Looking beyond the pay review – practical advice on how to motivate and reward employees in challenging times

As the post-covid business world now looks to the future of the workplace, we are seeing increasing numbers of businesses set out revised commitments to office based working. As flexibility decreases and financial pressures such as increased mortgage rates and living costs impact employees across the country what can you do as a progressive employer to ensure that your employees remain engaged and that you maintain a competitive employer brand proposition?

Enhanced Employee Well-being and Mental Health

Offering sabbaticals and, potentially, 4-day working weeks demonstrates a commitment to employee well-being. These initiatives provide much-needed breaks and opportunities for rest and rejuvenation. Employees returning from sabbaticals often come back with renewed energy and enthusiasm, ready to take on new challenges. Similarly, a 4-day working week allows employees more time to spend with their families, engage in hobbies, and focus on self-care. Enhanced work-life balance can significantly reduce stress levels, leading to improved mental health and overall job satisfaction but what impact do they have on the productivity of the business?

Contrary to common misconceptions, shorter workweeks and sabbaticals can actually boost productivity and creativity. In a 4-day workweek setting, employees often experience increased focus and efficiency as they strive to accomplish tasks within a shorter timeframe.

Results of a recent world wide study were clear: Of the 61 companies that entered the six-month trial, 56 have extended the four-day week, including 18 who have already made it permanent.

If your organisation isn’t ready to implement a four day week, offering employee sabbaticals can stand you out from the crowd when it comes to recruitment. Employees on sabbaticals often engage in personal development activities, acquiring new skills and knowledge that can positively impact their work upon their return, but it can also act as a key tool for retaining good employees in the long term.

We would advise seeking advice on drawing up formal policies for sabbaticals and 4 day working weeks to cover legal issues such as holiday pay accrual, working time and rest breaks and Equality Act considerations. Initiatives can certainly be introduced on a trial basis and may well be worth considering particularly if the context for pay reviews is challenged by current economic conditions and you are looking for other ways to retain top talent.

Find out more about this in our latest podcast episode of People Talk at the link below.