Cost of living crisis has resulted in having to consider pay benchmarking
Research has shown that the cost-of-living crisis is high on the agenda, resulting in employers who are being forced to consider how they can attract and retain talent without having to consider pay increases.
Nearly half of directors admit they have set pay awards higher than originally planned to help attract and retain top talent and keep up with the rising cost of living. For some employers, this money has been saved from reducing office space to reduce overheads, for others, spending less on technology and innovation. However, 63% of directors surveyed admitted that with operational and business costs on the rise, salary increases are not always going to be possible in the current market.
Over half (52%) of organisations are putting measures in place to actively help employees with the cost-of-living crisis. 56% have granted members of staff a non-repayable lump sum or bonus payment to help manage rising costs. As these payments are not consolidated into salaries, this can help employees without having to carry the additional cost on an ongoing basis. A quarter of employers say they have offered staff an interest-free loan.
The research also found that 53% are conducting regular pay benchmarking to determine that their pay and benefits are commensurate with their industry and geographical location and importantly, that they compare favourably with their competitors.
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