Employees are demanding more from their pay and benefits package in an increasingly competitive market.
New research from WorkLife by OpenMoney found 73% of SMEs are experiencing higher employee demand for benefits, with 32% expressing a need for increased flexible working options, while 27% want more training and development. Just over a fifth (23%) are seeking greater support for mental wellbeing.
Other popular options were payroll loans (16%), cycle to work schemes (14%) and green benefits (13%) such as electric vehicle purchase schemes.
The research also showed that one in three firms had been approached by their employees with concerns as to whether their current salary will cover their outgoings amid rising inflation.
WorkLife by OpenMoney said many firms were struggling to meet growing employee expectations. Of the 28% of firms who said they were struggling to recruit, more than a third (36%) cited the cost of rewarding and incentivising employees as an issue, while 34% were concerned about meeting salary demands.
Steve Bee, director of WorkLife by OpenMoney, said: “It comes as no surprise to see employee remuneration and reward on so many SMEs’ minds in the current environment. Given the clear impact that recruitment challenges are having on UK businesses as a whole, establishing the right approach is crucial. But with such a wide range of benefits and support being requested by employees, deciding where any spend will have the most meaningful impact may feel daunting, particularly for those firms under financial pressure.
“At a time when rising costs may impact companies’ ability to increase salaries, there are a number of cost-effective benefits and training and development options that can motivate existing staff and entice new joiners – while also fostering a loyalty and commitment to the company as recovery continues.”
