic crisis has influenced the social benefits companies offer to their workers.
This is a preprint of a book chapter to be published in Contemporary Issues in Entrepreneurship Research. Social
and Sustainable Enterprise: Changing the Nature of Business (Eds. Underwood, S., Blundel, R., Lyon, F. and
Schaefer, A.). 2012. Vidal Salazar, M.D., Cordón Pozo, E., Ferrón Vilchez, V.
Volume 2. Pages: 141-166. Emerald Books ©. ISBN: 978-1-78190-254-7.
DOI: 10.1108/s2040-7246(2012)0000002011
5
In doing so, this research presents an analysis of the evolution of social benefits
through a sample of 171 employees that compares the situation before and during
the economic crisis.
2. Theoretical review: Main remunerations in kind
The importance of remuneration for organisations’ efficiency is determined
not only by its impact on business costs (Milkovich and Newman, 2007) but also
because the manner of rewarding employees is an element of motivation with
considerable influence on employees’ behaviour in terms of their tasks within the
organisation (García-Tenorio and Sabater, 2004). Although the human resources
literature generally accepts that the manner of remunerating personnel influences
organisational results in a direct way (e.g., Gómez-Mejía and Sánchez, 2006), there
are diverse opinions about the most effective compensation design (Gerhart and
Rynes, 2003).
Following Goméz-Mejía, Berrone and Franco-Santos (2010), total
compensation received by an employee for his work comprises three components:
fixed remuneration (i.e. salary regularly received), variable remuneration (i.e. that
part that a worker earns depending on his performance), and social benefits.
Another usual classification differentiates between direct remuneration,
constituted by monetary rewards received by employees according to their level of
performance or the knowledge and abilities related to the occupied position (i.e.
base salary plus incentives), and indirect remuneration (i.e. social benefits),
constituted by those rewards received by employees through protection programs
and services in which the company, instead of giving a direct payment to the
employee, assumes determined social expenses (protection, well-being, security,
leisure, etc.).
Thus, social benefits are defined as those services paid for or provided by a
company to its employees that do not imply a salary increase but do imply an
improvement in work conditions (Pardo and Luna, 2007). The employee receives
these benefits for being part of the company; indeed, the employee’s family may be
also beneficiaries. Social benefits are strongly related to the social responsibility of
This is a preprint of a book chapter to be published in Contemporary Issues in Entrepreneurship Research. Social
and Sustainable Enterprise: Changing the Nature of Business (Eds. Underwood, S., Blundel, R., Lyon, F. and
Schaefer, A.). 2012. Vidal Salazar, M.D., Cordón Pozo, E., Ferrón Vilchez, V.
Volume 2. Pages: 141-166. Emerald Books ©. ISBN: 978-1-78190-254-7.
DOI: 10.1108/s2040-7246(2012)0000002011
6
business. According to prior literature (e.g., Miceli and Lane, 1991; Milkovich and
Newman, 2007; Patricio-Jiménez, 2009; Gomez Mejia et al, 2010), the origin and
development of social benefits are due to diverse causes that can be summarised
as follows:
1. Importance of attraction and retention of talent.
2. Increasing staff motivation
3. Demands from trade unions and collective agreements.
4. Other demands from labour law.
5. Way for companies to achieve tax deductions.
6. Wish to contribute to the well-being of employees and the entire
community.
There is much literature concerning these issues (e.g. Gómez-Mejía et al.,
2010), especially referring to the effects of different remuneration systems on
managers. However, more research for studying the effects of the diverse
components of remuneration in kind on the behaviour of non-management staff is
still necessary. Despite the increase of this type of remuneration, prior studies
highlight that employees do not always value the offered benefits since, in many
cases, they do not know the value of the benefits programs that the company offers
them (Dolan, 2003). For that reason, organisations must obtain direct and truthful
information about employees’ preferences and adapt social benefits programs to
their needs. Increasing communication between managers and employee
participation in the design and choice of these benefits are factors that may
increase the company’s chances of obtaining greater performance.
It is very difficult to make a comprehensive classification of social benefits,
since the only limit for developing and implementing new manners of payment is
the imagination and creativity of those responsible for putting them into practice.
Therefore, each organisation offers a benefits plan according to its own criteria,
based on diverse needs. First, in most organisations, social benefits policy has been
decided unilaterally by managers, given that employees’ demands are usually
related to direct remuneration (i.e. salary increases). Nonetheless, this tendency is
changing, above all in large companies, and the need to implement flexible benefits
This is a preprint of a book chapter to be published in Contemporary Issues in Entrepreneurship Research. Social
and Sustainable Enterprise: Changing the Nature of Business (Eds. Underwood, S., Blundel, R., Lyon, F. and
Schaefer, A.). 2012. Vidal Salazar, M.D., Cordón Pozo, E., Ferrón Vilchez, V.
Volume 2. Pages: 141-166. Emerald Books ©. ISBN: 978-1-78190-254-7.
DOI: 10.1108/s2040-7246(2012)0000002011
7
plans is being considered, that is, plans are more often being chosen ‘à la carte’4.
Second, the companies offering social benefits to their employees operate in
different ways by defining one or more social benefits packages. For instance,
although some companies prefer a general and equitable plan for all staff and
without any distinction because of professional standing, other companies divide
their personnel into several levels and offer differentiated plans for each of these
levels. This situation is still more complex if it is considered that the same benefit
can be applied in a different way depending on the company. Finally, note that
benefits can vary considerably in accordance with: (1) the economic circumstances
of each organisation, (2) economic context of each area where the company is
located, and (3) application of social legislation in each country and/or activity.
Even so, some authors have made an effort to classify the current offer of
social benefits in organisations because of numerous existent possibilities. For
example, Pardo and Luna (2007) indicated the existence of benefits related to five
categories: health, job position and well-being, training and information, economic
security, and leisure and free time; other social benefits not considered in previous
categories. Table 1 shows several examples according to this classification.
