An Alternative to increasing salary during the cost of living crisis 

The cost of living crisis has created new challenges for businesses , encompassing rising inflation, housing costs, utility bills, and more. For employees, navigating these financial pressures can be daunting, leading to increased stress, decreased morale, and even thoughts of seeking alternative employment. In this landscape, traditional approaches like salary raises may not be feasible and may not provide the immediate relief and support that employees need. 

In the face of soaring living costs and rising inflation, employers are grappling with the challenge of retaining and motivating their workforce. While salary increases seem like the only solution, savvy businesses are exploring an alternative avenue: bolstering employee benefits. In the midst of the cost of living crisis, investing in a robust benefits package can offer a strategic advantage, enhancing employee satisfaction, retention, and overall well-being. Most importantly, it can do this without adding the financial stress of re-allocating funds to employee salaries. 

Enter Employee Benefits: A Holistic Solution

At Live Like Loyalty, we believe that employee benefits offer companies tools to support their employees emotionally, physically and financially. By expanding and enhancing benefits offerings, employers can provide tangible support and alleviate some of the financial burdens facing their workforce. From supermarket discounts and fuel savings to wellness programs and Telemedicine (all of which we provide), benefits can encompass a wide range of offerings designed to improve employee satisfaction and well-being.  

Consider Maslow’s hierarchy of needs a cornerstone of understanding human motivation, illustrated below, which demonstrates the variety of needs we must fulfill in order to prosper both as individuals, and as employees.  These needs are illustrated as a pyramid with the most basic of needs at the base followed by gradually more internally meaningful needs. From basic physiological needs to self-actualization, each level of the pyramid plays a crucial role in shaping a staff member’s well-being and productivity. Employee benefits at their core contribute to these most basic of needs by providing means to alleviate pressures that threaten our most basic of needs. These benefits cultivate the financial, physical and mental well-being that all staff deserve. 

Traditional Benefits: Cultivating Resilience

By providing access to exclusive discounts at local and national retailers, employers empower their staff to spend more without breaking the bank. By providing opportunities to save money through benefit discounts, employers can help alleviate this stress, creating a more focused and productive workforce. As a result of the cost-of-living crisis, financial worries are a leading cause of employee stress, affecting productivity and overall job satisfaction. By providing opportunities to save money through staff perks, employers can help alleviate this stress, creating a more focused and productive workforce. 

Healthcare perks: Promoting Peace of Mind

Here in the UK, offering comprehensive healthcare benefits can provide employees with peace of mind amid an increasingly struggling NHS service. By providing same-day and remote access to healthcare for staff and dependents, employers demonstrate their commitment to supporting employee health and wellness, which can lead to improved morale and productivity. 

But do employee benefits really work?

For the sake of full transparency, employee benefits are not the solution to the cost-of-living crisis, but they can be the make-or-break factor for many staff struggling to make ends meet. Not only that but it can make a huge difference in talent acquisition without breaking the bank by increasing salaries. But don’t take our word for it. The benefits of employee benefits have been deeply studied by a variety of independent sources. Consider the statistics below from the access group: 

of employees would choose additional benefits over a pay raise
0 %
of employees stay with their employer longer when provided an employee benefits package
0 %
of talent consider would choose on job over if it offered superior benefits
0 %

In times of economic uncertainty, it is more important than ever for employers to adopt a strategic approach to employee benefits. By investing in a comprehensive benefits package tailored to the needs of their workforce, employers can mitigate the impact of the cost-of-living crisis, enhance employee satisfaction and retention, and position themselves as employers of choice in a competitive market. Ultimately, by prioritizing the well-being of their employees, businesses can weather the storm more effectively and emerge stronger on the other side.