REWARD
So, over time, increasing rates can pay for itself. However, to raise wages sustainably, we need to increase employee productivity through improving the design of work, jobs and the organisation. More information on this is available here: https://bit.ly/3qmNCwN, and The Living Wage Foundation’s website is here: https://bit.ly/3qmNIo9. Hours are also important. A decent hourly rate won’t always protect people from poverty if they can’t work enough hours. Employers should offer enough to allow staff to get the income needed for an acceptable standard of living. We should identify and remove barriers preventing people from working the hours necessary to meet their financial needs. Being paid fairly is also important. We can show pay fairness in several ways, including: ● being transparent about how wages are set ● telling people how they can get a pay rise ● ensuring job vacancies advertise salaries ● ensuring pay outcomes and processes are fair – such as, by checking the reasons for pay gaps. To raise wages sustainably, we need to increase employee productivity through improving the design of work, jobs and the organisation In-work progression People need a clear path to follow, access to the right training and a supportive line manager. For example, we can help by: ● promoting a culture of life-long learning and showing people of all ages and career stages a clear path to progression if they want it ● investing in targeted training and development to help people fulfil their potential, regardless of their age, disability or other factors ● providing shadowing and work experience schemes aimed at low-paid workers to help expose them to a variety of different roles and opportunities throughout the organisation.
With competition for talent so intense now, these things are often simpler and more cost-effective than recruiting new people to plug skills gaps. Also, those investing in their people should enjoy improved staff retention, loyalty and commitment. Those investing in their people should enjoy improved staff retention, loyalty and commitment Financial well-being benefits JRF research finds low earners attach greater value to those benefits that reduce their highest living costs, namely housing and utilities, child / eldercare, travel and food / leisure. So, it makes sense to look at benefits that help do this. This could include providing such benefits as: ● rental deposit schemes ● aiding access to the government’s tax-free childcare scheme ● travel season ticket loans ● shopping discount vouchers. In addition, many employers now offer low-waged workers: ● occupational sick pay to enable them to take time off when ill without risking their livelihood ● crisis loans to help them deal with unexpected financial shocks ● the option to choose how frequently they’re paid to help them better manage their money ● alerting them to financial scams to help protect their finances ● financial awareness programmes to help them make more informed decisions. However, it doesn’t matter how great your benefits package is if people don’t know about it, so we should make sure we remind them regularly about what’s on offer, how it could help them and how to get it. Policy benefits Having a policy aimed at improving the financial situation of workers should make it easier to communicate what you’re doing and why, as well as assessing its impact. CIPD research shows that employees who say their organisation has such a policy are far more likely to report that their employer also communicates to them about its
pay and benefits than those who don’t have such a policy. Unsurprisingly, staff in organisations with a policy are more likely to value the pay and benefits on offer and are more willing to ask for help if they have money problems. This research is available here: https://bit.ly/3RyTXRz. However, we should consider how to tailor our communications according to employee circumstances, such as age, pay, comfort with digital media, etc. Some things you can do now While some of what I’ve mentioned could involve getting sign off from the board, there are some quick wins. Staff could be missing out on some employer benefits, so check their awareness. Similarly, they could be missing out on state benefits, so help them identify and apply for the appropriate ones. You don’t want low-waged people sacrificing their pay or training just so they can work flexibly. Flexible working is more than home or hybrid working, it includes flexitime, term-time working and job sharing, so we should explore all options. Also, cut travel costs by allowing those who use public transport to commute off-peak. Encourage people to be open about their money worries – the earlier they ask for help, the easier it is to assist. The Money and Pension Service’s (MaPS’) Talk Money Week is an opportunity to start the conversation next month. The MaPS website is available here: https:// bit.ly/3Uad7PF, and additional information specifically about the Talk Money Week can be found here: https://bit.ly/3eDypEG. You can get also get an idea of financial concerns through surveys or workshops. You can then use this to highlight sources of potential help, such as your employer assistance programme, your benefit provider, Citizens Advice or Money Helper. Access the Money Helper website here: https://bit.ly/3KZQKrM. Spiralling inflation has consequences for both employees and employers. HR and payroll professionals can help by reviewing all the options that organisations have to promote financial well-being, some of which, such as signposting to sources of information or guidance, are relatively inexpensive. However, to improve financial well-being long term through higher pay and benefits, we need to raise employee productivity through improved work, job and organisational design. n
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| Professional in Payroll, Pensions and Reward |
Issue 84 | October 2022
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