Maximizing Your Total Reward Offering to Address Cost of Living Challenges
An uncomfortable truth in modern workplaces is the prevalence of in-work poverty. This now affects more than just low-wage earners. According to the latest figures from charity Barnardo’s, a quarter of children in UK primary schools are living below the breadline. Sadly many families struggle to afford the bare essentials leading to issues such as food and fuel poverty.
According to the Joseph Rowntree Foundation’s Minimum Income Standard for the United Kingdom in 2024, the average income requirements for basic living standards are:
● £28,000 a year for a single person.
● £69,400 combined annual income for a couple with two children.
These figures reflect the minimum socially acceptable living standards in 2024 and surpass both the National and Real Living Wage.
In 2022, the CIPD stated that some employment practices can leave 1 in 8 working people out of pocket and trapped in poverty.While acknowledging that the solution doesn’t solely rely on employers, and is not resolved instantly with increased salaries, I do agree with Charles Cotton that employers have an important role to play in helping working people escape poverty and get through challenging times.
How can organisations help beyond salary increases?
● Ensure a fair and robust compensation framework is in place: Manage compensation effectively to ensure fairness.
● Provide financial wellbeing and education: Help employees make informed financial decisions and maximise savings.
● Enable flexibility with family and leave policies: Intentionally support employees through key moments such as entering parenthood and retirement.
● Create a benefits offering that supports employee wellbeing and choice: Provide benefits that cater to diverse needs.
● Signpost employees to external resources.
● Leverage your ESG strategy: Engage with communities and services that help to educate and support in the workplace.
Not sure where to start? We can help you conduct a strategic review of your current offering and make recommendations on cost-effective solutions..
