As the cost of living continues to rise, UK employees are feeling the financial strain, with a significant impact on their overall well-being and work-life balance. A recent survey conducted by Ciphr - a leading UK-based provider of integrated HR, payroll, learning and recruitment solutions - shone light on how these mounting expenses are affecting the workforce and the gender disparity that exists in how employees respond to these challenges.
Out of the 1,000 UK adults surveyed, a staggering 76% revealed that they have experienced stress and been overwhelmed as a result of the increasing cost of living. The burden of financial strain has become so pressing that nearly one-third (31%) of respondents have taken the brave step of approaching their employers for a pay raise. Additionally, over a third (34%) of the employees surveyed have actively sought better-paying job opportunities elsewhere.
In an attempt to manage their finances, a significant 79% of respondents reported cutting back on household spending over the last six months. This percentage has risen from 67% since the previous year, indicating that the situation is only getting worse for many. Furthermore, to cope with the rising costs, some employees have had to make additional sacrifices, such as reducing pension contributions (14%) and personal insurance cover, including income protection and medical or dental insurance (17%).
The fear of missing out on wages has compelled over half (52%) of the survey respondents to continue working even when they were feeling unwell. This figure has increased from 46% in the previous year, indicating that the financial pressure is influencing employees' decisions to prioritise work over their well-being. For in-person roles, this issue becomes even more pronounced, with a staggering 64% of workplace-based staff admitting that they cannot afford to take time off work when they're sick, compared to 38% of hybrid and remote workers.
The survey also brought to light a troubling gender disparity in how employees are dealing with the cost-of-living crisis. Despite being equally affected by the rising expenses, women were found to be less likely than men to request a salary increase this year. Only 26% of women surveyed had asked for a pay raise, compared to 36% of men. Moreover, women were also less likely to ask for a cost-of-living bonus (7% vs. 14% of men), a promotion (17% vs. 22%), or additional employee benefits to supplement their income (11% vs. 16%).
Paradoxically, it is female employees who seem to bear the brunt of the financial strain. A higher percentage of women (55% vs. 47% of men) reported being unable to afford sick leave. Furthermore, they were more likely to feel overwhelmed by money worries (80% vs. 70% of men) and to believe that they are not being paid enough (38% vs. 32%).
Although there is only a marginal difference between men and women in how they perceive their salaries concerning the value they bring to their organisation, there is a stark contrast in how they act on these perceptions. A significant gender 'ask gap' was observed, wherein women who knew they were unhappy with their wages (32%) were less likely to request a pay raise than men who felt dissatisfied with their pay (38%). Even men who were unsure if they were being paid fairly were more likely to ask for a raise (32%) than women who knew they were underpaid (just 32%).
Encouragingly, previous research from Ciphr has shown that employees who muster the courage to negotiate for higher earnings are more likely to receive a pay raise. Therefore, fostering an open and supportive culture that encourages salary negotiations and removes barriers to discussing wages can be a step towards narrowing the gender pay gap.
The rising cost of living is taking a heavy toll on UK employees, leading to stress, financial sacrifices, and even health risks due to fears of losing out on wages. However, the survey by Ciphr also exposed an alarming gender disparity in how employees respond to these challenges. Women, despite being equally affected, are less likely to seek pay raises or better job opportunities, which may be exacerbating existing pay gaps in the workforce. Addressing this gender 'ask gap' and empowering employees, regardless of gender, to negotiate their salaries can be a crucial step in creating a fair and equitable work environment for all.
