Businesses around the world have managed their way through formidable challenges due to the pandemic, and now they must contend with inflation.
Inflation is running at a 40-year high and this puts upward pressure on salaries. To hold on to employees, businesses are having to dig deep and find the budget to give employees salary increases that keep pace with the cost of living. The current rate of inflation creates several challenges for businesses. Employees are expecting salary increases, but businesses are also dealing with other costs such as rent, electricity and increased fuel prices.
Due to the much publicised “Great Resignation” since the pandemic, many firms are also dealing with a scarcity of talent. Failing to boost employee compensation may mean that more employees go elsewhere.
So, what can firms offer to their staff other than (or as well as) increased salaries? Well, the pandemic has cemented the expectation of flexible working. Perhaps your firm could offer more flexibility and more autonomy to your employees? Offering your employees the freedom to work when and where they want, with access to a physical office or place of work when needed, may be something that they would really value.
Another strategy may be to offer increased learning and development opportunities for your team. Equipping your employees with the knowledge, skills and experience to develop in their careers may be more valuable than a pay rise. Training them may also help them feel more valued and their loyalty may increase as a result.
Finally, there may be additional benefits such as healthcare, dental cover or a gym membership that you could offer your employees which they may value as much as a pay rise.
Do you have any tips for those who may be struggling to keep staff during this difficult time? We’d love to hear your thoughts over on our LinkedIn page.