Table 1. Social benefits classification TYPES OF BENEFITS EXAMPLES
RELATED TO HEALTH BENEFITS Medical insurance, life and/or accident insurances, dental
care plan, extended parental leave.
JOB POSITION AND WELL-BEING
BENEFITS
Flexible work hours, car provided by company, mobile
phone, laptop, nursery, canteen, car park, gym, break room,
work clothes and tools…
TRAINING AND INFORMATION
BENEFITS
Employee training expenses, school expenses, grants,
specialised magazines…
ECONOMIC SECURITY BENEFITS
Pension plans, salary advances, loans with no interest,
housing purchase allowances, stocks options, discounts on
company’s products…
LEISURE AND FREE TIME BENEFITS
Trips paid by company, paid personal days, cultural
activities, sport activities, leaves…
OTHER BENEFITS Discounts on insurances, mortgages, loans, luncheon
vouchers, gifts, legal and/or financial assistance…
Source: Own elaboration from Pardo and Luna (2007).
4 Flexible benefits plans attempt to offer employees the possibility of choosing among a wide range of social benefits offered by the company, requesting those in which employees are really interested according to their needs.
This is a preprint of a book chapter to be published in Contemporary Issues in Entrepreneurship Research. Social
and Sustainable Enterprise: Changing the Nature of Business (Eds. Underwood, S., Blundel, R., Lyon, F. and
Schaefer, A.). 2012. Vidal Salazar, M.D., Cordón Pozo, E., Ferrón Vilchez, V.
Volume 2. Pages: 141-166. Emerald Books ©. ISBN: 978-1-78190-254-7.
DOI: 10.1108/s2040-7246(2012)0000002011
8
The importance of the existence of social benefits offered by companies to
their workers can be seen through some studies evaluating the best companies to
work for by means of diverse well-known rankings. For instance, in 2011, social
benefits were a key element when evaluating the best companies to work for
according to Fortune magazine (Fortune, 2012). Until a few years ago, direct
remuneration was considered a fundamental factor in the evaluation of a company;
however, the existence of social programs for employees is currently an essential
aspect. The following international companies exemplify this fact (Fortune, 2012):
• SAS: offers health benefits, nursery and childcare, and a good balance
between personal and professional life.
• Google: employees can use 20% of their work hours to undertake
any project that they wish.
• Qualcomm: promotes numerous leisure activities for staff such as
baseball games, surf classes, kayak and rafting tours, etc.
• Cisco, Adobe, and Salesforce.com: offer large nursery services, pay
for six sabbatical weeks, and offer other non-monetary benefits.
• Sodexho Pass: allows variable starting and ending work hours at the
office and offers luncheon vouchers, nursery, language and computer training,
and private health insurance.
• Microsoft Iberica: has mobility and teleworking programs for all
employees, offers choice of work hours (in agreement with supervisors), and
the chance to ask for a leave because of personal reasons, prohibits meetings
after 6.30 p.m., and provides access to company applications/software from
home.
• Indra: offers flexible work hours, paid leave for urgent personal
reasons, and significant opportunities for teleworking.
In Spain, the Great Place to Work Institute has elaborated an index of the 50
best companies to work for, whose common denominator is that 67% of their
employees state they have a body of personalised social benefits not found at other
companies (Great Place to Work, 2012). These data are based on a report that
collected the opinions of 15,000 employees, wherein a comparison was made
This is a preprint of a book chapter to be published in Contemporary Issues in Entrepreneurship Research. Social
and Sustainable Enterprise: Changing the Nature of Business (Eds. Underwood, S., Blundel, R., Lyon, F. and
Schaefer, A.). 2012. Vidal Salazar, M.D., Cordón Pozo, E., Ferrón Vilchez, V.
Volume 2. Pages: 141-166. Emerald Books ©. ISBN: 978-1-78190-254-7.
DOI: 10.1108/s2040-7246(2012)0000002011
9
between 7,500 employees working for companies considered to be among the best
companies to work for in Spain and another 7,500 workers from other companies
(not considered the best to work for).
Consequently, the aim of this chapter is threefold. First, although there is
much literature on compensation, following the classification proposed by Gomez
Mejia et al. (2010) on direct and indirect compensation, most studies have focused
on direct monetary compensation (base salary and plus incentives), but there are
very few studies that focus on analyzing the indirect remuneration. Thus, the first
objective of this work is to shed more light on this concept and its components,
that is, the social benefits that companies offer to employees and their families.
Second, likewise the literature on compensation has focused largely on the upper
levels of the organization, evaluating reward systems that apply to managers,
while less work has been done about pay systems for non-management employees
(Gomez -Mejia et al., 2010). This point is especially relevant because most of the
salary costs are concentrated in non-managerial levels as these levels are much
more numerous. Thus, the impact of wage changes at these levels has a direct
effect on corporate profitability, justifying their need for in-depth study. Finally,
given the current international economic recession, the third aim of this work is to
analyse how the crisis is affecting this type of indirect remuneration. The focus on
saving and more conservative expense policies at companies are affecting human
resources departments, which are modifying both direct and indirect
remuneration policies. For instance, a recent study by Deloitte on salary payments
in Spain in 2011 estimated that salary increases in 2012 will not exceed 2.5%, a
lower percentage than expected inflation. Moreover, the study estimated that 10%
of companies would freeze salaries. This freezing can suggest that employees
attach more importance to the existence of social benefits in their companies.
Hence, it is especially relevant to know what the companies’ stance is
during this period of budget austerity. A more conservative attitude could indicate
that companies consider the decrease of income (and/or profit) to be a hindrance
to the maintenance of social benefits, so they only focus on maintaining the level of
salaries because it is considered an inalienable right. In contrast, another
perspective considers that, given the current uncertainty, it is impossible to
This is a preprint of a book chapter to be published in Contemporary Issues in Entrepreneurship Research. Social
and Sustainable Enterprise: Changing the Nature of Business (Eds. Underwood, S., Blundel, R., Lyon, F. and
Schaefer, A.). 2012. Vidal Salazar, M.D., Cordón Pozo, E., Ferrón Vilchez, V.
