Empower employees through the rising cost of living.
Enhancing reward and recognition in the workplace
The past few years have been difficult for employees; they’ve adapted to changing work environments during the pandemic, and now they’re facing a higher cost of living with stagnating wages. As an employer in the public sector, how can you reward your workforce for their efforts and navigate budgetary pressures for your organisation?
Supporting financial wellbeing
As workers struggle with rising costs, employers must find more ways to support employee financial wellbeing within their strategy, despite having to push cost-saving initiatives and bridge spending gaps. The CIPD recently warned, pay increases cannot be sustained long-term and employers should look at other ways of supporting financial wellbeing, including enhancing their overall benefits package.
More than ever, workers are worried about the future and are looking for long-term methods to boost their financial security. A great way to show your employees appreciation is to remove some of the pressure by offering them savings schemes that they can use to make their money work harder for them, such as salary sacrifice initiatives.
A recent YouGov survey revealed that 74% of employees said they would like access to the benefits of salary sacrifice initiatives in their workplace. Financial wellbeing is a high priority for all right now, so it’s no surprise that employees are seeking the most cost-effective benefits from their employers.
There are many ways an employee can utilise salary sacrifice initiative to help with immediate rising costs in everyday life, commonly car purchase schemes; mobile phones; bikes etc. Increased pension contributions like salary sacrifice AVCs are particularly beneficial for helping protect employees’ savings against the effects of inflation.
What’s great about salary sacrifice initiatives is that you, the employer, make valuable savings too every time your employees use the scheme.
Giving your LGPS members the power to make their money work harder for them and improve their future financial wellbeing is the best way you can reward and recognise them for their continued efforts. Due to the extra Income Tax and NICs savings, a £100 contribution into a salary sacrifice AVC scheme only costs a basic rate taxpayer £68.12, an immediate 46.8% increase – now that’s a reward!