Companies offer perks to offset cost of living crisis

0

According to a national survey of UK businesses, a fifth of companies offer their staff additional benefits such as vouchers, free parking and travel subsidies to help reduce the cost of living, but most don’t. ‘always only offer wage increases below inflation.

According to a survey carried out for the Financial Times by the Chartered Management Institute of more than 1,000 executives of companies and public sector organizations, only one in 10 said they had offered a salary increase of more than 5% to their staff this year. A similar number had offered no base salary increase.

A third had offered wage increases of 3 to 5 per cent, with a similar number below that level.

Inflation as measured by the consumer price index rose more than 10% year-on-year in September, crushing many households as wage growth remains relatively weak.

Businesses are under pressure from their staff to raise salaries to match the costs they face at home as the price of groceries and energy skyrocket ahead of winter.

Some employers also offer one-time bonuses or cost-of-living payments.

PwC told staff on Thursday that those earning £50,000 or less a year would receive special payments of between £1,000 and £1,500 spread over the next five months to help with the cost of living. The payments will go to around half of the company’s 24,000 employees and anyone on a salary of £40,000 or less will receive the full amount.

“Given the exceptional economic environment, additional and targeted support seems like the right thing to do, and we know many of our clients are doing the same,” said Kevin Ellis, Chairman and Senior Partner at PwC UK. United.

PwC and other professional services groups have announced above-average pay rises this year, with some companies bringing forward their usual pay rises. Deloitte told staff this month they could opt to receive additional cash payments instead of the company’s usual contributions to their pensions.

Other companies offering one-off payments typically between £300 and £1,000 include Amazon, Aviva, Grainger, John Lewis, homebuilders Barratt and Taylor Wimpey and banks such as Nationwide and Co-operative. Virgin Media O2 will give £1,400 to employees earning less than £35,000.

However, the CMI survey showed this was still not the norm, with only a tenth of those surveyed being offered one-off cost of living payments.

Twice that number said they were trying to help by offering benefits such as shopping vouchers and travel grants. John Lewis, for example, is also offering free food to all workers until January 6 to help with the cost of living. Aviva has waived parking fees for its staff.

“The compression of real incomes is hitting millions of households. Businesses are also feeling the pressure. We are seeing many employers come up with innovative ways to mitigate the impact of the current situation on their employees beyond base pay, such as cash rebates on purchases and one-time in-year payments,” said Anthony Painter, Policy Director, CMI.

“Overall, however, there is a sense of confusion about what everyone hopes will be the worst of the crisis. We are still far from out of the woods.

Large organizations were found to be more likely to offer base salary rewards than their smaller rivals, the CMI found.

If salary bonuses were offered only to some employees, it was more often in the private sector than in the public sector, while additional salaries and benefits were also offered more often in the private sector than in the public sector. audience.

Share.

About Author

Comments are closed.