Two-thirds of workers are thinking of changing jobs to earn more money as employers struggle to keep up with inflationary pay rise expectations, according to a new study.
As the cost-of-living crisis continues to hit incomes, UK employees are largely dissatisfied with their earnings.
Research by household bills manager Nous.co found that two in three employees in the private sector feel overworked and underpaid.
For businesses finding that staff are willing to forgo loyalty in favour of a higher salary, offering high-quality benefits is central to attracting and retaining staff – and data suggests this is a key motivator for workers.
An overwhelming 86 percent of staff say workplace benefits are important to them when it comes to staying in a job or accepting a new one.
Among the top benefits employees want are:
1, Discounts/help with household bills 27%
2. Free food at work 27%
3. Health and dental insurance 26%
4. Life insurance 25%
5. Retail discounts 21%
Workplace benefits are more important to younger workers
Companies looking to secure the best up-and-coming talent need to offer generous workplace benefits to attract and retain Gen Z workers, new research has found.
In signs of a big generational shift, Gen Z — those aged 27 and under — are more than twice as likely as over 55s to say attractive perks are important to them when it comes to looking for and staying in a job.
The study by household bills manager Nous.co found three-quarters of these younger employees consider non-salary benefits to be very or quite important, compared to less than half of 55-64s.
Greg Marsh, founder and CEO of Nous.co said:
“The cost-of-living crisis is driving up workers’ day-to-day costs, but most firms don’t have the money to fund pay rises in line with inflation. This is a knotty problem for HR departments who want to attract the best talent, and support their staff who are being pummelled by the cost of living crisis.
“Our research shows just how crucial workplace benefits can be in solving the problem. Perks are an important factor to the vast majority of workers and offer employers a cost-effective way of supporting their staff.”
“It is crucial for companies to be able to attract strong Gen Z workers. Our research confirms what we’ve long suspected: employee benefits are now an essential part of this.
“This generation is perfectly willing to move around to get what they want. High-quality perks have to be part of the package on offer in order to both recruit and retain innovative younger employees.
“It makes sense for employers too. Offering strong benefits outside salary is a cost-effective way to attract and retain the next generation of leaders.”
Amelia Brand is the Editor for HRreview, and host of the HR in Review podcast series. With a Master’s degree in Legal and Political Theory, her particular interests within HR include employment law, DE&I, and wellbeing within the workplace. Prior to working with HRreview, Amelia was Sub-Editor of a magazine, and Editor of the Environmental Justice Project at the University College London, writing and overseeing articles into UCL’s weekly newsletter. Her previous academic work has focused on philosophy, politics and law, with a special focus on how artificial intelligence will feature in the future.