Want to support staff with the rising cost of living?

A growing number of businesses recognise the struggles that their staff face and want to offer additional support to them.

In fact, a recent study by TotalJobs showed that:

  • 77 per cent of workers are worried about the cost of living
  • Not surprising given that 30 per cent feel their wage does meet their basic needs
  • This is exacerbated by the fact that 90 per cent of workers have experienced rising work-related costs in the last 12 months.

Of course, employers can’t always do more quickly or easily, but can they afford not to act?

  • More than a third of workers are considering changing work or sectors to seek better pay
  • Pay in 29 out of 40 sectors in the UK has fallen behind inflation – average pay only increased by 3.05 per cent in the last year
  • Essential workers are already twice as likely as non-essential workers to have left their job in pursuit of better pay

With the average cost of recruiting a new employee being £6,125 – rising up to £19,000 for senior roles – according to the CIPD, can you afford to lose and replace staff?

It’s not all doom and gloom though as in the last year as 58per cent of employers met the expectations of their staff by increasing their salaries, of which:

  • 35 per cent awarded pay rises of between 1-5 per cent
  • 34 per cent increased salaries by 6 – 10 per cent
  • For the lucky few, 16 per cent of employers offered average raises of 11-20 per cent.

Where employees didn’t receive a raise at all, the primary reason was the effect of the cost-of-living crisis on their employer – affecting around 35 per cent of employees.

Despite this 62 per cent of those who received a raise did so because their employers recognised the effect of the cost-of-living crisis on them.

Do you need advice on setting salaries?

With changes to the National Living and other National Minimum Wage rates coming up in April, now is an important time for employers to review their current salary levels.

Some of the recent assessments that we have conducted for clients have seen their employment costs increase by many thousands of pounds per year, even among smaller workforces.

If you would like assistance with your remuneration plans for 2023 our team at MT Pay can help. To find out more about our services, please contact us.