Wages are soaring at their sharpest rate in over 20 years, it has been revealed. Despite this, pay is still trailing behind the quickening pace of inflation.
According to the BBC, pay rose by 5.7 per cent in the year to September, the fastest growth since 2000, excluding the pandemic. But when adjusted for rising prices, wages fell by 2.7 per cent.
This is causing an array of problems, with the cost of living rising at its fastest rate in almost 40 years.
Strict budget
ManpowerGroup, one of the UK’s biggest recruiters, told the BBC that the gap between wages and prices was “putting more and more pressure on households”.
For businesses, it is a dilemma, how do they attract and retain staff when they cannot afford pay rises in line with inflation?
There are many attractive ways to recognise employees for their efforts. Making sure the company can afford them and following a strict budget is a priority when developing reward schemes.
There are many creative ways in which staff can be rewarded, but you should always be aware of potential tax liabilities, so check with your accountant.
Rewards could include:
Employee share scheme
A share scheme is a way of sharing company ownership with your team. You can reward one or more key people with equity, or all of your employees.
Monthly bonus scheme
Reward the top performers whose efforts benefit the company’s bottom line.
Provision of meals
It can be expensive, but free or subsidised meals free meals at work are a practical and sensible way to look after staff wellbeing.
Training and Education
A winner for both parties, it improves employee retention and allows them to improve their skills, which shows the employer supports their professional goals.
Time off
Consider four-day work or flexitime, offering an extra day off, or even leaving a few hours early on a Friday. It will build staff morale and ultimately benefit the business.
Looking for help and advice on the above? Contact our team today.
