How can you support your staff during the cost of living crisis?
The rising cost of living is affecting everyone. From the energy price hikes to the rate of inflation affecting everyday purchases, we are all feeling the pinch as we try and navigate our way through the cold winter months. If you’re an employer, have you considered how best to support your workforce during these difficult times?
Paying a fair wage and supporting your workforce
Of course, there are the immediate obvious routes that could be taken such ensuring you are paying a fair and legitimate wage, perhaps becoming a Living Wage Employer and offering a pay rise. However, given the state of the economy, this is not always possible, and even if it is, companies are unlikely to be able to keep up with ongoing rising inflation. Fortunately, there are other ways that employers can support their workforce by helping them to manage their money and improve their financial wellbeing.
The method and frequency of how your staff are paid can have considerable impact on how they manage their finances and approach their daily duties. Financial stress can be a huge distraction at work for employees, and many employers recognise the direct impact it can have on productivity and engagement.
November’s Labour Market Outlook (LMO)* research showed that 42% of employers are worried about the financial wellbeing of their staff, rising to 56% in the voluntary sector and 46% in the public sector. We expect this concern will only increase over the coming months (as inflation keeps on growing). The question is: what can employers do about it?
How can business owners help with staff financial wellbeing?
Implement a reward strategy – if you can afford to offer a cost-of-living bonus, make sure it doesn’t inadvertently do more harm than good for those who claim Universal Credit or Tax Credits.
Publish your financial wellbeing policy – do your staff know what help is on offer and how to get it?
Review your benefits package – is it working hard enough for those most in need? Again, does everyone know what’s on offer and how to access it?
Empower your employees to be heard – make steps to create an inclusive environment that makes employees feel understood and recognised. Building a communication strategy will help to establish trust in challenging times by creating a dialogue between managers and employees.
Financial wellbeing policies to help drive initiatives
You can demonstrate your commitment to supporting your employees’ financial wellbeing through implementing a financial wellbeing policy. It can be as simple as committing to signpost your employees to independent money and debt guidance, for example, a charity such as StepChange or the government’s MoneyHelper service. By making sure your staff are aware of all the benefits you currently offer, the easier it becomes for normalising conversations about money worries at work.
Employers must provide support to aid financial wellness of staff
As the cost of living crisis cuts deeper, many employers will need to re-think their approach if they are to provide genuine support and solutions for improving employee financial wellbeing. Financial education is key and this will stem from an employee financial wellness programme where staff can be coached and provided with the necessary guidance to properly understand their finances including ways to manage a budget, save money and manage debt.
Ezitracker time and attendance software assists cleaning companies and FM businesses with workforce management from onboarding to payroll, ensuring employers have full visibility over their staff, the hours they work and how they are paid.
References:
https://employeebenefits.co.uk/top-10-ways-to-help-employees-through-the-cost-of-living-crisis/
https://www.cipd.co.uk/Images/labour-market-outlook-autumn-2022_tcm18-112526.pdf
