52% of organisations are actively trying to help employees with cost-of-living crisis

With the war for talent still raging on, pay awards plateauing for six rolling quarters and falling behind inflation, employers must look at how they can create a compelling and targeted employee experience, beyond salaries.

The data shows that nearly half (48%) of directors admit they set pay awards higher than originally planned amidst the war for talent at the beginning of the year, to help attract and retain top talent and compete with higher offers from other companies to secure the skills required.

In the same survey, 52% of directors said they felt compelled to pay higher salaries to help employees keep up with the rising cost of living. Initially, this money came largely from reducing office space to reduce overheads (42% of organisations), spending less on technology and innovation (40%) as well as organic business expansion (68%).

However, 63% of directors admit that with operational and business costs now on the rise as employees spend more time in the office, salary increases are not always going to be possible in the current market. 

Over half (52%) of organisations are putting measures in place to actively help employees with the cost-of-living crisis. XpertHR found that 73% of organisations are putting financial wellbeing support and advice in place.

Scott Walker, managing director of XpertHR, said: “With pay increases still falling behind rising inflation, employers are having to look for other ways to help staff tackle the cost-of-living crisis.

“To support these individuals, we are seeing increasing numbers of employers getting creative with the support they can offer, including granting repayable loans and non-repayable lump-sum payments as well as discount vouchers to reduce their employees’ monthly outgoings.

“Benefits like employee assistance programmes can go a long way in demonstrating support, while other offerings like flexible working and training can also contribute to retention, making employees feel trusted, valued, and invested in.”