Nearly a third of employees say their salary doesn’t cover basic living costs

With many employees believing that their pay is not keeping up with rising living costs, 37% of workers are now considering changing jobs.

A new report revealed that essential workers are twice as likely to have handed in their notice over recent months, to move to a different sector because they were offered more money.

The Totaljobs research revealed that nearly half of the employees surveyed had not had a pay rise in a year, and for 42% of those who did, they reported a rise of just 5% or less.

Worryingly, as many as 30% say that their salary doesn’t cover basic living costs. As a result of this, another 30% are taking on extra shifts at work, while 17% have had to take on a second job.

Jon Wilson, CEO of Totaljobs, commented, “During the course of the pandemic, everyone came to recognise the value and importance of our key workers. Society simply couldn’t have functioned without them, and they kept this country running. However, those we stood outside and clapped for every Thursday continue to be among the worst paid in our society.

“This research illustrates that everyone is feeling the pinch of the rising cost of living – yet it is disproportionately felt by our key workers – to the extent that some are looking to move jobs for one that provides them with more financial security.”

As many as 84% of businesses are taking action to support their staff, for example:

• 35% are giving everyone a pay rise in line with inflation.
• 29% are letting employees choose where they work to help with expenditures.
• 24% are offering financial wellbeing advice.

However, almost all employees surveyed (96%) say that they want to see more support from the government.

Jon Wilson added, “It’s clear that the cost of living is having an impact on businesses and their staff. We’d encourage employers to acknowledge the situation we’re in and have open conversations with their staff about financial wellbeing and remuneration.”

To find out more about contracting please contact Jaime on 01442 795 100 or email jaime.thorpe@dolanaccountancy.com.