Just one in six (15%) employees say they have been offered help with the cost of living by their employer, new research has revealed.
The survey, commissioned by the Gift Card and Voucher Association (GCVA) showed that pay rises were the most popular method reported, cited by 55% of those offered financial support, while nearly one in 10 (9%) have been given a one-off bonus.
Almost one in three (28%) of the 1,000-plus UK employees polled would be more loyal to a company that provided modest incentives or rewards, such as a £50 gift card, according to the research carried out among more than 1,000 UK adults.
The GCVA warns that while salary increases and bonuses may provide some support to those facing rising costs, these methods are unlikely to be sustainable because businesses are also tackling increasing costs.
More than a quarter (26%) of employees reported being given gift cards as a reward or bonus, while a further 18% had been awarded a gift card specifically to fund essentials.
Gail Cohen, director general of the GCVA, said: “There’s a real opportunity for businesses to utilise gift cards to increase loyalty and retention. Whether it be in the form of offering a reward to employees or an incentive to shoppers, our research shows that the impact of gift cards used in this way remains strong.
“Despite this, employers would be able to better support, reward and incentivise employees if the tax-free allowance for trivial benefits was increased from £50. With inflation fuelling high prices, people are able to get considerably less for £50 than they would have previously. As a result, there is a case to be made for increasing allowances to encourage more businesses to provide tangible support and boost morale in challenging times.”