Priority Appointments' MD Tracy Welch considers how inflation and the rise in the cost of living are affecting the employment packages local businesses need to offer job candidates in order to fill jobs in Basingstoke. 

A recent study of over 320 private-sector organisations by XpertHR* published on the Business Leader website found that 91% of employees will probably receive a pay rise in 2023. 

Pay awards between September 2022 and the end of August 2023 are likely to climb by five per cent, with pay rises of up to 15% on the cards for the highest-demand roles.

Right-Sized Packages to Fill Jobs in Basingstoke

As a local recruitment agency in Basingstoke, and as business owners ourselves, we know all too well that the cost of living is going up. 

Local employers in Hampshire, Surrey and Berkshire that we talk to tell us they are under pressure to increase pay to minimise the impact of inflation on their staff and ensure they retain talented employees.

Pay Rises Driven By the Skills Shortage

To add to the pressure, 78% of companies surveyed in the XpertHR study said the rise is exacerbated by the current skills shortage, creating a pincer effect on salaries across a wide range of jobs. 

 And rises in fuel costs are hitting our clients in the manufacturing and engineering sectors particularly hard.

With inflation expected to drop back by the middle of 2023, many companies are apprehensive to offer pay increases that are pegged to the current rate of inflation. 

Attracting the Best Talent for Jobs in Basingstoke

So what can businesses do to attract the best talent? 

We’re increasingly seeing companies use a range of benefits to secure good-quality candidates.

Here’s our round-up of what you can do to improve your chances of filling your jobs in Basingstoke this winter:

Cost of Living Bonus

Many companies have already given employees one-off cost of living bonuses to help with rising household bills, especially the cost of fuel and food. Many of those who haven’t are planning to do so before Christmas, with amounts typically between £500 and £1500, depending on the type of business and its ability to offer this type of help.

Paying a one-off cost of living bonus has the advantage of helping employees right now, without increasing the wage bill over the longer term, as any future pay reviews will be pegged to the current wage level, and won’t take account of any bonuses. 

Help with the Cost of Workwear

Some employers we talk to are covering the cost of essential workwear such as work boots, hardhats or other specialist equipment that would normally be provided by employees out of their own pockets.

For office-based staff, we’re hearing that companies are changing their official or unofficial policies around business attire, so people aren’t having to spend money on suits or jackets and can wear other items from their existing wardrobes. 

Flexible Working 

Options for flexible working are very popular, and depending on their circumstances, candidates may well accept a lower salary in exchange for greater flexibility. 

Of course, this doesn’t suit every type of job and it’s important to make sure that the role suits a flexible pattern of working. 

You also need to ensure that employees who work from home or part-time have the same access to career development as their full-time or on-site peers. 

Salary Sacrifice Schemes

Employees can reduce their tax and NI liability for certain benefits provided in a salary sacrifice arrangement. 

Benefits in kind which can save tax include:

• payments into pension schemes
• employer provided pensions advice
• workplace nurseries
• childcare vouchers and directly contracted employer-provided childcare (terms apply)
• bicycles and cycling safety equipment (including cycle to work)
  
  

Salary sacrifice schemes need to be reflected in the terms of each employee's employment contract and be made with the full agreement of the employee.

If you’re trying to work out the best way to recruit new people for job vacancies in and around Basingstoke, give our expert and friendly team a call on 01256 334575 to discuss how you can support employees with the cost of living without it costing you the earth.