The cost of living crisis is going nowhere, and employees are feeling the pinch.
They are prepared to move jobs for better pay and benefits, according to new data from Emburse and Reward Gateway.
Here's what you need to offer if you want to retain your workers and keep them engaged and productive.
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According to new data from benefits giant Reward Gateway, more than half of employees have considered leaving their job in the past six months (with a third repeatedly considering a resignation).
Pay is the top reason (42%), found the survey of 2,000 UK employees by Reward Gateway – this is no surprise given that the cost of living crisis is rearing its ugly head globally.
62% of the 1,000 US workers surveyed by expenses tech company Emburse are somewhat or very concerned about their personal finances.
Reward Gateway’s survey of 1,000 UK HR decision makers found that while they are prioritizing financial wellbeing (55% of the 1,000 surveyed), they are not doing enough – and 53% know this, with just 14% saying the company offers reward and recognition programs aimed at alleviating financial wellbeing issues.
Plus, just five percent of HR said they believe that employees’ financial wellbeing has significantly declined in that last two years, but the truth is almost three times higher: 13%.
35% of employees told Reward Gateway their financial wellbeing had declined in the past two years. This is an even bigger concern for younger generations with the figures rising to 49% for Gen Z, 46% for early millennials, compared to 34% for Boomers.
It’s time to step up recognition and rewards
62% of the UK employees surveyed by Reward Gateway called on employees to do more, but where should they start?
Yes, higher pay is a good start – “however, when a company’s economic situation doesn’t allow for pay rises, employers often feel there is nothing they can do,” said Reward Gateway chief people officer Nebel Crowhurst.
She added that “this is far from the truth” – there’s much more for organizations to do.
Reward Gateway’s US data found that 44% of employees said that working for a company that cares about their wellbeing is more important than a 10% raise. This is based on a survey of 1,000 employees working in companies with 100+ employees.
Good reward and recognition programs can relieve financial stress for both employer and employee, when they are made visible and accessible to all,” continued Crowhurst.
38% of UK employees said they they’d like cash bonuses and 37% are keen for extra days off.
Reward Gateway’s US data shows that 43% would like access to financial wellbeing support, 42% are keen for an employee discounts program and 45% want more tangible rewards like bonuses and gifts.
In addition, employers need to think about their return to office policies in this economic situation – Emburse’s US data shows that 27% are feeling the pinch from increased commuting expenses and 13% said they had to move cities to comply with office mandates.
Another element of financial wellbeing that Emburse uncovered was so-called ‘revenge spending’ where employees make personal purchases and pass them off as business expenses – 24% of the 1,000 US employees surveyed admitted to doing this.
The reason why was because they feel under-pressure financially and are frustrated that it takes their company so long to reimburse them.
40% said they had incurred fees or interest on their personal credit card because of a business purchase, while 19% had had to delay their own purchases or payments while waiting to be reimbursed for their expenses.
The very basic thing that employers can do is “lessen the burden on employees” and stop them “having to dip into their personal finances”, which are under strain as it is – that’s according to Emburse’s CFO Adriana Carpenter.
“Companies must start investing in employee wellbeing via systems, tools and practices that support employees as ‘whole humans’ – not just workers,” concluded Anthony Knierim, Reward Gateway’s MD of North America.
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