The headlines are full of the ‘cost of living’ crisis. And while low-income workers are likely to be the worst affected, Tiger Recruitment’s 2023 salary and benefits review suggests that employees across the board are feeling the strain. According to Tiger’s research, 14% of UK professionals worry they’ll need to take on a second job to supplement their salary in these straitened times. One HR advisor surveyed is already juggling three additional jobs to pay the bills. Others say they’re contemplating a move abroad where they perceive it to be less expensive. Could and should employers be doing more to support their workforce?
Business performance
UK employees certainly think employers have a bigger role to play. Worryingly, more than half of those surveyed say their employer isn’t doing anything to support them, and a similar number think they should do more by adapting their workplace benefits to reflect higher costs. From a business perspective, addressing employees’ financial worries and the knock-on effects pays dividends. It not only boosts morale but also enhances performance.
When considering how best to help staff, industry benchmarks are a useful guide. Data indicates that the three most common ways employers are helping their teams with rising costs are offering a pay rise for all staff (21%), giving more flexibility over home working to reduce commuting costs (11%), or granting a one-off payment or cost-of-living bonus (8%).
Money matters
Perhaps unsurprisingly, Tiger’s research shows that a pay rise is at the top of people’s wish lists. Despite recessionary fears, a third (35%) of professionals say they’re ready to move jobs for a better salary. That’s how much they care about earning more. However, in the current climate, not all employers can afford to increase wages, particularly if, like many businesses, they did so earlier this year to retain talent in a fiercely competitive market. If raising salaries isn’t an option, a designated cost-of-living bonus can be a more flexible way for employers to contribute to employees’ rising energy bills or commuting costs.
No and low-cost benefits
There are also no and low-cost ways to support employees and motivate them to stay. For instance, Tiger’s research consistently shows how highly employees prize hybrid working.Giving staff the flexibility to work between home and the office allows them to weigh up the cost benefits of, for example, saving money on their commute versus using more gas and electricity while working from home.
Career development also matters. Helping people map out a clear path of personal progression can go a long way to motivating them and helping them see a future with the business – and a route to improving their earning potential.
Financial wellbeing
The value of tools that enable employees to build resilience and take control of their finances should not be underestimated. Introducing a financial wellness programme could be as simple and low-cost as using existing internal communications channels to signpost free, independent financial wellbeing advice. For example, Money Helper and Mental Health UK offer a wealth of helpful resources.
Mental health
Employers should also be mindful that employees struggling with money worries are at higher risk of mental health problems. According to research from the Money and Mental Health Policy Institute, one in five UK adults has felt unable to cope due to the rising cost of living.
The good news is that, following the pandemic, mental health is moving up the business agenda. It is currently the sixth most popular benefit employees receive according to Tiger’s 2022 research – in last year’s survey, it barely featured at all. However, a fifth of UK employees would still like to see their employer do more. Providing a safe, open environment where people feel comfortable discussing their anxieties without judgment is a good start. Having a mental health first aider – the first point of contact for anyone experiencing mental health difficulties – can also help.
Different employees will have different needs – but one thing applies to businesses everywhere: the pandemic showed that employees expect their employer to step up in crisis times and they judge them on how well they do. It’s up to employers to do the right thing. It's not only their moral duty – it’s also the best way to futureproof their business so that when the good times return, the people they need to prosper and grow are happy, healthy, committed and ready to deliver.
