EasyJet’s 1K bonus | Is money the financial incentive we really think it is?

Is money the financial incentive we really think it is?

New and existing cabin crew working for the low-cost airline EasyJet are set to be offered a £1,000 bonus at the end of the summer holiday season, the BBC reports.

The airline has reportedly said that the payments would acknowledge the contribution of crew members in what it anticipates to be a busy summer period.

The news of these bonuses at EasyJet come as airlines are competing to attract, recruit and retain top talent.

According to the BBC, the aviation industry cut thousands of jobs during the coronavirus pandemic, and now airports and airlines have been trying to recruit staff for months as they prepare for a busy summer ahead following the ending of travel restrictions.

British Airways & “golden hellos”

While the £1,000 bonus certainly seems like an appealing offering to both new and existing talent, EasyJet is not the only company within its sector to be offering new joiners a “golden hello” – a term Investopedia describes a s “signing bonus offered to a candidate from a rival company, specifically to entice employees of competing firms to leave”.

In fact, earlier this year, a separate BBC article reported that British Airways (BA) was offering new cabin crew a £1,000 “golden hello”.

Read more from us

These kind of recruitment tactics have been seen more widely in the world of work too as many sectors have struggled with staff shortages.

For example, in July last year, HR Grapevine reported that Tesco was set to offer a £1,000 starting bonus to lorry drivers as a shortage of HGV workers continued to impact the retail industry, leaving to stock and fuel shortages across UK supermarkets.

Could financial incentives help?

Of course, offering financial incentives could be a good way to attract and recruit new talent, and also boost morale and engagement of those already working within the business.

However, it is likely that, aside from financial incentives, workers will be on the lookout for employers that maintain a good company culture and look after the wellbeing of employees.

For example, a Robert Half survey – reported on by Great Resume Fast – found that company culture is important to both jobseekers and to employers. In fact, the survey found that 35% of job hunters wouldn’t take a job where they weren’t a good fit with the company culture – even if the job was considered perfect in other ways.

Additionally, the pandemic has had a huge impact on wellbeing (both in work and personal life) and staff are increasingly looking for greater employer-led support in this area. In fact, data from Secondsight found that just over half (51%) of employees believe that their employers should be offering more employer-led support. With this data in mind, it is possible that a firm’s wellbeing support (or lack of) could influence their decision to stay or go.

So, for employers wanting to win the ‘war for talent’, having a good workplace culture and approach to wellbeing could naturally stand them in good stead when it comes to attracting and retaining talent. But, what else should HR consider?

What other incentives could HR use to attract and retain talent?

A good perks and benefits package is also likely to lure in top talent and keep existing staff engaged too. In fact, data from EBRI found that 78% of employees cited work perks as an important part of their decision-making process when taking on a new role.

Additional Sodexo Engage research found that almost three in five employees agree that work benefits mean that they will stay at a company longer, pointing towards the importance of competitive benefits. But, what exactly are staff looking for?

Well, previous research from Sodexo Engage looked into this very thing. The 2021 research found that finishing early on a Friday has been revealed as the most desired work perk among UK employees – a benefit which companies including Kellogg’s and Penguin Random House have been known to offer staff.

Also among some of the most-desired perks included paid holiday allowance (84.1%), summer hours (76.8%), and student loan contributions (48.1%) also ranked highly on the list.

So, while a £1,000 bonus could be an appealing offering to both new and existing staff, there are other considerations for HR and employers too.

Have you enjoyed this piece?

Subscribe now to myGrapevine+ and get access to exclusive new content, and the full content archive.

Be the first to comment.

You are currently previewing this article.

This is the last preview available to you for 30 days.

To access more news, features, columns and opinions every day, create a free myGrapevine account.