Volume 2. Pages: 141-166. Emerald Books ©. ISBN: 978-1-78190-254-7.
DOI: 10.1108/s2040-7246(2012)0000002011
10
maintain the level of salaries; therefore, it is necessary to turn to other human
resources management tools such as social benefits. Companies following this
approach are boosting social benefits packages in order to compensate for salary
freezes and reduction, since such organisations consider social benefits to be a
potential way to motivate and satisfy employees, as well as guaranteeing that the
best employees stay with the company.
3. International overview of social benefits
3.1. Social security systems
When considering the social benefits companies offer to their employees, it
is important to bear in mind that there is no international legal homogeneity on
social security issues, with each country having its own regulations in this matter.
This fact is highly relevant when evaluating the social benefits that companies offer
to their employees, since such benefits are usually supplementary advantages
beyond basic welfare coverage, which states, through their regulations, oblige
enterprises to grant. Even in countries where welfare coverage is quite limited, the
social benefits that companies offer to their employees are basic requirements for
labour security and stability. For instance, health coverage in the United States,
where medical insurance must be paid by each citizen, is completely different from
health coverage in Europe, because most of the social security systems in the
European Union countries offer universal and complete medical protection to the
entire population. Therefore, health coverage (as a social benefit offered by
companies) will be much more appreciated in countries whose regulations do not
demand such a benefit than in those in which health coverage is widely offered or
complete. Thus, the starting point to evaluate the importance of social benefits
offered by companies must be based on the comparison of social security
programs established in each country. According to the International Social
This is a preprint of a book chapter to be published in Contemporary Issues in Entrepreneurship Research. Social
and Sustainable Enterprise: Changing the Nature of Business (Eds. Underwood, S., Blundel, R., Lyon, F. and
Schaefer, A.). 2012. Vidal Salazar, M.D., Cordón Pozo, E., Ferrón Vilchez, V.
Volume 2. Pages: 141-166. Emerald Books ©. ISBN: 978-1-78190-254-7.
DOI: 10.1108/s2040-7246(2012)0000002011
11
Security Association5 (ISSA), an organisation under the authority of the
International Labour Organization (ILO), social security systems are defined as any
programme of social protection established by legislation, or any other mandatory
arrangement, that provides individuals with a degree of income security when
faced with the contingencies of old age, survivorship, incapacity, disability,
unemployment, or rearing children (ISSA, 2012). It may also offer access to
curative or preventive medical care.
The first social security systems arrived in Europe at the end of the
nineteenth century. However, these systems reached their greatest development
throughout the twentieth century because of decolonisation and the appearance of
new independent states after World War II (ISSA, 2012), and finally became a
fundamental human right (articles from 22 to 25) in the Universal Declaration of
Human Rights in 1948 (Universal Declaration of Human Right, 1948).
The latest advances in the social security legislation of each country were
gathered in the Seoul Declaration on Safety and Health at Work, which took place
on 29 June 2008 (Seoul Declaration, 2008). Currently, legislation in countries with
social security systems includes benefits programs for retirement, labour
accidents, occupational diseases, maternity, disease, family allowances, and
unemployment. Nevertheless, according to ISSA estimations, ‘around 50 per cent of
the global population has access to some form of social security, while only 20 per
cent enjoy adequate social security coverage’ (ISSA, 2012). In other words, any
social benefit may be included—in a coercive way—in the labour regulations of a
particular country (e.g. maternity leave), whereas social security laws in other
countries may be more or less demanding with terms, conditions, and other
aspects (e.g. number of weeks established for maternity leave), or may not even
consider such a contingency6.
3.2. How the economic crisis is affecting worldwide social security systems
5 The ISSA is the principal international institution bringing together social security agencies and organisations. It provides access to information, expert advice, business standards, practical guidelines, and platforms for members to build and promote dynamic social security systems worldwide (www.issa.int). 6 The ISSA offers information about the diverse national profiles to facilitate international comparison.
This is a preprint of a book chapter to be published in Contemporary Issues in Entrepreneurship Research. Social
and Sustainable Enterprise: Changing the Nature of Business (Eds. Underwood, S., Blundel, R., Lyon, F. and
Schaefer, A.). 2012. Vidal Salazar, M.D., Cordón Pozo, E., Ferrón Vilchez, V.
Volume 2. Pages: 141-166. Emerald Books ©. ISBN: 978-1-78190-254-7.
DOI: 10.1108/s2040-7246(2012)0000002011
12
The impact of the current worldwide economic recession is generating
some negative effects for working conditions in general and, particularly, for social
security systems. For example, according to the ISSA (2012), some of the
pernicious effects may be:
• a higher frequency of labour accidents because of the increasing
intensity and pressure at work;
• perception of job instability; this implies a direct impact on workers’
health and well-being;
• potential reduction of investment in preventive measures by
employers, given the difficult circumstances of the labour market.
This last point is especially important for the analysis of the evolution of
social benefits offered by companies to their employees. In the last few years, the
international economic context has plunged into a serious recession, forcing
companies to focus on cost reduction at the expense of other corporative
objectives such as the expansion and improvement of social benefits for workers.
Moreover, given the circumstances, governments are allowing companies to freeze
(and even diminish) both ordinary salaries and the offer of public benefits related
to social security systems. With reference to ordinary salaries, in 2010, the Spanish
government implemented an austerity plan that reduced civil servants’ wages by
five per cent and froze pensions, along with other budget cuts in the field of labour
security (Francis, 2010). With reference to cuts in social security government
programs, the German system, one of the oldest (established in 1883) and with the
greatest reach (includes prescription medications, prevention holidays, one year of
total unemployment insurance, and home allowances for the unemployed, among
other measures), is also being modified to the detriment of the offer of social
services to citizens (Francis, 2010). The ‘Hartz IV’ plan has cut several public
benefits, including some limitations for unemployment insurance and the
implementation of strict controls on German health costs (Francis, 2010).
