Cost of working is hitting UK employees hard
Opinon
With the rising costs of living and commuting, employers should look at benefits such as travel assistance and flexible work schedules if they want to retain their talent.
Supermarket Sweep, the iconic 1990s TV show hosted by Dale Winton, was once nothing more than a duvet day distraction. But now, cramming a trolley with high-price food items sounds like a very real adult fantasy.
The cost-of-living crisis is hitting UK workers hard, with rising expenses outpacing global averages, according to a recent survey.
Capterra’s Cost of Work 2024 polled 2,716 employees across 11 countries and reveals a stark contrast between UK and global averages.
Price increases
In the UK sample of 248 respondents, 95% reported an increase in their food shopping expenses over the past year compared with the global average of 83%.
The disparity is equally pronounced in utility costs, with 85% of UK respondents experiencing rises — far exceeding the global average of 70%.
Furthermore, 62% of those in the UK reported an increase in car insurance costs, compared with a much lower global average of 38%.
With 61% of UK hybrid and onsite workers commuting by car, the report also places the UK among the top countries globally for car usage when attending a workplace.
And the cost of that continues to rise with the high price of fuel: 53% of UK respondents identified petrol as their highest expense when attending work.
Clearly, those in the UK face a number of price hikes that make managing day-to-day expenses even more challenging.
Cost of working
The UK came third in countries experiencing the highest increases in the cost of working, with 69% of respondents saying they’ve experienced it, narrowly pipped by Australia (75%) as well as Brazil and the US (both at 71%).
Between commuting costs and daily incidentals like an occasional coffee or pastry, going to the office is usually more expensive than working from home.
It’s not surprising, then, that 66% of UK respondents admitted they would consider looking for a new job if they are required to spend an unreasonable amount of their income on commuting.
Additionally, some 79% of UK employees said they would enjoy working on site more if free or subsidised food was available.
While an email letting everyone know that leftover meeting sandwiches or doughnuts are in the communal kitchen is always welcome, employees are expecting more.
The great disconnect
Ultimately, there is a growing disconnect between wages and living costs.
A significant 68% of UK workers report that their pay hasn’t kept pace with the rate of increasing costs — similar to respondents in France, Italy, Australia and Canada — and yet most employers are pushing for a return to in-person working.
As a result, employees are increasingly expecting financial support to offset the associated costs.
Some 64% of UK respondents believe their employer should pay for parking and 47% feel that their company should either cover their public transport costs entirely or at least share the expense to ease the financial burden.
Despite all this, UK employee sentiment towards a return to office is among the least negative globally — just 33% feel negative about being required to work more days on site.
The report links this to the rise in energy bills and the fact that the survey was conducted after winter, when rising heating and electricity costs affected UK residents most.
It seems that if employers want in-office, engaged employees, along with solid retention rates, there are many learnings from this report.
Providing food perks and assistance with commuting costs could go a long way as benefits, while the survey also cites flexible work schedules and on-site wellness benefits as top-rated incentives for in-office attendance.
Setting expectations
Setting in-office expectations, with clear policies that employees can understand and abide by, is key. As the report explains: “Having people in the office just because they have to be is likely to cause resistance, especially if those days actually impede employee workflows or productivity.”
In-office days should have a purpose, clear norms and compelling reasons to be there, like events, activities and collaborative opportunities.
If this doesn’t sound like your workplace, and a change in salary, benefits and flexibility isn’t on the cards, it could be time to find somewhere new.
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