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The Impact of Emotional Salary on Employees and Companies

In: Knowledge Management and Innovation, Volume I

Author

Listed:
  • Milena Gonçalves Machado

    (Applied Management Research Unit (UNIAG), School of Management, Polytechnic University of Cávado and Ave (IPCA))

  • Bruno Barbosa Sousa

    (Applied Management Research Unit (UNIAG), School of Hospitality and Tourism, Polytechnic University of Cávado and Ave (IPCA))

  • Pedro Novo Melo

    (Applied Management Research Unit (UNIAG), School of Hospitality and Tourism, Polytechnic University of Cávado and Ave (IPCA))

Abstract

The main objective of the chapter is to analyze and understand how emotional pay impacts on the professional and personal lives of employees, as well as its contribution to the success of organizations. A case study was carried out in the Portuguese context, with semi-structured (exploratory) interviews with company managers and focus groups with company employees. The results show that, as in the literature reviewed, emotional pay is highly valued by employees, being an essential complement to financial pay and vital for them to remain in the group. They emphasize flexibility, recognition, training, good health insurance, and a positive working environment, as well as the fact that it has a direct impact on motivation and performance, increasing commitment to the company. Emotional salary has emerged as a strategy that has been increasingly used in recent years. Its aim is to improve the quality of life of workers by satisfying their needs, while boosting the competitiveness, productivity, and results of organizations. It is a tool that allows both parties—company and worker—to gain from each other.

Suggested Citation

  • Milena Gonçalves Machado & Bruno Barbosa Sousa & Pedro Novo Melo, 2026. "The Impact of Emotional Salary on Employees and Companies," Springer Books, in: Marco Valeri (ed.), Knowledge Management and Innovation, Volume I, pages 83-109, Springer.
    • Handle: RePEc:spr:sprchp:978-3-032-16620-3_4
    DOI: 10.1007/978-3-032-16620-3_4
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