Therefore, given the economic recession and the austerity situation with
respect to the public financing of social benefits, it is especially relevant to analyse
whether companies have reduced, maintained, or improved (as a motivation
measure for their workers) the offer of social benefits, as well as to study how
This is a preprint of a book chapter to be published in Contemporary Issues in Entrepreneurship Research. Social
and Sustainable Enterprise: Changing the Nature of Business (Eds. Underwood, S., Blundel, R., Lyon, F. and
Schaefer, A.). 2012. Vidal Salazar, M.D., Cordón Pozo, E., Ferrón Vilchez, V.
Volume 2. Pages: 141-166. Emerald Books ©. ISBN: 978-1-78190-254-7.
DOI: 10.1108/s2040-7246(2012)0000002011
13
much employees value the social benefits offered by their companies, given the
public cuts in social security systems.
4. Methodology
In order to evaluate Spanish companies’ behaviours with regard to offering
social benefits and to analyse employee perceptions of this type of remuneration, a
questionnaire was developed, which was administered to employees from diverse
companies operating in Spain (see Appendix 1). The questionnaire was sent by
mail during December 2011 and responses were compiled during January 2012.
Overall, 600 surveys were sent out and 171 completed surveys were received. The
response rate was 28.5%.
The questionnaire asked respondents about their perceptions on how social
benefits offered in their companies had changed, by comparing the situation
‘before the economic crisis’ with the current context. Items related to social
benefits were 45 initiatives classified into six main areas: health, job position and
well-being, training and information, economic security, leisure and free time, and
other social benefits. Table 2 shows data for describing the general profile of
respondents.
Table 2. Profile of respondents Gender
Men
Women
47.1%
52.9%
Education level
Doctoral degree
Master degree
Bachelor degree
High School graduate
Less than High School
4.1%
28.7%
32.7%
31.0%
3.5%-
Type of business
Private
Public
52.4%
47.6%
Company size (employees)
< 10
From 10 to 49
From 50 to 249
>250
12.4%
27.1%
10.0%
50.6%
This is a preprint of a book chapter to be published in Contemporary Issues in Entrepreneurship Research. Social
and Sustainable Enterprise: Changing the Nature of Business (Eds. Underwood, S., Blundel, R., Lyon, F. and
Schaefer, A.). 2012. Vidal Salazar, M.D., Cordón Pozo, E., Ferrón Vilchez, V.
Volume 2. Pages: 141-166. Emerald Books ©. ISBN: 978-1-78190-254-7.
DOI: 10.1108/s2040-7246(2012)0000002011
14
Table 2 shows that the sample is balanced in relation to sex of respondents
and type of business, including individuals with different education levels in
organizations with different sizes (number of employees).
5. Results
5.1. Social benefits in Spain before the crisis and currently
All the items related to social benefits instructed respondents to ‘mark the
level of this social benefit in your company before and during the economic crisis’.
The respondents could answer: (1) this social benefit does not exist in the
company, (2) this social benefit barely exists, (3) this social benefit exists at a
satisfactory level, (4) this social benefit exists and its coverage is broad, and (5)
this social benefit exists and its coverage is very broad. In order to summarize
results, items were aggregated in two groups: ‘this social benefit does not exist in
the company’ (for those respondents who coded 1) and ‘this social benefit exists in
the company’ (for those respondents who coded from 2 to 5). Table 3 displays that,
before the economic recession, social benefits offered by companies were, in
general, diverse; however, those related to job position and well-being were the
most widespread. Although social benefits related to job position and well-being
still have a strong presence, considerably fewer respondents indicated that their
companies offer the same benefit currently, when comparing results of the
situation before the economic crisis with the current context. For instance, 87.7%
of the respondents indicated that their companies offered leave for various
purposes before the economic recession, whereas this percentage in the current
situation (i.e. during the crisis) is reduced by 8 points (80.7%). This shows that the
economic crisis is strongly affecting this type of benefit within organisations.
This is a preprint of a book chapter to be published in Contemporary Issues in Entrepreneurship Research. Social
and Sustainable Enterprise: Changing the Nature of Business (Eds. Underwood, S., Blundel, R., Lyon, F. and
Schaefer, A.). 2012. Vidal Salazar, M.D., Cordón Pozo, E., Ferrón Vilchez, V.
Volume 2. Pages: 141-166. Emerald Books ©. ISBN: 978-1-78190-254-7.
DOI: 10.1108/s2040-7246(2012)0000002011
15
Table 3. 15 social benefits offered on a broader scale before and during the
crisis
Social Benefits before crisis % Social Benefits during crisis %
1 Leaves (exams, process of moving, visits to
the doctor) 87.7
Leaves (exams, process of moving,
visits to the doctor) 80.7
2 Training expenses for employees 84.2 Extended parental leave
(accumulation of period of lactation) 77.2
3 Extended parental leave (accumulation of
period of lactation) 83.0 Training expenses for employees 76.6
4 Periodic medical check-ups 81.9 Periodic medical check-ups 74.9
5 Salary advances or loans with no interest 72.5 Laptop provided by company and
Internet access 66.1
6 Laptop provided by company and Internet
access 67.8
Salary advances or loans with no
interest 64.9
7 Flexible work hours 58.5 Flexible work hours 57.3
8 Work clothes and Tools 56.7 Work clothes and tools 55.6
9 Rewards (by seniority, by accomplished
objectives, etc.) 55.6 Mobile provided by company 52.0
10 Paid personal days 55.6 Paid personal days 50.9
11 Life and/or accident insurance 53.2 Rewards (by seniority, by
accomplished objectives, etc.) 48.5
12 Mobile provided by company 53.2 Car park 47.4
13 Car park 50.3 Life and/or accident insurance 45.0
14 Discounts for employees on company’s
products or services 46.2
Discounts for employees on
company’s products or services 42.7
15 Gifts (Christmas presents, company
products) 46.2 School expenses for children 40.4
5.2. Private companies versus public companies
In order to analyse whether there are significant differences between
public-sector companies (i.e. companies owned by the state) and private-sector
companies with regard to effects of the economic crisis on social benefits offered to
employees, we have created an indicator summarising the economic recession’s
impact on the offer of social benefits in the prior mentioned six areas (see Table 1
and Appendix 1). This indicator was calculated as follows: the numerator is the
difference between the percentage of respondents indicating that their companies
continue to offer a particular social benefit during the economic crisis and the
percentage of respondents indicating that their companies offered a particular
social benefit before the economic crisis; the denominator is the number of social
benefits in each area. Table 4 shows the perceptions of respondents, differentiating
This is a preprint of a book chapter to be published in Contemporary Issues in Entrepreneurship Research. Social
and Sustainable Enterprise: Changing the Nature of Business (Eds. Underwood, S., Blundel, R., Lyon, F. and
Schaefer, A.). 2012. Vidal Salazar, M.D., Cordón Pozo, E., Ferrón Vilchez, V.
