Tag: Rewards and Benefits

1.3m UK SMEs have lost talent in 2022 because employees feel undervalued.

Twenty-four percent of UK SMEs have lost undervalued talent in the past 4-6 months, according to research commissioned by digital gifting company Prezzee.

The research also revealed that in organisations of more than 250 staff, 4 in 10 HR Directors have changed or are looking at different ways to reward staff – regardless of where their staff work.

Even with the Great Resignation, 35% of SMEs admitted that employees get the same rewards, regardless of location, job title, or other contributing factors. This, despite differing hobbies and passions. Furthermore, the budget for rewarding staff isn’t used to its full potential as 66% said their team didn’t attend events or rewards weren’t received how they would like.

When looking at why so many employees don’t engage with reward schemes and events, the research showed that 80% of HR Directors don’t understand their employees’ interests well enough.

The data also showed that there is too much pressure solely on the shoulders of HR Directors to get this right. For example, only 16% of SMEs have created teams of employees at multiple levels to decide the rewards and incentive strategy to increase happiness and staff retention.

James Malia, UK MD of Prezzee, said: “When times are tough, as they undoubtedly have been over the past two years, reward and incentive strategies are more important than ever. They’re a clear way to showcase how highly a company values its staff and as our data reveals, when not done well it directly results in people leaving for greener pastures.

“It’s therefore important that businesses are doing everything they can to support employees during the cost of living crisis. It doesn’t need to be a huge change in strategy either, the trick is to offer personalised rewards and incentives regularly – rather than making people wait a year for bonuses. It’s then that people will realise quite how highly businesses value them, especially when these incentives come at a time when money is tight, as it is for many during the current cost of living crisis.

“Times of financial difficulties can be hard to open-up about, especially within the place of work, so HR and line managers need to be one step ahead of their employees.

Indeed, the future of loyalty incentives should revolve around personalised, thoughtful rewards that highlight how much businesses care about their employees. Those companies which change their ways now will find themselves in a much stronger position come 2023.”

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18% of employees will take a pay-cut to work for an NPO 

According to Aviva’s recent How We Live report, almost two thirds of workers (64%) would consider taking a pay cut if a new role offered other benefits with more than a fifth of workers (22%) stating they would think about taking a lower salary if they had the option to do hybrid working, while almost a third (31%) would do the same if they were able to choose flexible working hours. 

Almost a fifth of workers (18%) reported that they would be prepared to take a wage cut if they were going to work for a charity or not-for-profit organisation and 15% would do so if the company had strong environmental credentials. This view is higher amongst under-25s, with a quarter of people in this age group saying they would consider a lower salary for these reasons. 

Aviva’s previous How We Live report (November 2021) discovered two thirds of employees intend to make changes to their careers in the next 12 months. 

Aside from potential pay-cuts, the study found that around three fifths (58%) of UK workers would consider changing their current role for a “greener” career. 

The study suggested that this attitude is more prevalent in some sectors than others, with workers in finance and engineering / building among those most likely to hold this view at 70% in both cases. 

Industry   Percentage of workers who would consider switching to a “green” career 
Finance  70% 
Architecture, engineering and building  70% 
IT and telecoms  69% 
Legal  64% 
Manufacturing and utilities  63% 
Healthcare  58% 
Education  58% 
Retail, catering and leisure  57% 
Travel and transport  54% 

Green schemes in the workplace 

However, there is increasing evidence that employers are becoming greener with three quarters of workers saying their employer has made changes to improve its environmental impact in the last five years – although 75% of people within this group feel there is still more to do. 

More than a fifth (21%) of workers say they are already participating in initiatives to make their employer more environmentally-friendly, while an additional 50% of employees would like to get more involved in this area. 

The report also reported welcomed news regarding the uptake of existing “green” schemes with current employers with the majority of employees saying that their organisations offer some initiatives aimed at reducing their impact on the planet, ranging from cycle-to-work programmes, to removing single-use plastic from workplaces, to electric vehicle leasing schemes. 

 

Workplace scheme for employees  Percentage of employees saying scheme is offered at their workplace  Estimated number of UK employees able to make use of such a scheme*  
Cycle-to-work / bike loan scheme  68%  22.1 million 
Subsidised public transport / loans for transport season tickets  60%  19.5 million 
Removing single-use plastic from the workplace  77%  25 million 
Paperless office  71%  23.1 million 
Vegan / vegetarian options in workplace canteens  70%  22.7 million 
Hybrid / remote working (to reduce commuter pollution)  67%  21.8 million 
Making use of video calls to reduce unnecessary travel  79%  25.7 million 
Using refillable cups for drinks  85%  27.6 million 
Volunteering through environmentally-friendly workplace schemes  60%  19.5 million 
Electrical vehicle (EV) leasing scheme  55%  17.9 million 

Jon Marsh, MD, Partnerships, Aviva General Insurance says:“Sustainability is very much on the radar for businesses large and small and it is positive news that so many UK people are bringing green thinking into their working routines, as well as their personal lives.  

“The latest How We Live data shows that a great many employees are already involved in environmental initiatives in their workplace – from simply re-using cups, to limiting unnecessary travel, to making use of electric vehicle leasing schemes.   

“Three quarters of workers acknowledge that their employer has made environmental progress in the past five years – but they want to do more to make a difference. This could mean actions taken in a current role or switching to a position with a more environmental focus – but the emphasis on green career ambitions is clear.” 

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The quest for ‘meaningful work’ is the most important factor in choosing a job, according to a new survey by leading financial recruitment company Core-Asset Consulting.

In a survey of professionals working across the financial, accounting and legal sectors in Scotland, people were asked to rank the importance of eight factors in choosing a job.

Key findings:

  • ‘Meaningful work’ was most frequently ranked as the top reason in people choosing a job
  • ‘Pay & benefits’ was the most commonly cited 2nd, 3rd and 4th factors
  • ‘Flexible working’ was most frequently cited as the least important factor

Factors:

  • Career progression
  • Company reputation
  • Location/length of commute
  • Flexible working
  • Meaningful work
  • Pay & benefits
  • Work-life balance
  • Working culture

Commenting on the survey, Betsy Williamson*, Managing Director of Core-Asset Consulting, said:

“It may come as a surprise to many that ‘meaningful work’ is the most common number one factor in people choosing a job, particularly as this is a survey of financial, accounting and legal professionals.

 

“But however you interpret the term ‘meaningful work’, it seems clear that white collar professionals are now seeking much more from their career than material rewards. The implications for employers is far reaching.

 

“To retain valuable employees, companies need to clearly articulate the driving purpose of its firm beyond the simple pursuit of profit, and how a particular department, team and individual fits into this bigger picture. This can include things such as the creation of a financially secure future for customers, tackling environmental issues and transforming local communities.

 

“Failure to do so not only means employers will have staff retention issues, they will also struggle to attract the very best talent.

 

“It’s very much a candidate-driven market now – particularly in hard-to-fill areas such as risk and compliance. Companies that recognise the importance of ‘meaningful work’ will do better in attracting and retaining the best people.

 

“But all this comes with a caveat: ‘over-selling’ roles comes with a similar risk of creating disillusioned employees. A delicate balance must be struck between aspiration and authenticity.”

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