Why some entrepreneurs are reluctant to give more advantages to their employees?

Giving additional advantages to its employees seems to be a good way to motivate them, retain them and position themselves as an employer of choice. However, for many entrepreneurs, offering more benefits in terms of acquired rights, bonuses or other advantages in kind may seem risky. So why do some entrepreneurs are reluctant to grant these advantages to their employees?

Cost management deemed too complex

One of the main reasons why some entrepreneurs hesitate to give more advantages to their employees is cost management. The increase in benefits in kind or acquired rights inevitably leads to an increase in expenditure for the company. If it is easy to do it when everything is fine, it can become a source of difficulty when finances or development do not follow.

Also, labor law, in particular concerning paid leave, seniority premiums or social protection, requires a relatively rigid and expensive framework for employers. Added to this are social contributions which, depending on the type of advantage granted, can weigh heavily on the finances of the company.

For an entrepreneur, each additional advantage given to an employee represents an additional cost, whether it is the implementation of a mutual company, the financing of employee savings or the management of additional leave. At a time when many companies seek to optimize their margins and keep competitive on an often very competitive market, this increase in charges can be perceived as an obstacle to development.

Administrative complexity

Beyond direct costs, the management of these advantages in terms of accounting and administration can also represent an additional burden for small and medium-sized enterprises. The implementation of new advantages often requires reviewing employment contracts, implementing collective agreements, and ensuring that the entire company meets the standards in force. This administrative complexity is not always well received with the multitude of operational tasks which are already to be managed.

The fear of the increase in acquired rights

The rights acquired are legal or negotiated advantages which become permanent as the seniority or the evolution of the status of the employee. For example, an employee acquires additional leave, seniority premiums or other advantages depending on their service duration within the company.

If these acquired rights are clearly defined and legally protected, they can represent a source of constraints for employers. One of the major challenges is that once these rights are allocated, they cannot be reduced or deleted without a mutual agreement or a change in legal conditions. This can represent a long -term risk for the company. For example, if an employee is entitled to an seniority bonus that increases over time, the employer may fear that this will weigh too heavily on costs as the company is developing.

Once the rights have been acquired is established, a phenomenon can occur where each new employee obtains the same rights as it is seniority, even in an economic environment where resources are limited. This creates a dynamic where the company is ultimately to have to manage increasing costs to maintain these advantages, particularly in a context where wage competitiveness is essential.

Some companies therefore choose not to offer additional rights, for fear of “locking” their wage management and having to face automatic cost increases over several years. The fear of escalation of loads and rigidity in the management of the workforce leads certain leaders to reflect their ardor.

The weight of legislation

The legislation on acquired rights and benefits is particularly protective for employees, which, although beneficial for the latter, can become a brake for certain entrepreneurs. Rights in terms of leave, training, dismissal or provident are often deemed restrictive and heavy to manage for managers, especially in the case of SMEs or start-ups which do not have the same means as large companies To finance and administer them.

Complementary retirement systems, paid leave rules or regulations on business mutual insurance company are often elements to which entrepreneurs must comply. In the event of non-compliance with legislation, companies risk significant financial sanctions, not to mention social conflicts and negative impacts on the image of the company.

The advantages versus competitiveness: a strategic choice

Cost management remains a central issue for any business. Many entrepreneurs believe that giving too many advantages in kind or extending the acquired rights of their employees can affect their competitiveness, in particular in the face of competitors who operate in less restrictive contexts or with more flexible management of human resources.

Entrepreneurs, especially in sectors with high intensity of workforce or low margins, must make strategic choices. If offering benefits or acquired rights is perceived as a factor of loyalty and attractiveness for talents, this can also have repercussions on the finance of the company. The calculation is often done on the basis of an assessment of the return on investment of the advantages granted in relation to the improvement of the performance or the productivity of the employees.

In some cases, managers can choose to favor higher remuneration rather than offering additional advantages, in order to attract talent while maintaining budgetary flexibility. They can also choose to compensate for the lack of advantages by a better quality of work life or a wellness policy that does not translate directly into additional costs.

How to prevent the rights acquired from becoming a brake on competitiveness?

Even if certain advantages can represent significant charges, there are means for entrepreneurs to integrate them effectively into their human resources management strategy.

Anticipation and planning

One of the means to limit the risks associated with acquired rights is to anticipate well and plan their implementation. By assessing the real needs of employees and balancing the advantages according to the size and profitability of the company, it is possible to create advantages which meet both the expectations of employees and the imperatives of the company.

Modular and flexible advantages

Propose modular or flexible advantages, such as restaurant titles, gift vouchers, or telework options, allows companies to adapt to the specific needs of employees without necessarily increasing fixed costs permanently. By choosing less restrictive solutions and more suited to the reality of each employee, the company can offer advantages while mastering its expenses.

Suitable contracts and agreements

Setting up well -defined company contracts or business agreements can help limit the risk of uncontrolled increase in acquired rights. These agreements may specify the conditions under which these rights can be revised or adjusted, thus guaranteeing the flexibility necessary for the company.