Volume 2. Pages: 141-166. Emerald Books ©. ISBN: 978-1-78190-254-7.
DOI: 10.1108/s2040-7246(2012)0000002011
16
between those that work in the public sector and those that work in the private
sector.
Table 4: Comparison of social benefits between private and public companies Private Companies Public Companies
Social Benefits Before
crisis
During
crisis Change
Indica
tor
Before
crisis
During
crisis Change
Indica
tor
BENEFITS RELATED TO HEALTH
Private medical insurance 34.8 31.5 -3.3
-3.1
28.1 21.9 -6.2
-8.2
Periodic medical check-ups 74.3 69.7 -4.6 89.1 78.1 -11
Life and/or accident
insurance 55.1 48.3 -6.8 51.6 40.6 -11
Medicine expenses 16.9 14.6 -2.3 34.4 29.7 -4.7
Dental care expenses
(employee and/or family) 14.6 14.6 0.0 76.6 68.8 -7.8
Eye care expenses
(employees and/or family) 11.2 11.2 0.0 81.3 71.9 -9.4
Extended parental leave
(accumulation of period of
lactation)
71.9 65.2 -6.7 98.4 90.6 -7.8
Psychological treatments
(stress) 13.5 11.2 -2.3 51.6 40.6 -11
Treatments to give up
smoking 7.9 5.6 -2.3 39.1 34.4 -4.7
JOB POSITION AND WELL-BEING BENEFITS
Flexible work hours 61.8 62.9 1.1
-1.0
56.3 53.1 -3.2
-2.0
Company canteen 40.4 38.2 -2.2 20.3 18.8 -1.5
Car provided by company 49.4 47.2 -2.2 18.8 17.2 -1.6
Mobile provided by
company 67.4 67.4 0.0 34.4 31.3 -3.1
Car park 49.4 47.2 -2.2 53.1 50.0 -3.1
Break room 41.6 38.2 -3.4 31.3 29.7 -1.6
Gymnasium 3.4 2.2 -1.2 3.1 3.1 0.0
Nursery 7.9 7.9 0.0 7.8 7.8 0.0
Work clothes and tools 57.3 56.2 -1.1 64.1 62.5 -1.6
Laptop provided by
company and Internet
access
68.5 69.7 1.2 64.1 59.4 -4.7
TRAINING AND INFORMATION BENEFITS
Training expenses for
employees 79.8 76.4 -3.4
-1.7
89.1 76.6 -12.5
-6.0
Training expenses for
family members 12.4 12.4 0 17.2 15.6 -1.6
School expenses for
children 23.6 22.5 -1.1 68.8 60.9 -7.9
School transport expenses 6.7 6.7 0.0 21.9 21.9 0.0
Special grants for children
(university, stays abroad) 14.6 14.6 0.0 29.7 23.4 -6.3
Subscriptions to specialised
magazines or newspapers 21.3 15.7 -5.6 25.0 17.2 -7.8
ECONOMIC SECURITY BENEFITS
Pension plans 31.5 30.3 -1.2 -3.0 37.5 26.6 -10.9 -7.1
This is a preprint of a book chapter to be published in Contemporary Issues in Entrepreneurship Research. Social
and Sustainable Enterprise: Changing the Nature of Business (Eds. Underwood, S., Blundel, R., Lyon, F. and
Schaefer, A.). 2012. Vidal Salazar, M.D., Cordón Pozo, E., Ferrón Vilchez, V.
Volume 2. Pages: 141-166. Emerald Books ©. ISBN: 978-1-78190-254-7.
DOI: 10.1108/s2040-7246(2012)0000002011
17
Salary advances or loans
with no interest 65.2 60.7 -4.5 84.4 71.9 -12.5
Parental or adoption
complement 28.1 25.8 -2.3 32.8 28.1 -4.7
Accident or leave
complement 30.3 29.2 -1.1 37.5 31.3 -6.2
Grant for house purchase 16.9 14.6 -2.3 39.1 34.4 -4.7
Participation in company’s
profit 25.8 19.1 -6.7 15.6 9.4 -6.2
Remuneration in shares or
stock options 20.2 19.1 -1.1 10.9 7.8 -3.1
Discounts for employees on
company’s products or
services
65.2 61.8 -3.40 20.3 17.2 -3.1
Rewards (by seniority, by
accomplished objectives,
etc.)
