blank
Connect with us

Money

64% of Wales employees set to leave due to cost of living

Published

on

couple talking while moving in new apartment

During the biggest cost-of-living crises most people will have ever experienced, only 6% of employees in Wales believe their employer is doing enough to support them through the crisis.

Even though staggering 72% believe their employer has a responsibility to support them through the current climate.

That’s according to new research from Blackhawk Network, which says that according to employees, employee benefits are no longer just added incentives, they are now a way for employers to support their staff.

Advertisement

It says it’s now essential employers are informed on what employees want and ultimately need from benefits schemes to help guide them through the cost-of-living crisis.

Other key findings in Wales show 94% of employers agree that they have a duty to support their employees as the cost-of-living rises, with 79% of employees saying employee benefits play, or could play, an important role in improving the cost-of-living 

Almost two thirds (64%) would leave their current job in order to find an opportunity that provides better financial support during the current cost-of-living crisis. 

The findings come from research conducted by Blackhawk Network in conjunction with Sapio, to support the launch of its new Blackhawk Network Extras Benefits Platform.

Workplace benefits are hot property at a time of crisis  

Advertisement

According to the UK-wide data, 85% of employers agree that they have a duty to support their employees as the cost-of-living rises. While raising wages might seem a simple fix, businesses are also impacted by rising costs and inflation making pay increases unviable. But that doesn’t mean there’s nothing they can do to help. 83% of employees agree that workplace benefits play an important role in helping to balance finances as the cost-of-living continues to rise; and 95% of employers agree.

It is telling that almost a quarter (24%) of employees admit they’ve already used their benefits package more during the cost-of-living. In addition, almost three quarters (73%) of employer’s state that prospective employees are looking for employee benefits as part of the solution to the crisis.  

Employers must dial-up on support to have real impact  

The report says that dialling-up cost-of-living support through employee benefits is a must when talent is at risk. For example, salary sacrifice, where employees are offered the option to pay for services or products from their salary before they receive it to reduce tax, can be found with offers such as Cyclescheme, on technology or gym memberships, to save money that would otherwise eat into pay. However, there are still barriers to overcome.

When employees were asked what the term ‘salary sacrifice’ meant, almost three quarters (73%) admitted they did not fully understand it, including 18% who had not idea at all. In contrast, to almost all employers (98%) believing employees understand it to some degree. There is a clear disconnect between the employer and the employee, yet salary sacrifice can save employees money and help in mitigating the effects of the cost-of-living crisis. 

Advertisement

If employers want to support employees, they need to make information about benefits, like salary sacrifice, more accessible and digestible to prove that it can have a real-life impact on their current financial situation by making their pay go further.

Over half (53%) of employees say they would be more likely to use salary sacrifice schemes if they had a better understanding of how they work. But this is an issue that only employers can fix. Better communication is essential to close the perception gap on employee benefits to be the support employees want and need during the cost-of-living crisis. 

Chris Ronald, VP EMEA Incentives & Operations at Blackhawk Network said: “It is becoming increasingly clear that employers have a vital role to play supporting their employees during the cost-of-living crisis. But the rising costs also mean that businesses are unable to offer blanket wage increases.

“Our research takes an in-depth look into the current state of employee benefits and the perceptions of the employees who are in a position to use them. With the release of this research, we hope to give businesses the tools they need to improve their benefit packages so they continue to support staff throughout the crisis.” 

Advertisement
Advertisement
Click to comment

Leave a Reply

Advertisement
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement

Trending

Copyright © 2022 Swansea Bay News