How to mitigate the
the long-term effects of low pay
Employee benefits can bridge the gap between low pay and employee engagement. Find out more.
Salary is often a large motivator when it comes to engaging employees in the workplace. When an employer doesn’t offer competitive salaries, there can be many long-term effects. Employee benefit providers can bridge the gap and make a difference in engaging and encouraging your employees. They are often cheaper than offering higher salaries and thus, are more viable for many businesses.
How can low pay affect my business?
Low pay can affect your business in several ways. Firstly, you can expect reduced business attraction and retention. When your workforce and potential new recruits can receive much better compensation from other businesses, they are not likely to want to stay at, or begin working for, your business.
As well as this, low pay is likely to lead to reduced employee wellbeing. When your employees worry about their finances, their financial wellbeing will be impacted which may lead onto other issues.
Also, you can expect reduced employee engagement and employee productivity. A study by Gallup found that disengaged employees are 45% less productive, and financial worries will impact productivity as employees feel less engaged.
How can I mitigate these effects?
You can mitigate the effects of low pay through personalised rewards which offer employee savings and support employee wellbeing.
Personalised benefits that supply employees with rewards that they desire will increase engagement and productivity at work. Online platforms such as Smart Hive, can gather data about what benefits your employees want. This allows businesses to get the best value for their budget while driving higher productivity.
Also, employee benefits that save employees money such as car leasing or cycle to work schemeswill bridge the gap in employee pay. As these schemes are paid through salary sacrifice, both you and your employees will make savings.
You can also provide employees with savings through exclusive discount schemes where employees gain access to vouchers for various retail stores, travel outlets and restaurants. In their client brochure research of 2018, BenefitHub found that employees will save over £100 through these discounts.
It is also beneficial to mitigate reduced financial wellbeingthrough employee assistance programmes and finance wellbeing schemes. These benefits provide employees with information and support surrounding their finances.
Ensure your employees feel appreciated, engaged and happy at work through our employee benefits.