52.8 48.3 -4.5 62.5 50.0 -12.5
LEISURE AND FREE-TIME BENEFITS
Cultural activities (cinema,
shows, and theatre tickets) 27.0 23.6 -3.4
-2.1
25.0 21.9 -3.1
-6.5
Trips paid by company 27.0 23.6 -3.4 23.4 20.3 -3.1
Paid personal days 41.6 40.4 -1.2 81.3 70.3 -11.0
Subsidised sport activities 15.7 15.7 0.0 37.5 31.3 -6.2
Leaves (exams, process of
moving, visits to the doctor) 80.9 75.3 -5.60 95.3 84.4 -10.9
Paid sabbatical year 3.4 4.5 1.1 7.8 3.1 -4.7
OTHER SOCIAL BENEFITS
Luncheon vouchers 25.8 23.6 -2.2
-4.8
7.8 6.3 -1.5
-1.5
Discounts on
insurance/mortgages and
loans/health insurance
policies/hotels/restaurants
23.6 23.6 0.0 25 21.9 -3.1
Work travel expenses 43.8 40.4 -3.4 10.9 10.9 0.0
Housing purchase
allowances 7.9 9.0 1.1 25 23.4 -1.6
Gifts (Christmas presents,
company products) 62.9 43.8 -19.1 15.6 7.8 -7.8
Financial and/or legal
assistance 28.1 23.6 -4.5 15.6 18.8 3.2
Predisposition to contract
children and/or couple 32.6 27.0 -5.6 6.3 6.3 0.0
As Table 4 shows, private-sector workers perceive, in general, a diminishing
in the offer of social benefits in all areas. More specifically, we can highlight the
diminishing of ‘Christmas presents’ (-19.1), ‘life and accident insurance’ (-6.8),
‘expanded maternity leave’ (-6.7), and ‘employee participation in the company’s
profit’ (-6.7). According to the indicator used, the most affected area of social
benefits reduction is ‘other social benefits’, followed by items ‘related to health
benefits’ and ‘economic security benefits’. However, there only seems to be a weak
This is a preprint of a book chapter to be published in Contemporary Issues in Entrepreneurship Research. Social
and Sustainable Enterprise: Changing the Nature of Business (Eds. Underwood, S., Blundel, R., Lyon, F. and
Schaefer, A.). 2012. Vidal Salazar, M.D., Cordón Pozo, E., Ferrón Vilchez, V.
Volume 2. Pages: 141-166. Emerald Books ©. ISBN: 978-1-78190-254-7.
DOI: 10.1108/s2040-7246(2012)0000002011
18
impact of the economic crisis on the offer of ‘job position and well-being benefits’
in the case of private-sector companies. In this area, it is observed that the
diminishing of the offer has been slight, in respondents’ perception, and the
evolution has even been positive in some cases. For example, there are increasing
offers of ‘flexible work hours’ and ‘laptop provided by company and Internet
access’. These results were expected to a certain extent. Spanish private
companies, highly affected by the economic recession, are notably reducing the
offer of social benefits to their employees. However, because of a quick loosening
of the labour context (e.g. flexibility in remuneration, contracting, function, and
work hours), social benefits related to flexible work hours or to work from home
have increased.
With respect to the results obtained in the case of public-sector workers,
there is a clear tendency for diminishing social benefits during the economic crisis,
as in the private sector. Values in the ‘change’ column are mostly negative;
nonetheless, the most significant is the greater reduction of social benefits, in
comparison with data from private companies. In other words, public-sector
companies are perceived to have reduced non-pay benefits more than private
companies. In the case of public-sector companies, substantial negative values are
seen in the areas related to health benefits (-8.2), economic security benefits (-7.1),
leisure and free time benefits (-7.1), and training and information benefits (-6.0).
Only the results in the area of job position and well-being benefits are similar to
those obtained for private companies.
Moreover, in order to check whether companies’ capital ownership (private
companies versus public companies) is a significant variable for the analysis of the
offer of social benefits before and during economic crisis, ‘the average social
benefits offered’ by both public companies and private companies was analysed
based on the collected sample. Table 5 shows that private companies offered a
lower average number of social benefits than public companies both before and
during the economic crisis.
This is a preprint of a book chapter to be published in Contemporary Issues in Entrepreneurship Research. Social
and Sustainable Enterprise: Changing the Nature of Business (Eds. Underwood, S., Blundel, R., Lyon, F. and
Schaefer, A.). 2012. Vidal Salazar, M.D., Cordón Pozo, E., Ferrón Vilchez, V.
Volume 2. Pages: 141-166. Emerald Books ©. ISBN: 978-1-78190-254-7.
DOI: 10.1108/s2040-7246(2012)0000002011
19
Table 5: Average social benefits according to ownership (public versus
private) Type of business
Private Public
Before crisis 16,62 (8,31) 18,86 (6,86)
Nowadays 15,40 (8,31) 16,46 (7,76)
Difference -1,21 (4,72) -2,39 (5,85)
Means; standard deviation in parentheses
Since ‘the average social benefits offered’ does not follow a normal
distribution, the different results between public companies and private
companies were contrasted using the Mann-Whitney U test. Table 6 shows the
results of this analysis. According to these results, although public companies
offered a higher number of social benefits than private organisations before the
economic crisis, and this difference was statistically significant, the current
recession has put the offer of both types of companies on the same level and,
currently, discrepancies are not statistically significant. This fact is easy to explain:
the economic recession caused public expense control measures to correct the
Spanish public deficit, which are strongly affecting the offer of social benefits by
public organisations. Thus, according to respondents’ opinions, the current
recession is causing a reduction in the offer of social benefits to public workers in a
more drastic manner than in private companies.
Table 6: Mann-Whitney U test Type of business
Private Public Asymp. Sig. (2-tailed)
Before crisis 73,62 81,7 Z = -2,313 (0,021)
Nowadays 69,98 86,76 Z = -1,113 (0,266)
Means were shown; statistical significance in
parentheses
5.3. Social benefits based on company size
With respect to possible effects because of company’s size, Table 7 shows
that the average of social benefits offered depends, to a large extent, on the number
of employees at the company. Table 7 shows results for the average of social
benefits offered by companies according to company size (i.e. number of
This is a preprint of a book chapter to be published in Contemporary Issues in Entrepreneurship Research. Social
and Sustainable Enterprise: Changing the Nature of Business (Eds. Underwood, S., Blundel, R., Lyon, F. and
Schaefer, A.). 2012. Vidal Salazar, M.D., Cordón Pozo, E., Ferrón Vilchez, V.
