Foreign exchange company Travelex has implemented a cost of living pay increase for workers in affected territories.
Benefitting more than 3,000 retail and operations staff in 15 countries, the increase has been calculated based on regional inflation and the cost of living in each particular area.
Speaking to HR magazine, Travelex head of HR Clare Burns said pay was an obvious win for the company employee value proposition (EVP) and a key factor in retention.
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She said: “The greatest risk to us, as a business, is losing talented people and staff feeling they are unsupported, especially during difficult economic conditions, such as we are in now,
“Doing nothing and failing to acknowledge both the fantastic work of our retail staff and the challenges circumstances they find themselves in, was therefore the greatest risk.”
Travelex ran into financial difficulties in 2020 when pandemic lockdowns compounded the effects of a cyber-attack at the firm, which resulted in more than 1,300 job cuts in the UK.
When a deal was struck to save the company, administrator PwC said the company managed to save a total of 5,437 jobs: 1,802 in the UK and 3,635 in the rest of the world.
Burns added: “Like many businesses in the travel sector, Travelex was adversely impacted by the Covid-19 pandemic. We have, however, subsequently undertaken a successful turnaround, and in the last quarter generated revenues that were nearly £80 million higher than in Q3 2021.
“This return to growth means we were able to announce the creation of 1,200 new international jobs in June last year and subsequently a pay rise for more than 3,000 staff.”
Pay remains a hot topic for employers battling the rising cost of living and attempting to course-correct following the pandemic.
UK workers across rail, healthcare, education and other professions continue to ask for higher pay as part of their strike action.
January pay analysis by XpertHR found a widening disparity in pay rises awarded to UK workers and from October through December 2022 the top half of pay rises averaged 8%, compared to lower half average of just 3%.
A LinkedIn poll by HR magazine also found a majority (61%) of voters felt a 5-9% rise was fair for the average worker this year, a quarter (24%) however felt 10% or higher was reasonable and 14% said 0-4%.
Travelex CEO Richard Wazacz said: “Ever since I arrived at Travelex I have been taken aback by the level of commitment, determination and professionalism demonstrated by our colleagues.
“They are an exceptional group of people who have supported the company through challenging market conditions in recent years.
“As the cost of living crisis continues in many parts of the world, it is only right that we, as a people-focused employer, now offer them our full support in return.”