3 ways to use eGift codes for supporting employees with rising living costs
With rising inflation and soaring energy prices, it’s no surprise that 89% of UK adults saw an increase in their cost of living in August 2022, according to the Office for National Statistics.
This equates to about 46 million people. Of that number, 24 million were reported to have reduced energy use in the home, and 16 million cut back on food and essentials to combat rising costs.
The cost of living crisis has also led to personal finances becoming one of the main causes of stress for UK citizens. Perhaps as a result of worrying about money, credit cards, and payment methods, a fifth of workers said they were less productive at work and 10% of employees had missed work as a direct result of financial problems.
Currently, UK companies are not legally required to promote employee financial wellbeing, but a YuLife/YouGov survey found that almost half of workers think it should be on their employer’s radar. And a recent survey by PwC found that over eight in ten employers from large UK businesses are ‘taking action to help staff in the face of the cost of living crisis.’
If your organisation is looking to help alleviate the financial impact of the cost of living crisis, adding eGift codes to your employee benefits package will not only help reduce the financial burden for your employees but also position your business as an employer of choice.
So, here are three ways in which eGift codes can support employees’ rising living costs by giving them access to both essential and non-essential items.
1. Food and essentials
According to Money Saving Expert Martin Lewis, the rising living costs situation is catastrophic, “In a way we have never seen before. There will be many people making the devastating choice between heating and eating.”
Research suggests that the increase in the price of a weekly food shop has already impacted UK households. 35% of adults (which equates to about 16 million people) are already cutting back on food and essentials.
To help staff with these rising costs, the Chartered Institute of Personnel and Development (CIPD) recommends offering gift vouchers in lieu of cash payments as an employee benefit to help employees with the cost of food.
eGift codes, such as our Select Groceries and One4all ranges, can be used towards the weekly food shop at leading supermarket chains such as Aldi, Iceland, Sainsbury, Waitrose, Tesco, M&S, Morrisons, Asda, and more.
Another lifestyle choice that is increasingly impacted by rising living costs is non-essential items.
The Office for National Statistics found that almost 26 million people are spending less on non-essentials, with around two in five adults in the UK either reducing spending or stopping buying clothes in the first half of 2022 alone.
Another lifestyle choice to be impacted by soaring costs is eating out. A study by Barclaycard found that the cost of living squeeze had led to 67% of Brits cutting back on eating out at restaurants, and 55% reducing their spending at pubs and bars.
eGift codes can go some way to support employees’ rising living costs as they can be redeemed at a wide selection of popular brands covering fashion and beauty and dining out.
With 48% of employees reporting that the cost of living crisis is impacting their mental health, eGift codes can offer staff the opportunity to treat themselves even when on a budget.
For example, our Select range can be used for a variety of non-essential but hugely memorable rewards covering home and garden, travel, days out and nights in, and more.
Plus, research has shown that people prefer to receive gift cards or eGift codes instead of cash as an employee benefit as unexpected cash can be ‘swallowed up’ by existing debts, whereas eGift codes are more likely to be spent on an unexpected treat for themselves.
Ordering eGift codes for your employees
eGift codes are the modern twist on physical gift cards: convenient, flexible, and lightning-fast to distribute.
As an employee benefit, you can customise them and set the expiration date of the gift code. Your employees can use them to boost their financial wellbeing and help offset rising costs for food and drink, non-essentials, self-care, and more.
To find out how you can order eGift codes for your employees, get in touch today on 020 4517 5862.