Volume 2. Pages: 141-166. Emerald Books ©. ISBN: 978-1-78190-254-7.
DOI: 10.1108/s2040-7246(2012)0000002011
20
employees). Likewise, in order to check whether there were statistically significant
differences, we used the Kruskal-Wallis non-parametric test, since there are more
than two groups. Table 8 shows the results of this test. Differences in the offer of
social benefits depending on company size are persistent during the economic
crisis.
Table 7: Average offered social benefits according to company size
Size (number of employees)
< 10 10 to 50 51 to 250 >250
Before crisis 11.67 (6.46) 18.52 (8.50) 14.94 (6.63) 18.94 (7.16)
Nowadays 9.86 (6.00) 16.32 (8.32) 14.41 (6.40) 17.28 (8.05)
Difference -1.8 (5.88) -2.2 (5.21) -0.52 (1.32) -1.66 (5.55)
Means; standar deviation in parentheses
Table 8: Kruskal-Wallis test Size (number of employees)
< 10 10 to-
50
51 to
250 >250 Asymp. Sig. (2-tailed)
Before crisis 45.10 88.20 68.44 97.30 Chi-Squared (3 df) = 21.321 (p<0.01)
Nowadays 44.90 87.47 75.76 83.12 Chi-Squared (3 df) = 19.191 (p<0.01)
Means were shown
5.4. Perception of importance of social benefits in Spanish companies
One of the research aims was to check whether companies’ offers of social
benefits are adequate for workers’ expectations, and to evaluate the relative
importance given by respondents to diverse social benefits. This was measured
through a five-point Likert scale, in which 1 represents minimum importance
while 5 represents maximum importance. Respondents were asked to ‘evaluate
the importance you give to each benefit, regardless of whether your company
offers it (or offered it before the economic crisis and does not offer it today)’. Table
9 shows the average value (in descending order) for the importance given by
respondents to each social benefit. By comparing the information in Table 3 with
the results of Table 9, it can be observed that, in general, the offer of social benefits
by companies is adjusted to the social benefits most valued by workers.
Nonetheless, there are certain social benefits that, despite being valued by
employees, are not offered by companies and do not appear in Table 3. For
This is a preprint of a book chapter to be published in Contemporary Issues in Entrepreneurship Research. Social
and Sustainable Enterprise: Changing the Nature of Business (Eds. Underwood, S., Blundel, R., Lyon, F. and
Schaefer, A.). 2012. Vidal Salazar, M.D., Cordón Pozo, E., Ferrón Vilchez, V.
Volume 2. Pages: 141-166. Emerald Books ©. ISBN: 978-1-78190-254-7.
DOI: 10.1108/s2040-7246(2012)0000002011
21
instance, pension plans, dental care expenses, and parental or adoption
complements are benefits well valued by employees, but not usually offered by
their companies.
Table 9: The 15 social benefits most valued by respondents
Social Benefits
Overall rating Order by sex
Area N Mean
Std.
Dev. Order Men
Wom
en
1 Eye care expenses 163 4.20 1.03 1 3 1 Health
2 Training expenses for employees 161 4.11 1.06 2 2 3 Training and
information
3 Flexible work hours 162 4.09 1.16 3 1 4 Job position and
well-being
4 Leaves 158 4.01 1.07 4 6 2 Leisure and free-
time
5 Periodic medical check-ups 165 3.99 0.97 5 4 5 Health
6 Life and/or accident insurance 161 3.82 1.19 6 5 11 Health
7 Rewards (by seniority, by
accomplished objectives) 158 3.76 1.29 7 8 7 Economic Security
8 Pension plans 157 3.75 1.19 8 7 10 Economic Security
9 Salary advances or loans with no
interest 157 3.75 1.06 9 9 8 Economic Security
10 Paid personal days 158 3.70 1.28 10 12 6 Leisure and free-
time
11 Laptop provided by company
and Internet access 162 3.67 1.36 11 11 9
Job position and
well-being
12 Parental or adoption
complement 158 3.63 1.22 12 13 12 Economic Security
13 Car park 161 3.58 1.43 13 10 13 Health
14 Extended parental leave 160 3.42 1.29 14 21 14 Health
15 Dental care expenses 162 3.41 1.28 15 17 15 Health
A high percentage of coincidence can be observed between genders,
although there are certain relevant differences. For example, the chance to have
life and/or accident insurance occupies the fifth position in the rank of benefits
most valued by men, whereas women do not consider it too relevant (eleventh
position). Furthermore, women give higher importance to leaves and personal
days. As a consequence, given that men and women can value social benefits
differently, every company must take into account such differences when
designing its offer of social benefits.
This is a preprint of a book chapter to be published in Contemporary Issues in Entrepreneurship Research. Social
and Sustainable Enterprise: Changing the Nature of Business (Eds. Underwood, S., Blundel, R., Lyon, F. and
Schaefer, A.). 2012. Vidal Salazar, M.D., Cordón Pozo, E., Ferrón Vilchez, V.
Volume 2. Pages: 141-166. Emerald Books ©. ISBN: 978-1-78190-254-7.
DOI: 10.1108/s2040-7246(2012)0000002011
22
6. Conclusion
This work is focused on the concept of social benefits, understanding as
those remunerations in kind voluntarily offered by an employer beyond what is
established in labour laws and collective agreements. We contribute to prior
literature in several ways. First, our findings demonstrate the need for companies
to pay greater attention to certain aspects of remuneration which, although not
contained in the base salary, greatly influence the assessment made by employees
on their own company. Social benefits are part of the concept of Internal Corporate
Social Responsibility (hereinafter, Internal CSR) of the company. Internal CSR is
defined as a part of the CSR focused on managing human resources in a social,
sustainable, ethical and caring way (e.g., Carneiro, 2008). According to this
concept, the retributive system adopted represents one of the most important
assets of the company. Thus, if a company is willing to apply Internal CSR, it will
have to pay special attention to the implementation of appropriate policies for the
professional and personal development of its employees (EC, 2001). The existence
of social benefits not only greatly improves working conditions but also the
personal conditions of employees, encouraging actively the reconciliation between
work and family life and providing access to certain products or services which are
difficult to access individually by employees. Therefore, this retributive instrument
is one of the elements to consider when companies decide to establish a plan of
Internal CSR.
