As companies finalize their budgets for 2025, variable compensation is emerging as a key lever to compensate for low salary increases. Fixed salaries are only expected to grow by 1.5 to 2% in 2025, compared to an average increase of 3.5% in 2024.
Faced with this stagnation, employers are relying on forms of incentive compensation to motivate and retain their teams. This use of variable remuneration, previously limited to certain categories of staff such as salespeople or managers, now concerns a growing number of employees. So, 71% of workers, employees, technicians and supervisors (OETAM)as well as 85% of executives in France now benefit from variable remuneration.
Diversified performance criteria
Companies, aware of the importance of this type of remuneration, are continually refining its operating rules. The objective is to make it fairer and more adapted to the specificities of each position. Traditionally, variable remuneration depends on criteria linked to commercial performance, such as the achievement of sales or turnover objectives.
But the human resources directors (HRD) introduce new indicators to measure individual and collective performance. The premiums may therefore depend on the customer satisfaction ratewhether internal or external, or even criteria linked to the securityat theinnovationor even corporate social responsibility (CSR)with objectives such as reduction of carbon emissions or theinclusiveness in human resources management.
“The main thing is to establish criteria consistent with the company’s project, and above all to make these criteria transparent,”
Sacha Kleynjans, founder of the Ferway solution, specialized in compensation management.
This transparency appears to be an essential element for establishing a relationship of trust between employer and employee, allowing everyone to understand the amounts received and the reasons behind them.
Digitalization of premium management
One of the main challenges in adopting variable remuneration is its practical day-to-day management. Traditionally, companies used manual spreadsheets to calculate bonuses and commissions, but these methods are increasingly being abandoned in favor of digital tools. These tools offer several advantages: they reduce input errorslimit the late paymentsand allow greater transparency. Employees can thus access in real time information on the bonuses they will receive, based on their performance.
“We are seeing an increasing number of requests for our solution,”
Sacha Kleynjans
Stating that the tool allows validated amounts to be automatically exported to the payroll software, guaranteeing simultaneous payment with monthly salaries.
This digitalization also helps to reduce the work of HR departments, often overwhelmed by time-consuming tasks linked to the manual management of variable remuneration.
Impacts on employee motivation
Transparency and automation of variable compensation management have a significant effect on employee motivation. According to Ferway, sales performance increase by an average of 25% in companies that have adopted this solution. By giving employees clear and immediate visibility on their remuneration, these tools contribute to better involvement and increased commitment.
That being said, companies are aware that variable remuneration alone is not enough to guarantee the long-term motivation of their teams. According to a recent study, 42% of young workers consider the working atmosphere as a decisive criterion in the choice of their job, almost on par with remuneration. Thus, variable remuneration must be accompanied by other recognition actions, such as regular feedback on performanceof the formations or even internal promotion opportunities.
@mediavenir.business New trends in variable remuneration in 2025 ???? While salary increases planned for 2025 are capped at between 1.5 and 2%, variable remuneration is taking center stage. This payment system, which includes performance-based bonuses, is spreading across different sectors and job levels. ???? ???? With 71% of workers, employees, technicians and supervisors, as well as 85% of executives in France already benefiting from this model, variable remuneration is becoming an essential motivation driver. Bonuses vary based on various performance indicators, ranging from customer satisfaction rates to innovation and corporate social responsibility. ???? ????️ Companies are adopting digital tools for seamless premium management, ensuring accuracy and speed in payments. These innovations allow employees to monitor their performance and corresponding remuneration in real time. ???? ???? Clarity is crucial: it builds trust and stimulates team engagement. Good management of variable remuneration is accompanied by varied recognition to guarantee lasting motivation. ???? #VariableRemuneration #WorkMotivation #RHInnovation #GestionDesPrimes #Transparence #Performance #RH2025 #ProfessionalSatisfaction ♬ original sound – Mediavenir Business
Consistency between remuneration and recognition
For variable remuneration to be a real motivational lever, it must be integrated into an overall human resources management system, consistent with other forms of recognition. Companies that succeed in sustainably motivating their employees do not just pay bonuses, but ensure that they establish a climate of transparency andequity. Every employee must know not only what they can earn, but also why and how. This requires rigorous and transparent management of performance criteria and recognition actions.
Practical information:
- Salary increases for 2025 are expected to be between 1,5 et 2 %.
- 71% of OETAM et 85% of executives benefit from a form of variable remuneration in France.
- Companies are increasingly adopting digital tools to manage bonuses and commissions in real time.
