Businesses are facing a significant challenge this winter – how to retain and motivate key, skilled staff to increase productivity and offer support as everyone feels the cost of living crisis bite.

Employees who are worried about bills or feel undervalued cannot give their best in the workplace, but businesses too are facing challenges – as bills rise and spending falls, they also need to carefully manage the cost of giving.

According to the recent Appreciate Employee Value Report, almost 10 million workers in the UK feel undervalued, with 79% already looking to leave their current employer for a new role.

However, with the right reward and recognition strategy in place, 84% of UK employees said their loyalty to a company would increase.

But recognising employees to help them feel valued doesn’t have to be expensive, particularly at a time when businesses are facing rising energy bills, higher commercial rent, falling consumer spending and the impact of inflation.

So, what is the ‘cost of giving’ for a business wanting to support employees during this pressurised time while also needing to keep an eye on expenditure?

The ‘Everyday Benefits Card’ is a pre-paid discount card that employers can buy for a small fee and hand to their employees as a new benefit. By giving staff the ability to pre-load funds at a discount onto their Everyday Benefits Card they help them save at more than 90 popular retailers including Marks & Spencer, Argos, Iceland, Boots and Currys. The card also gives access to exclusive giftcard and e-code discounts. It’s a cost-effective way for employers to make a real difference to their staff.

Created by the team behind Love2shop gift cards, the ‘Everyday Benefits Card’ allows you to give tax-free gifts to employees in addition to ongoing discounts. For example, as a business you can offer employees a gift up to the value of £50 without any tax implications thanks to HMRC’s annual tax allowances.

A company will decide on the individual spend, whether that’s more or less than the £50 tax-free maximum, but crucially once the recipient’s balance has been spent, employees can re-load the card themselves – still at a discounted rate – to continue saving on high street spending and online purchases. They will also benefit from access to additional discounts with supermarkets and other everyday retailers, which can be purchased with their debit card.

How does it work? As a pre-paid discount card, funds added receive an instant discount of 7.5% – so for every £100 someone adds to the card, they only pay £92.50. This can be used in-store in more than 90 Love2shop retailers or to purchase dining e-codes online to help them save on eating out. Card loads can also be exchanged for a pre-paid virtual Mastercard which can be used for online purchases with even more retailers (fees may apply).

Employees with an Everyday Benefits Card also receive access to exclusive discounts. Once they have registered their card with Love2shop, they unlock the ability to use their debit card to purchase discounted gift cards from selected leading supermarkets, save up to 50% at some of the UK’s most popular attractions such as Alton Towers, Madame Tussauds, Thorpe Park and Legoland Windsor and even purchase holiday vouchers.

“The current economic situation in the UK means that everyone, entrepreneurs, businesses, individual employees and their families are trying to manage a particularly challenging economic climate,” said Frank Creighton, Director for Business Development at Appreciate Business Services.

“For employers, there is a complex challenge. They want to help their workers through a tough time, to reduce stress and allow them to focus on their work. They also know that if they lose good staff, they will lose the key skills they need to successfully recover when the economy improves – and the cost of recruiting is expensive.

“But they are weighing that up against a backdrop of increased costs, reduced income and the fact their businesses are also facing a battle.

“This is where the Everyday Benefits Card can help. With minimal cost you can reward your employees with a discount card that will help them manage their household finances.

“As an employer you can choose if, and when, to add funds to the card. You may want to use a top-up as a reward for good performance, to recognise milestones like long service or simply as a random act of kindness. But importantly employees can add funds to their own cards and continue to claim discounts for as long as they like, at no cost to you, but feeling positive about their employer.”