Second, over the last few years the international business context has been
suffering a serious economic recession, which has resulted in several companies
being focused on cutting overall costs and neglecting other corporative objectives
such as social aims. This study analyses whether the current situation of economic
downturn influences the maintenance of social benefits by companies. With regard
to this analysis, on the one hand, the comparison between the situation before the
economic crisis and the current context shows that, in general, social benefits
offered by companies to their workers have been reduced. Moreover, this
reduction has been larger in public companies. This can be explained by the lower
number of social benefits already offered by private companies before economic
This is a preprint of a book chapter to be published in Contemporary Issues in Entrepreneurship Research. Social
and Sustainable Enterprise: Changing the Nature of Business (Eds. Underwood, S., Blundel, R., Lyon, F. and
Schaefer, A.). 2012. Vidal Salazar, M.D., Cordón Pozo, E., Ferrón Vilchez, V.
Volume 2. Pages: 141-166. Emerald Books ©. ISBN: 978-1-78190-254-7.
DOI: 10.1108/s2040-7246(2012)0000002011
23
crisis. Therefore, during the economic recession, the difference between the public
and private sectors has stopped being statistically significant. Nevertheless, note
that, in general, some aspects considered social benefits such as flexible work
hours, laptops provided by the organisation, and Internet access are being offered
to a large extent during the economic crisis, since companies are attempting to
have more flexible employees. On the other hand, the respondents considered, in
general terms, that social benefits received were adequate to meet their
expectations. Nonetheless, it would be appropriate to keep improving the
adaptation of the social benefits programs to staff needs, since some of the most
demanded benefits such as pension plans, work travel expenses, maternity
complements, housing purchase allowances, and nursery service are barely offered
in Spanish organisations. This adaptation to employees’ needs is particularly
important considering the differences in the preferences shown by men and
women, whose labour and family needs are partially different.
Finally, this work opens new research lines toward an in-depth analysis of
the essential role played by the inclusion of social benefits in the human resources
management of the company. For instance, future research could analyze the
impact of the existence of social benefits on organizational climate and labor
relations within the firm. Further, it could be also interesting to analyze whether
the commitment level of employees is related to the existence of social benefits
within the firm.
This is a preprint of a book chapter to be published in Contemporary Issues in Entrepreneurship Research. Social
and Sustainable Enterprise: Changing the Nature of Business (Eds. Underwood, S., Blundel, R., Lyon, F. and
Schaefer, A.). 2012. Vidal Salazar, M.D., Cordón Pozo, E., Ferrón Vilchez, V.
Volume 2. Pages: 141-166. Emerald Books ©. ISBN: 978-1-78190-254-7.
DOI: 10.1108/s2040-7246(2012)0000002011
24
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and Sustainable Enterprise: Changing the Nature of Business (Eds. Underwood, S., Blundel, R., Lyon, F. and
Schaefer, A.). 2012. Vidal Salazar, M.D., Cordón Pozo, E., Ferrón Vilchez, V.
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Schaefer, A.). 2012. Vidal Salazar, M.D., Cordón Pozo, E., Ferrón Vilchez, V.
Volume 2. Pages: 141-166. Emerald Books ©. ISBN: 978-1-78190-254-7.
DOI: 10.1108/s2040-7246(2012)0000002011
26
Appendix 1 Table A1: The 45 social benefits included in the questionnaire
TYPES OF BENEFITS
BENEFITS RELATED TO HEALTH
Private medical insurance
Periodic medical check-ups
Life and/or accident insurance
Medicine expenses
Dental care expenses (employee and/or family)
Eye care expenses (employees and/or family)
Extended parental leave (accumulation of period of lactation)
Psychological treatments (stress)
Treatments to give up smoking
JOB POSITION AND WELL-BEING BENEFITS
Flexible work hours
Company canteen
Car provided by company
Mobile provided by company
Car park
Break room
Gymnasium
Nursery
Work clothes and tools
Laptop provided by company and Internet access
TRAINING AND INFORMATION BENEFITS
Training expenses for employees
School expenses for children
School transport expenses
Special grants for children (university, stays abroad)
Subscriptions to specialised magazines or newspapers
ECONOMIC SECURITY BENEFITS
Pension plans
Salary advances or loans with no interest
Parental or adoption complement
Accident or leave complement
Participation in company’s profit
Remuneration in shares or stock options
Discounts for employees on company’s products or services
Rewards (by seniority, by accomplished objectives, etc.)
LEISURE AND FREE-TIME BENEFITS
Cultural activities (cinema, shows, and theatre tickets)
This is a preprint of a book chapter to be published in Contemporary Issues in Entrepreneurship Research. Social
and Sustainable Enterprise: Changing the Nature of Business (Eds. Underwood, S., Blundel, R., Lyon, F. and
Schaefer, A.). 2012. Vidal Salazar, M.D., Cordón Pozo, E., Ferrón Vilchez, V.
Volume 2. Pages: 141-166. Emerald Books ©. ISBN: 978-1-78190-254-7.
DOI: 10.1108/s2040-7246(2012)0000002011
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Trips paid by company
Paid personal days
Subsidised sport activities
Leaves (exams, process of moving, visits to the doctor)
Paid sabbatical year
OTHER SOCIAL BENEFITS
Luncheon vouchers
Discounts on insurance/mortgages and loans/health insurance
policies/hotels/restaurants
Work travel expenses
Housing purchase allowances
Gifts (Christmas presents, company products)
Financial and/or legal assistance
Predisposition to contract children and/or couple
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