A thoughtful employee motivation system – Bonus card18.12.2020
LPB Bank together with HR Optimum creates a thoughtful employee motivation system – Bonus card.
In December, LPB Bank in cooperation with HR Optimum Solutions, began to offer a Bonus Card to Latvian companies, which includes a clear and well-thought-out employee motivation system with the possibility to regulate the amount of allocated funds individually for each employee.
Depending on the wishes of the employees and the company’s personnel policy, the company can provide the following types of bonuses:
- paid meals;
- health care;
- sports activities.
Via the Bonus Card, the employer can individually assign to each employee an annual, quarterly or monthly limit with automatic increase option. The employee can use a Bonus card in any of 4,000 restaurants or cafes in Latvia as well as in more than 5,500 health care institutions and 500 sports and gyms, that accept bank payment cards. The employee receives information about the amount of money spent and the balance on the Bonus Card as a text message to his/her mobile phone. On the other hand, for the employer the bank account statement is sufficient for accounting – it is not necessary to receive and process cashier’s checks of each employee.
One of the advantages for the employer, compared to other types of bonuses, is the opportunity to receive tax benefits. In accordance with Section 8, Paragraph 15 of the Personal Income Tax Law: the employees’ meals paid by the employer (average EUR 40 per month) shall be excluded from the payer's taxable income. The overall employees’ meal expenses should not exceed EUR 480 per year. In addition, the employer has the opportunity to place his company logo on the Bonus Card, which allows additional personalization of the bonus provided to the employee.
“Motivation is one of the strongest impulses that stimulates each of us to achieve our goals. Proper motivation is more than half the success of any process. The bonuses that companies provide to employees in material form emphasize a thoughtful and attentive approach on the part of the employer and provide additional incentive in the daily life of employees. I am pleased to note that we have compiled all the best in one card. The Bonus card is exactly what I want to have by myself - both as an employer who provides and administers the card, and as an employee who uses the Bonus card. If we talk about the possibility to receive tax benefits for the company, then the Bonus card meets both, the needs of personnel management and the company's financial capabilities”, - comments Arturs Pilikers, CEO of HR Optimum Solutions.
“To the factors influencing the growth of productivity in our time, we should add care for our employees. By caring for them, you strengthen your reputation as a socially responsible employer and improve your company's image in the labor market. In cooperation with HR Optimum, we have created a staff motivation tool that is convenient for everyone and easy to administer. By issuing the Bonus Card, the employer can provide the employee with the most necessary, taking care of the employee's well-being and productivity, as well as reward for loyalty. We encourage you to take care of your employees, because your employees take care of your customers,” says Robert Christian Schoepf, Chairman of the Board of LPB Bank.
We invite you to visit the website of the Bonus Card www.bonusukarte.lv and learn more about the benefits for the employer and the employee. By using an interactive calculator, you can calculate the amount of tax benefits and savings, as well there is our convenient Bonus Card application form.