15th September 2023
As the cost-of-living crisis continues it is extremely challenging for employers, as salary increases sit at the forefront of many employees’ minds. Organisations are struggling to keep up with the rate that inflation is increasing, so pay rises aren’t always an option. This means many organisations are seeing more resignations from valued employees as the recruitment market continues to prove competitive during the crisis.
If you are not in a position to give employees a cost-of-living increase that is in line with inflation (currently at 9.1%), you may be asking yourself what you can do to support employees and prevent them looking elsewhere. Keep reading to see our best advice on non-monetary alternatives that can help support your employees, promote staff retention, and keep your organisation in the competition when it comes to recruitment.
It may seem like a small change to make but encouraging employees to work from home more frequently can reduce travel costs and other expenses that may come with working in the office. For example, some employees may need to pay extra for childcare when working from the office, some may need to buy lunch, and some may incur car park costs.
Working remotely can also provide benefits such as access to cheaper leisure activities and healthcare services during the week. This will not produce any extra costs within your organisation and paves the way for more productive and happier work force.
Increasing the days included in your organisations holiday allowance will set your organisation apart from the rest when it comes to competing against other recruiters and keeping those valued employees around. Most organisations only include up to 8 bank holidays in their allowance, so even expanding your holiday allowance to cover all bank holidays throughout the year could be something that appeals to most.
Another approach some employers take is reducing their working hours. This may mean your usual office hours are 8-5 but you choose to reduce these down to 9-5 to stay within the typical working hours. On the other hand, stepping away from the average workday and promoting flexible shifts depending on the individual could be beneficial for some employees too.
Giving your employees the opportunity to enroll into a healthcare scheme is also a good alternative to a pay rise. These health benefits typically range from private health insurance, access to medical treatments and can even include gym memberships. Whatever package your organisation decides to opt for, it is important to consider what types of packages other employers may be offering and how you can stand out from the crowd. Some employers do not offer any form of healthcare benefits so even just enrolling your employees into one of these schemes makes your organisation more appealing and tells employees that their health and wellbeing is important to you.
Offering training opportunities to help with employee development also remains a successful alternative. It’s important that your employees feel valued, and providing them with the tools to learn new skills, develop current skills, and potentially prepare for an internal job change is a great way to do this. Providing learning and development opportunities like this increase your chances of improving employee retention, motivate employees and allow room for employee growth into more senior roles within the business.
Employees are also more likely to experience higher job satisfaction, which in turn improves productivity and in turn assists employers with gaining and keeping ‘top talent’. Secondly, the more confidence a workforce has in its abilities, the more encouraged people will feel to expand their knowledge to other departments, reinforcing the idea of ‘top talent’ and creating connections between your employees.
If your organisation is struggling to meet the demands of today’s cost-of-living crisis, we are here to help you and your employees feel supported through this time. Our Solicitor, Sarah Everton who is Head of Employment Law can help you determine which alternatives are best for your workforce and how you can implement these changes. You can give her a call on 01782 525012 or alternatively email: firstname.lastname@example.org.