Employees have become more reliant on their bosses for financial support to fund their lifestyles, new data has suggested.
The study by Perkbox found that with the cost-of-living crisis continuing to stretch household incomes, there has been a significant uptick in the number of UK workers utilising employer-paid rewards.
According to the global rewards and benefits platform, a comparison from April 2022 to April 2023 showed there has been a 126% rise in food delivery redemptions and a 26% increase in gym membership savings. Additionally, figures from March 2022 to March 2023 revealed a 27% increase in Hotels.com discounts.
However, a Perkbox survey of 2,000-plus employees found that personal spending on leisure activities had plummeted due to the cost of living, with more than half (54%) cutting back on eating out and takeaways and more than one in three (35%) not going to the cinema as often as before. Nearly two-fifths (38%) said they are reducing their holidays, while one in five (20%) are no longer going to sporting events and a similar percentage (19%) have cut back on their fitness spending, including gym memberships.
The research highlighted a connection between unhappy staff and those who felt unrewarded or recognised by their employee. Nearly three-fifths (59%) were not offered access to a rewards and benefits platform and of these, just 35% are happy in their roles and not actively seeking another position. By comparison, 65% who do have access to a platform said the same.
Nearly three-quarters (72%) of employees without access to rewards and benefits believe their employer does not care about the impact the cost-of-living crisis is having on them, while only 28% of those who have access to them said the same.
Gautam Sahgal, CEO of Perkbox, said: “Recognising the hard work of your workforce and rewarding them for their achievements is an essential part of an employer’s role – particularly in these pressured and uncertain economic times.
“By supporting them in ways that mean they don’t have to forgo the moments that matter – whether it’s the ability to still enjoy small treats, leisure activities or family breaks – employers have the power to boost the mental, physical and financial wellbeing of their people. In return, they will see a more motivated workforce that’s better aligned to the company’s purpose, so a holistic reward offering is key.”
