Many companies assume that a gross pay scheme is too much hassle to administer, that it's far too expensive, or that employees are “probably not interested in that sort of thing”. And if you think that way too, it's already costing you dearly in time and money, while you're not spending nearly enough time on your employees and on what they actually need.
Because the point of a gross pay scheme isn't just to buy the newest and most expensive things. At heart, a gross pay scheme is about your company making sure your employees have the best conditions for doing their work. Whether it's with the right IT equipment, ergonomic furniture or cheaper transport, you can help your employees without losing track and/or blowing the budget.
Misconception #1: Gross pay schemes take too much time to administer
That depends entirely on how you choose to do it.
If you want to handle it all yourselves – researching equipment, hunting for offers, purchasing, tax rules, handing out equipment, employees leaving and disposing of equipment – then the answer is “yes”: it gets really cumbersome and time-consuming. That's time and resources you'd certainly make better use of elsewhere in your company.
But the way to skip all the steps above, easily and elegantly, is to find a good partner that specialises in software for gross pay schemes.
All you have to do is set the framework for your schemes, and the rest is handled automatically. You avoid costly wrong purchases and short-term standard solutions altogether, because the employees choose their preferred equipment themselves.
With Flexbuy you can let employees keep their equipment for purely private use when their gross pay scheme ends, or they can simply return the equipment to us. The same of course applies if the employee leaves the company in the middle of their scheme. Either way, you'll never be left with a graveyard of old equipment you no longer need.
So, generally speaking, a gross pay scheme is only as cumbersome as you choose to make it.
Misconception #2: Gross pay schemes are too expensive
Whatever the size of the company, we never escape the classic “we can't afford it” excuse. So this is where you find out that you, as a company, decide for yourselves what a gross pay scheme should cost you.
Gross pay schemes can be run entirely cost-neutrally for the company, because you essentially pass the costs on to the employees. In return, the employees can save at least their withholding tax rate on mobile phones, computers, travel cards etc. that they would buy in the shops with their taxed money anyway.
You can also give your employees a contribution that fits within your budget. That way you do something extra nice for your employees, and at the same time you're 100% in control of how much of the budget you spend on IT and work equipment.
Get practical tips on making your gross pay scheme cost-neutral in the webinar “Gross pay schemes: get to grips with employee benefits and tax rules” (in Danish)
Misconception #3: Employees aren't interested in gross pay schemes
Don't underestimate how important it is to be able to work with the right equipment. Because 89% of employees feel more motivated in their work when they can choose their equipment themselves *.
It may well be that not all your employees care about the latest technology. But there's most likely someone who could do with an ergonomic office chair for their back problems, a sit-stand desk for the home office, or cheaper public transport to and from work.
And if you want happy, dedicated employees, it's your job to help them as well as you can, so they can do their work as well as they can.
Bonus misconception: Gross pay schemes are the payroll administrator's worst nightmare
If your company already uses Zenegy Payroll as its payroll system, you should seriously consider having gross pay schemes through Flexbuy.
With our integration with Zenegy Payroll, you can sync employees and their individual gross pay deductions, so the payroll office doesn't get extra work every time an employee starts, leaves, buys something extra or has to be taxed. You get full control over what the system should do automatically and what you want to do manually yourselves.
Webinar on gross pay schemes:
We know that getting started with gross pay schemes can feel overwhelming, but what's the alternative? Here we (quite honestly, and super biased) recommend that you start by watching (again) our webinar “Gross pay schemes: get to grips with employee benefits and tax rules” (in Danish) if you need more practical knowledge of how gross pay schemes work from A to Z, what benefits you can offer and which tax rules you need to keep track of.
