Chartered Institute of Personnel and Development (CIPD In its regular labour market outlook said it expected workers to receive smaller pay rises this year, as employers and employees alike struggle with a cost of living crisis, talent shortages and low budgets both at work and home.
Jo Kansagra, Head of People and Virgin Incentives and Virgin Experience Days believes that this is a vital time for employers to pay attention to the benefits and rewards that are available to their teams, in order to avoid diminishing morale and productivity at work. Jo said:
“With the news that pay rises across the UK are expected to be smaller this year, talent attraction and retention should be front of mind for employers. How will they incentivise employees when budgets are tight and pay, or performance bonuses are not a feasible option? The cost-of-living crisis is affecting many individuals in the UK, in this context small things can go a long way – so employers can think about meaningful rewards and benefits that help people tackle rising food, household and family costs. Pay is obviously high up on the list of priorities for employees, but so is feeling valued and secure in a role, and some lifestyle centric rewards can also increase productivity and overall happiness amongst teams, and these don’t have to break the bank.
“I’d advise employers to gauge their team’s personal priorities to get an understanding of what employees want from their workplace. For example, some may prefer subsidised travel, snacks available in the office or a contribution to a gym membership. Increasingly, we’re seeing employers, particularly SMEs, mark smaller reward milestones like work anniversaries, and appetite for our multi choice gift cards is on the rise. These tend to be used toward essentials – alleviating some pressure on weekly budgets. For example, these can be used on a weekly food shop, a meal or day trip out with the family. There are various ways in which businesses can make smaller investments into their employees to improve wellbeing and satisfaction at work, even without offering a large bonus.”
