Why raising wages isn’t enough for employees

TrueConnect_RaisingWagesIsntEnough

We’ve recently experienced the highest rate of inflation in 40 years which has left many feeling lost and unclear about future life decisions. 

Seemingly, it’s left employers between a rock in a hard place in some cases as they determine how to help retain their employees while keeping their business afloat. 

Some organizations have cut costs by 3.9% to put towards salary increases. Other organizations have cut their workforce by simplifying departments.

Yet, cutting staff and cutting costs isn’t the only way for organizations to safeguard against what could come from inflation…

What can organizations do?

Work perks. 

I.e. employee benefits. Think about the benefits that you would want from an employer. 

While cutting your workforce or raising wages or salaries does seem like the obvious first choice as it has an immediate cost impact on either you or your employees, it might not be the best solution.

These wage-price spirals may actually cause higher inflation down the road which could be a whole different debate on another day…

So, what benefits or work perks should you offer? 

Benefits employees have asked for

Based on the data from employees around the nation that we have surveyed, we know employees would not only benefit from, they also actually want the following benefits available to them in their workforce.

Emergency Savings

Just under 50% of respondents said they’d like an emergency savings programs available to them. 

Each month, an employee could be eligible for prizes or cash rewards for reaching certain savings targets or goals. Money can be put into the savings account on their own or it could be diverted through automatic payroll deductions (with TrueConnect). 

Rewards Program

Just over 43% of respondents said they’d like to have a rewards program offered to them through their organization. 

A rewards program here was described as an online, cash-back program where you connect your debit or credit card so that when you shop with your card, you automatically earn rewards points. These points could be redeemed for cash-back or could be automatically added to an emergency savings account.

Debt Management

35% of respondents said they would use a debt management service that helps them repay debt of over $15,000. 

Employees would explain their debt situation to a trusted consultant who then negotiates a settlement agreement to repay the debt.

Discounted Prescriptions

About 31% of respondents would like a discounted prescription program. 

Prescriptions can be quite expensive so with a discount program, employees can be guaranteed they are getting the lowest prices and could even save up to 80% on prescription drug costs. 

Auto Loan Refinancing

Almost 50% of respondents are interested in their employer providing them with an auto loan refinancing option.

How does this compare to raising wages?

Adequate compensation is crucial, but it’s not the only thing that drives a healthy employee experience. Employees want more and they want to feel valued or prioritized.  Employees want more and they want to feel valued or prioritized. They want benefits they will actually use…

A Financial Wellness Platform could be just the thing your employees are looking for. 

Download this quick-read PDF today to see reasons Why You Need a Financial Wellness Platform and why it is worth investing in. And p.s. TrueConnect’s Financial Wellness Platform is a no cost program and takes very little to implement and manage.

 

 

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