As the summer of discontent continues, with reports of staff strikes hitting the headlines almost daily, it is hardly surprising that pay appears to be high on many employers’ agendas. This week alone, employers including Network Rail, Port of Bristol and Lufthansa have resolved pay disputes with staff accepting offered pay increases.
In many cases, employees’ pay demands are inextricably linked to the rising cost of living, with both workers and unions arguing that increases should keep pace with the rise in costs. In response, a number of organisations have made one-off cost-of-living bonus payments or implemented cost-of-living-related pay increases to help support their employees. Tesco is one of the latest employers to do so, giving around 2,400 distribution centre employees a 9.5% pay rise in order to help them manage the current cost of living.
Research published this week by Wagestream found that 96% of workers say that living costs have noticeably risen, with 70% now worrying more about money and 76% stating their mental health is declining as a result. Reflecting the news stories Employee Benefits currently covers on a weekly basis, some 80% of the employers surveyed have introduced some form of financial support for employees since the beginning of the year.
As we head towards the autumn and winter, with energy costs predicted to rise even further, this is likely to become even more of an issue facing employers. With businesses also facing rising costs, however, how far are budgets likely to be able to stretch when it comes to supporting staff? If this looks set to be a long-term issue, does it require a rethink of overall pay and benefits strategy if organisations are to be able to continue to attract and retain the talent they require?
Debbie Lovewell-TuckEditorTweet: @EmployeeBenefits
