The cooperative movement at the service of social medicine
The boom in social enterprises, or companies with a purpose, has redefined the value metrics on the work market. The companies’ purpose of double or triple lines of results, balancing the financial profit with the social/environmental impact, has been turned into their main lever for acquiring talent. This model is a long way from a purely capitalistic view, as it incorporates significance as an intrinsic compensation factor for the job.
The emotional salary is a complicated construct that goes beyond the standard social benefits. It encompasses factors such as independence in decision-making, flexi-time (work-life balance), explicit recognition and access to relevant training for professional development. In a social company, the crucial element is the ‘fit’ between the employee’s personal values and the organisation’s mission. This fit generates a high level of engagement.
The social purpose of these organisations is not a simple added factor, rather it is the central pillar of their employing brand. For highly qualified professionals who already have their basic financial requirements covered, the chance to take part in the resolving of systemic problems becomes a key differentiating point. The remuneration is perceived as a “personal investment” in a positive change, which raises the work satisfaction to an existential level.
A normal criticism for social companies involves their limited potential for offering elite monetary salaries, given the reinvestment of profits in their mission. However, the perceived high value of the emotional salary compensates for this gap. The talent is willing to accept a salary trade-off if they, in turn, obtain a work setting with an improved work environment, a greater feeling of belonging and a measurable impact.
The maximisation of the emotional salary in a context of social impact directly affects the productivity. An employee who is completely in line with, and motivated by, the mission shows greater resilience, less absenteeism and greater loyalty. This is translated into a drastic reduction in the turnover rate, which in the long-term is turned into a significant economic benefit for the social company.
Social companies use ethics as a strategic management tool. Transparency in the governance, pay equity and the promotion of diversity are perceived as extensions of the founding purpose. This model of conscious human capital attracts a segment of professionals who seek ethical leadership and a corporate culture that reflects the ideals that the organisation promotes to the outside world.
The pressure between profit and well-being is resolved in a social company by way of the integration of both items. The real magnet for talent is not the high profit per se, but rather the high generated value, both for the company and for the individual. Skilled talent no longer only looks for wealth, but rather for meaning, and the social company is the one that best capitalises on this deep human need in the modern era.
“Social economy” isn’t a buzzword: it’s a practice that opens doors. When we talk about the job opportunities generated by the social economy, we are talking about cooperatives and social enterprises that foster inclusion, leading to stable employment, improving the quality of employment and supporting regions that seemed to have no future.
The social economy is not a marginal sector, but a business model committed to people and social cohesion. We examine social economy entities and enterprises, their shared values, and their current role in Spain and Europe.