UK employers are significantly underestimating the financial struggles of their workers amid the cost-of-living crisis, as revealed by a recent study.
- Only 40% of workers feel supported by their organizations, with frontline workers facing even lower support levels at 28%.
- A considerable disconnect exists between HR leaders and employees regarding financial wellbeing priorities.
- Employees are increasingly considering leaving their jobs due to inadequate financial support, highlighting a risk of heightened turnover.
- Despite existing reward and recognition programs, their perceived value and implementation fall short of employee expectations.
In the midst of an ongoing cost-of-living crisis, research highlights a critical gap in understanding between employers and employees regarding financial support needs. While 40% of UK workers feel their organizations offer some form of support, this figure drops to a concerning 28% for frontline staff. Reward Gateway’s data underscores an employers’ misunderstanding of the true extent of financial struggles faced by their workforce.
The research reveals a stark contrast in the priorities of HR leaders and employees. While 60% of HR leaders believe mental wellbeing should dominate their focus, employees place greater emphasis on financial wellbeing, with 65% prioritizing it over mental health issues. This disparity might contribute to the perception that less than half (45%) of employees feel genuinely represented by their HR departments in executive discussions.
Despite over half of HR leaders acknowledging the growing importance of supporting employees through the rising cost of living, tangible support mechanisms are limited. With 62% of employees indicating that pay increases would enhance appreciation, HR leaders face challenges, with 64% admitting difficulties in offering competitive salaries and benefits. This mismatch may explain why only 14% of organizations provide specific financial support as part of their recognition strategies.
The lack of robust financial support mechanisms poses a risk of employee turnover, as demonstrated by the past year’s trends. Over a third (36%) of employees contemplate job transitions due to unsatisfactory pay, marking it as a predominant reason for potential resignations.
Reward and recognition programs, touted as viable solutions, suffer from execution gaps. Less than half of employees acknowledge the presence of such programs, and even fewer find them sufficiently rewarding. Nebel Crowhurst from Reward Gateway emphasizes that effective reward systems should be visible and accessible, asserting that personalized and impactful financial rewards could significantly alleviate employee financial stress.
Employers must bridge the gap in financial support perception and execution to retain talent and enhance employee wellbeing.
