A recent survey by PricewaterhouseCoopers (PwC) found that over eight in ten employers are awarding pay increases and one-off bonuses to support their employees during the cost of living changes. Conversely, the survey also uncovered a skills shortage, with one in five workers saying they intend to leave. So, talent retention is also a priority.

However, not every organisation can provide that level of financial support. Instead, you could offer staff shopping discounts, home insulation support, pay for their broadband, and even ‘trivial benefits’ like gift cards. Check with your accountant about tax and national insurance liabilities on these types of additional payments.
 
There are other ways to support and retain your employees without resorting to the risky process of ‘fire and re-hire’, or redundancies which should be an absolute last resort. A more flexible, innovative approach is needed to help retain your talent.

Changes to the Real Living Wage (but not the National Living Wage or National Minimum Wage)

Rapidly rising inflation prompted the Living Wage Foundation (LWF) to bring forward its annual announcement of the 2022-23 Living Wage rates to September.
 
If you haven’t already done so, your employees’ hourly rates should be increased by £1 to £10.90 across the UK and by 90p in London to £11.95. This provides the largest year-on-year rise since the RLW scheme was set up, not to be confused with the Government’s National Living Wage, which tends to be lower.
 
The CIPD warns that even these increased rates may still not be enough to improve financial conditions for lower-paid employees with the rapidly rising cost of living. Make sure you keep talking to your employees to find out how they are coping.