Reports suggest that 74% of workers feel unsupported by their employer, with the rising cost of living so far unmatched by current salaries.
A study of national statistics reports that the average family spends 93% of their combined income on living expenses, with just 7% considered disposable income for savings, emergency and unexpected costs, and treats for the family such as holidays and household purchases.
With that in mind, what is your business doing about it?
The Big Pay Gap in 2022
One of the biggest problems that has come to light in 2022, is the distinct lack in an annual pay increase that many workers across a multitude of industries are now discovering. Despite the cost of living soaring at an alarming rate, with everything from fuel to household bills and food costs all on the rise as a result of the war in Ukraine and the fallout from the global pandemic, it seems as if many companies are foregoing the pay rise for 2022 – leaving employees unsupported.
Let’s consider for a moment what this means. Retention is a core part of business growth and success, with employee priorities covering a number of areas from training and development to their working environment and, of course, salary.
When employees feel unsupported, their willingness to remain loyal to and stay at a company dwindles. This is when retention starts to drop, staff turnover increases, and employers find themselves needing to fill the gaps left behind by those who have left.
Why are businesses failing to offer pay rises in 2022?
There are a number of reasons why pay rises may be off the table in 2022, from global uncertainty to the continued fallout of Covid-19 and the impact that the lockdowns had on business income and growth. But If employers continue to pass this down to their employees by failing to keep ahead of the cost of living crisis, it seems inevitable that workers will leave those roles where they feel unsupported and seek a role in companies that are seen to be supporting their staff.
A study by CV-Library found that in a group of around 4,000 workers, 11% have been informed that they will get a pay rise this year, 8% have been told they will not be getting a pay increase, and 81% have not been told either way yet.
Which group does your business fall into – and could you fall foul of the great resignation if you are not seen to be supporting your employees and colleagues with the increasing cost of living in 2022 and beyond?