A decent paycheck is no longer enough. Employees want recognition, trust, and mental well-being — they need emotional compensation too.

Only 13% of Europeans feel truly excited about their work.
54% of Czechs are considering leaving their jobs.
Gen Z is looking for deeper meaning — not just a paycheck.
And mental health is becoming the new key to employee loyalty. Emotional compensation is no longer a nice-to-have. It’s a must.

Emotional paycheck and Verso

Emotional paycheck

Companies around the world are facing one of the biggest silent threats: declining employee engagement. According to Gallup, the situation is most critical in Europe — only 13% of people here feel genuinely excited about their work. We’re losing connection with what we do. For many of us, the paycheck alone is no longer enough — we also need emotional compensation.

According to Randstad, more than half of Czech employees are considering changing jobs this year — and nearly half of them say they’re definitely going to do it. Yes, money still matters. But right behind it come work-life balance and opportunities for personal growth. Employees are sending a clear message: we want more, we want to feel good at work — mentally, too.

“While salary is still the top priority for Czechs, the so-called ‘emotional paycheck’ is becoming a clear competitive advantage for companies, especially in a low-unemployment environment. It’s often overlooked, but it’s a crucial aspect of working life,” explains Daniela Pauknerová from the University of Economics in Prague.

So what counts as emotional compensation?

  • Work that feels meaningful and doesn’t lead to burnout
  • Opportunities for career growth
  • Recognition, feedback, trust, and support
  • Confidence in leadership and a positive workplace atmosphere
  • Flexibility — home office, personal work rhythm

This type of “compensation” is especially sought after by Generation Z.
Today’s twenty- somethings want work that aligns with their values. As Pauknerová points out, a decent salary is just the starting point for them.

Company psychologist Kristýna Cetkovská from Soulmio adds: “It simply means giving employees recognition for their work, emotional support, feedback, or even just basic human connection.”

According to her, now is the time for companies to stop avoiding emotional compensation.
Years of turbulence, the pandemic, war, inflation, have taken a toll on people’s mental health. A survey by Ipsos found that 27% of Czechs have experienced such high levels of stress that they were unable to go to work.

Fortunately, there’s a way to change that.

In the Czech Republic, a new path is opening, the Motivation and Employee Engagement package from VERSO by Up Benefity. This revolutionary solution helps companies build a culture of recognition, boost loyalty, and create a workplace where people feel valued and psychologically safe — all without increasing payroll costs.

Today’s employees are looking for meaning, authenticity, and respect. And emotional compensation may be the answer, one you can offer before they even ask for it.

You can find more details about emotional compensation in the article on hn.cz.

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