A recent global study found that British workers could be tempted to join a new employer with a pay rise of just 5.3%. This highlights the need to keep employees engaged, motivated and appreciated in order to improve their loyalty. Many employees have been asked to work longer hours and take on more responsibility without being rewarded. This has lead to many feeling tempted to move companies for a slightly better salary.
Losing a good employee due to pay is likely to cost you more in replacing them, than a raise would’ve amounted to. Your business will suffer from a loss of productivity and recruitment fees. Furthermore you may end up having to offer a larger salary to recruit a replacement and to stand out from your competitors.
Although the economic situation is improving, many companies still cannot afford to give their employees pay rises. At Recruitment Genius, we have provided a few alternatives for you.
Cashback cards such as the MySpree card can be used to offer your staff savings and discounts. These are neither debit nor credit card. Employees simply load money onto the card before using it as a cash alternative online or in participating stores.
When employees use the card at selected retailers they earn cash back. This is credited directly back to their card the next time they top up. Employees can then use the cashback to spend how they wish.
The MySpree Card enables staff to get cashback from stores such as Argos, River Island, Waterstones, Sainsbury’s, Pizza Express, plus many more.
Savings earned through the MySpree cashback can equal to a 2% pay rise alone.
The term ‘total rewards’ can also encourage employee loyalty. This refers to the total package which includes pay, benefits and career development opportunities. You could offer benefits and rewards that appeal to them and their individual circumstances. Benefits may include staff discounts, vouchers or gym memberships. By finding out what motivates and engages your employees you can encourage employee loyalty.
For many, employee benefits are one of the main reasons why staff choose to stay with your business.
Communication with your employees is key in order for your schemes to be successful. It could be vital in making your employees think twice about leaving your company. To boost loyalty you need to be clear on what your employees can gain from staying.
Though salary and employee benefits are not the sole reason for staff to look elsewhere, you need to ensure these factors are not overlooked. You need to consider the impact of employee loyalty within other aspects of the company. This may be working hours, working environment, training and recognition. Therefore perks such as extra annual leave or early finishes on a Friday could be just the incentive needed to keep staff from looking elsewhere.