The price of food has been a headline over the past few months. And despite inflation finally beginning to fall, the average annual grocery bill is still £833 more than a year ago. Against this backdrop, it’s sadly no surprise we found nearly two fifths (38%) of workers are spending over a quarter of their monthly income on food shopping.

This period has provided employers with an opportunity to revisit how they recognise their people and the challenges they face in building an employee value proposition which stands out not only during crises, but also once they’ve passed.

Time to step up

We’ve all felt the pinch over the past year, but the continued economic uncertainty is hitting many of the country much harder than first anticipated. Our research found that over a quarter (26%) of employees have been severely affected by the increase in food prices. Meanwhile, 22% are worried about their ability to pay their bills and other life expenses because they’re spending more on food shopping.

With these pressures clearly taking their toll, it becomes more difficult for employees to fully engage with their day-to-day role. A survey of UK managers and team leaders from the Chartered Management Institute, found 71% had seen evidence of the cost of living crisis increasing stress and anxiety for their teams. And of those managers, 93% said it was affecting employees’ productivity. Given the impact on the workforce, it may not be surprising that our research found 73% of workers believe employers should help ease the cost of living pressure they’re facing.

It should go without saying that employers should be caring for their workers’ wellbeing whatever the circumstances. However, the past few years have highlighted how important it is to do so, and the consequences for not. This is why creating a reward offering which supports your people both financially and mentally will ensure they feel supported, appreciated, and able to do their best work.

Showing meaningful support

Salary increases are of course an option for employers wanting to demonstrate they value their workforce, but the current economic climate means businesses can’t always offer them. However, demonstrating support isn’t limited to this. Rewards can also make people’s salaries go further with perks that lighten the load on their wallets.

For example, with rising food costs, subsidising either partly or entirely employees’ supermarket shopping is one clear way to make a meaningful impact.

But business leaders should also acknowledge that with greater amounts being spent on food, there is less available to enjoy the activities which bring moments of respite and joy outside of work. Our research found over a third (34%) now miss spending time doing the activities they enjoy.

Of course, what those activities are will vary from person to person, which is why offering choice is key. This has become even more significant as workforces become dispersed across countries and continents.

Whether it’s discounts on gym memberships or hotel vouchers, employees should have the freedom to choose the rewards that provide the greatest benefit to them and their individual circumstances. In fact, we recently conducted a survey of over 17,000 employees, and a resounding 87% said it was important they could choose their own rewards, as opposed to their employer choosing for them.

Outside of rewards, employers can also offer financial education. At a basic level, you can signpost them to public information resources — for example Government backed bodies or financial assistance charities. Or you can go further and offer access to professional financial advisers as part of your benefits package. This allows people to get help that’s relevant to them.

Both approaches contribute to a diverse and varied offering which can be tailored to each of your employees’ needs.

Thinking forward

As the battle for top talent continues to be tightly contested, a business which clearly demonstrates it’s committed to supporting its people is more likely to stand out. Yes, salary is likely to be an important factor in recruitment and retention, but the wider employee value proposition, and the culture you create, is becoming more and more significant. It is central to attracting talent and reducing attrition.

The cost of living crisis has put a magnifying glass on this issue. But even once it’s passed, the expectations employees have will remain. Therefore, the actions taken during this difficult period will provide the foundations of an employee value proposition that is successful in the long run — not just in times of economic uncertainty.

Those who take steps now to build a supportive and appreciative culture for their people, no matter where they are, will ultimately strengthen their ability to become an employer of choice.

Gautam Sahgal, CEO, Perkbox