How can you keep staff motivated with your rewards system during a cost of living crisis?

With rising food prices and spiralling fuel costs, many employees are starting to feel the financial pinch. Having already seen people withdraw £801m in personal cash from post offices in July, the most since records began five years ago, people are literally counting every penny.

The problem is that companies are affected too. With increasing expenditure, customers cutting back, and even the cost of transitioning to hybrid, many find themselves unable to increase salaries across the board, and certainly not in line with inflation currently sitting in double figures.

Although our studies show that to keep employees engaged it’s important to make money a non-issue, the reality is that currently it *is* an issue with companies struggling to provide what employees want, indeed need.

As a result, an increasing number of employees, driven by a need to secure a bigger pay-packet to keep ahead of the rising costs, are seeking employment elsewhere. Indeed, a survey by CV-Library, revealed that 75.1% of UK professionals are considering a new job purely because of the cost of living. 

Even those not currently looking elsewhere are still being asked to perform at the same level for what is essentially less money in real terms. Not to mention that with cost of living concerns hanging heavy over many employees, it’s understandable if their mind isn’t fully on their job.

Now, more than ever, companies need to be delivering a considered employee experience that not only increases the likelihood of keeping a workforce motivated but keeping a workforce full stop. As important as money is, especially in the current crisis, studies prove that it isn’t everything when it comes to keeping employees engaged and inspired.

Situational, emotional, motivational 

For those companies with a rewards catalogue as part of their recognition offering, there’s an opportunity to not only ease some of the worries facing employees but also make sure they continue feeling motivated, valued, and heard at a time when reassurance and a sense of belonging are vital.

It’s true, a catalogue won’t pay the bills, but it can help ease the financial burden and, more importantly, keep employees energised and inspired. With people now facing a different - and more difficult - set of circumstances, tougher budgetary decisions may be needed as they cut their cloth accordingly. When the cloth in question often isn’t big enough in the first place, there’s every chance that priorities need shifting.

In the coming months, how rewards are communicated to employees needs doing carefully, strategically, and sensitively. Although aspirational rewards remain a powerful motivator, a shift in priorities calls for a shift in messaging too.

If companies want to emotionally engage employees and encourage them to earn and spend points, it’s important to promote rewards that resonate right now that they’ll remember. After all, in challenging times the feelgood factor of a treat can really lift the mood.

• Activity alternatives - allows employees to continue with activities they may have sacrificed. For example, offsetting a cancelled gym membership with home workout equipment.

• Occasional options – gives the flexibility for employees to source special gifts for their loved ones and feel great about what they’ve been able to gift them.

• Everyday items – allows the opportunity for employees potentially spending more time at home when funds are tighter to update/replace more essential household goods to elevate everyday living.

• Wellbeing wish list - gives employees access to rewards that are good for their body and mind, especially important at a time when faced with financial pressures.

• Desirable distractions – offers employees a welcome break from the worry of the times, giving employees the chance to take trips away or redeem a memorable experience.

• Charitable choices – ensures those wishing to make a difference can continue to do so, even if the cost of living is pinching on their disposable income.

So, whilst cash rewards can and will provide respite for many, the power of tangible rewards shouldn’t be overlooked.

One of the biggest benefits of a tangible reward offering is its ability to remove money from the conversation and allow individuals to redeem items without the additional justification that comes with a cash purchase. Through an extensive selection, individuals can align their hard-earned points to the rewards that will mean the most to them in that moment.

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Global Rewards Marketplace