Total pay, including bonuses, increased by 2.3% in Great Britain between July-September 2015 and July-September 2016, according to the Office for National Statistics (ONS). However, the cost of living also increased, so savings per head have been negligible among lower earners. This is why it’s important for employers to maintain or introduce reward schemes to show their staff that their companies really do value their contributions in the work place.
“Rewarding those that work hard and show loyalty to your company need incentives and recognition because, despite of the rise in the minimum wage, for a lot of workers on the front line the extra pay will be absorbed by inflation. Rewards and recognition give organisations the opportunity to ‘bolster’ the wage rise to show that there are very good reasons to stay loyal and put in your best work beyond a solid wage,” said Bill Alexander, CEO of Red Letter Days for Business.
“With analyst and economists forecasting increased uncertainty in the marketplace since leaving the EU, and The Bank of England expecting a rise to 5.5% in inflation once the full effect filters through, while the average wage rises, prices are rising too, which is likely to erode employees’ purchasing power. Now is the time to recognise those that excel in their positions and to reward your employees beyond cash – giving a reward that provides choice, appeals to a diverse workforce and creates memories that extend beyond the reward itself are key to keeping motivation, moral and appreciation levels among employees high,” added Alexander.
While you can never underestimate the power of a simple thank you, recognition initiatives are also helpful components in the make-up of managing a successful and effective workforce. Experiences, store vouchers and days out are all more memorable than cash bonuses that tend to get absorbed by ‘day-to-day’ obligations such as household bill payments and debts. So, while it looks like a good thing that the minimum wage has risen, it’s again being outrun by the cost of living in the UK. So one effective solution is to invest in a suitable incentive drive that suits your work complement.