CONSULTING

Non-Pay Scale Staff (FuCos)

NON-PAY SCALE STAFF (FuCos)

RELATIONS WITH NON-PAY SCALE STAFF (FuCos)

One of the matters that has become relevant over the last years is the management and motivation of employees who are not part of any collective bargaining agreement and thus lack an external regulation of their salary increases and work methods.

There are many causes or reasons for which this group of Non-Pay Scale employees (known to some companies as FuCos) requires special attention and management of their talent and abilities.

In times of high-inflation and companies seeing their net profit shrink, this staff —in many instances— has been negatively impacted because they could not get increases in the same range or percentage than those granted to employees under a collective bargaining agreement within the same company. This reduction in their income measured in constant currency and the subsequent flattening of salary scales created human resources-related conflicts in many companies and, in certain sectors of the economy, this made these FuCos search for a way to create their own trade union (for mid-level positions, senior staff, etc.) as they considered that “only with a trade union as support” they could get a treatment equal to that given to employees under a collective bargaining agreement. Simultaneously, new legal claims emerged setting out discrimination which, beyond the outcome of the dispute, created an internal stir within companies, and which was indisputably a bad sign and had a negative impact on their performance.

Beyond these salary-related matters that could be simply solved if the company determined as an internal policy that percentage increases agreed each year for their employees under a collective bargaining agreement were also transferred and applied to FuCos, the human capital management of these employees requires a different planning and a continuous follow-up to achieve the retention of key staff.

Thus, the benefit policy with its multiple variants and alternatives is usually an efficient tool to counteract any anomaly or conflict resulting from a differentiated management of salary issues. Benefits in terms of vacations, home office, casual Friday (in terms of clothing), early retirement, etc., are usually motivational decisions much valued by most FuCos. The decision regarding which one of these benefits should be applied depends on multiple factors, from age range to the industry sector those employees belong to, and they should be carefully selected in order to achieve the greatest impact with the smallest investment.

This FuCos-focused management not only needs to tend to strengthen the bond between said employees and their companies, but it should also be designed in a way that allows gathering significant information to create retention policies and set up communication channels and training systems for such staff.

The goals sought after through this kind of FuCos management are usually four: a) FuCos should feel that they are valued by their companies; b) FuCos should feel that they have a voice and that they have a good communication with their employers; c) FuCos should understand what companies want from them, and what they plan for their future; and d) companies should gather relevant information about their FuCos and, with it, they should develop training policies with the most valuable employees, as well as retention policies designed for those that are considered key to the business.

The service provided aims at creating a permanent Action Plan with FuCos that would allow meeting said goals or any others that may be defined, and keeping such information updated in the future. The design of the Action Plan is carried out jointly with the Business Management and the HR Department.