Cost-of-living crisis impacts employee’s leisure activities the most, survey shows
Perkbox, the global rewards and benefits platform, reveals new proprietary data showing the extent to which businesses have become champions of their employees’ lifestyles. With price rises fuelling the cost-of-living crisis, employees are increasingly relying on employer-funded rewards to enjoy the moments that matter outside of work.
Over the past year, Perkbox’s platform, which supports more than 4,500 companies, has shown a huge uptick in the use of employer-funded rewards and benefits in comparison to 2022. With price rises reducing discretionary income, workers are turning to their employers for support, redeeming rewards to fund small luxuries, including food deliveries and gym memberships.
Perkbox compared reward redemptions from April 2022 to April 2023 to see how the cost-of-living crisis has impacted employee’s leisure activities, finding:
- A 126% rise in food delivery redemptions
- A 26% uptick in gym membership discounts
Meanwhile, according to a Perkbox survey of over 2,000 UK workers, personal spending on leisure activities has dropped significantly, with over half (54%) of employees saying they’ve cut back on dining out and takeaways due to cost of living pressures. Cinema trips have also taken a back seat, with more than a third (35%) admitting they’ve cut back on this particular luxury and nearly two-fifths (38%) cutting back on holidays due to rising costs.
When it comes to sporting hobbies and health and fitness spending, one in five (20%) are no longer going to sporting fixtures and 19% have cut back on fitness-related expenditures including gym membership.
According to the research findings, a clear connection can be found in those employees who are most unhappy in their job and who aren’t being recognised or rewarded by their employers for their achievements. In fact, nearly three-fifths (59%) of employees currently do not have access to a rewards and benefits platform. Of these employees, only 35% are happy in their current role and are not actively seeking a new job, compared to 65% of those who do have access to rewards and benefits.
Similarly, of the employees without access to a rewards platform, 72% believe their employer does not care about how the cost of living crisis impacts them — whereas only 28% of those who receive rewards via a rewards and recognition platform harbour the same feelings.
Gautam Sahgal, CEO of Perkbox commented: “Recognising the hard work of your workforce and rewarding them for their achievements is an essential part of an employer’s role – particularly in these pressured and uncertain economic times.
“By supporting them in ways that mean they don’t have to forgo the moments that matter – whether it’s the ability to still enjoy small treats, leisure activities or family breaks – employers have the power to boost the mental, physical and financial wellbeing of their people. In return, they will see a more motivated workforce that’s better aligned to the company’s purpose, so a holistic reward offering is key.”