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Stuart Gentle Publisher at Onrec

Wellbeing, cost of living and support for local: changing employee needs alters rewards landscape

As employee needs continue to evolve post pandemic, research from Town & City Gift Cards has revealed the main concerns of UK employees, what they want from their rewards, and how organisations are meeting their needs using local rewards

Wellbeing and work-life balance, the cost of living and support for local are some of the concerns of UK employees, changing employee expectations of rewards and incentives at Christmas and beyond, according to research from Town & City Gift Cards.

The research found that 63% of employees place work-life balance/wellbeing as their main workplace concern, with 82% believing that workplaces are responsible for helping staff with their main workplace concern. 72% of employees are worried about rising costs and 92% say that organisations should support their staff in the cost of living crisis.

Interest in supporting local businesses is strong with 98% of people reporting that they are keen to support local for Christmas 2023. The research also revealed that employees believe organisations should be supporting local with their rewards and incentives, with participants calling it a ‘no-brainer’ for organisations whose staff work and live locally which has a positive effect on the community.

In this evolving workplace landscape, 86% of employees believe that workplaces should offer Christmas rewards. 83% of employees would like to receive a gift card from work at Christmas with over 90% saying a gift card would boost their motivation, for 1-3 months (32%), 4-6 months (29%) or 10-12 months (28%). 

20% of UK employees expect their workplace to spend £41- £60 on their Christmas reward. Town & City Gift Cards also found that almost 40% of UK employees have considered leaving their current job and that 91% are more likely to want to work for an organisation that offers a good benefit/reward package.

And, organisations are making moves to accommodate these changing employee needs. In Town & City Gift Card research, 98% of organisations said their staff needs had changed post pandemic, and 71.2% said their main criteria when introducing a new reward was that it meets the needs of staff.

Support for local was also key with organisations. 94% say it is a factor when planning rewards and incentives. 91% say supporting local contributes to their CSR efforts, 76% report that it allows them to take an active role in the success of their community and 47% say support for local aligns with their values as an organisation.

The research was conducted by Miconex, the fintech behind the Town & City Gift Card concept, local gift cards used by organisations for rewards and incentives, locking spend in locally. Miconex picked up the Best Gift Card Supplier award at the 2023 Incentive Awards.

Colin Munro is the managing director of Miconex, and said demand from organisations for local rewards is increasing:

“Employee needs continue to evolve post pandemic and our research shows that the majority of organisations have made some changes to their rewards and incentives to accommodate these changing needs. In particular, there is increased understanding of the role that organisations play in successful local communities, from both employees and organisations.

“In 2023, 49% of organisations say their main employee objective is recruiting staff, and 37% say their main employee objective is retaining staff. Whether it’s supporting staff through the cost of living crisis, boosting motivation, or enabling staff to achieve wellbeing and work-life balance goals through access to a wide range of local products and experiences, more organisations are realising the power of Town & City Gift Cards to meet the needs of their organisation and their staff.”