Investigate practical ways to support your group’s economic well-being and foster a more resilient work environment as the cost of living keeps rising.
CREDIT: This is a modified version of an essay that first appeared on ICAEW.
Some workers are struggling with the ongoing cost-of-living problems in the current economic climate, and these economic pressures are not just felt at home. Employees and employers alike are becoming increasingly concerned as a result of these economic strains’ results spreading into the workplace. How can you, as an employer, move up and offer your employees useful assistance during these trying times?
Improving Mental Health
Employee financial concerns have become a source of stress, adversely affecting both their physical and mental health, as the cost of living keeps rising in the face of inflation and rising interest costs. Almost half of the workplace has reported that these financial problems are having an impact on their overall well-being, according to studies done by Nuffield Health.
It’s difficult to understand how financial concerns and emotional health interact. Both financial troubles and mental health issues can be the cause and effect of these problems. Employers must improve their employees ‘ emotional support in order to address this. The first step is to recognize signs of emotional distress, and from there, businesses can direct people to the personal well-being help that is available to them. This might involve cognitive behavior therapy sessions ( CBT ) or employee assistance programs ( EAPs ), which give people easy access to professionals who can offer advice and support.
Encouraging Financial Meetings
The regularization of funds discussions at work is a crucial component of helping employees through financial difficulties. In this regard, senior officials may lead by example by demonstrating compassion for staff members and implementing a friendly management style.
Encourage open discussions about monetary problems that either the company or the employees themselves have encountered may help raise financial literacy and foster a culture where workers are comfortable talking about their problems.
Other Advantages for Worker Happiness
Employers may look into other ways to improve the entire compensation bundle for their employees, even though raising baseline salaries in line with prices may not always be possible. According to Samantha O’Sullivan, plan lead at the Chartered Institute of Payroll Professionals, this might entail offering access to individual assistance programs to help workers with stress and bill issues, paid meals at work, or staff discount programs.
Employers may also think about providing wage sacrifice options for programs like cycle to labor, pensions, and babysitting voucher programs, provided they abide by National Minimum Wage regulations. This not only supports workers during difficult financial times, but it can also save the company money by lowering national insurance contributions.
Fostering Economic Education
A powerful tool for improving staff’s capacity to manage their finances efficiently is financial literacy education. Businesses can offer resources like workshops aimed at promoting economic education, debt counseling, advice on debt consolidation, and financial benefits schooling.
Offering staff members the chance to follow up on a more personal level through one-on-one interactions or personal webcasts can also help with continued financial discussions.
Also, there are a ton of resources available—many of which are free—to assist workers seeking financial advice. Budgeting programs like Goodbudget and Spending Tracker assist people in keeping tabs on their spending, while applications like Intellect help people manage their finances and find the best deals.
Enhancing Current Advantages
Amplifying contact about current benefits is one efficient way to assist people in cutting costs. Funding for season tickets, interest-free loans, private medical, insurance, and help with lifestyle advantages like gym memberships and discount codes can all help to cut costs and support employees ‘ physical and mental well-being during these difficult financial times.
Tax-Effective Assistance
Utilizing the trifling benefits program, businesses can give their employees non-cash gifts of up to £50 in the form of gift cards without worrying about taxes or national insurance. This can be a priceless way to help staff members deal with rising prices.
Enabling Flexible Work Schedules
Companies may think about implementing flexible working arrangements, like allowing employees to work from home, to reduce the financial strain on staff. Employees are given the freedom to better manage their work-life harmony as a result, which not only lowers travel-related costs. People can also benefit from flexible travel options by avoiding high travel expenses.
Open Discussions of Payment
Even in times of financial crisis, managers may encourage open discussions about individual compensation. According to research from the human capital consulting firm The Josh Bersin Company, well-communicated give capital is 13 times more crucial than higher pay for luring and keeping employees. Through opportunities for empowering and workplace benefits that support long-term career growth and overall well-being, employees may feel valued.
Immediate Financial Aid
Establishing an emergency fund or offers that workers can qualify for during difficult times can offer crucial support if it is financially feasible. Another way to lessen the financial strain on people is to provide short-term, interest-free loans to cover unforeseen expenses.
Employers have a vital role to play in helping their team navigate the cost-of-living crisis in these difficult times, providing financial support, and fostering an environment of support at work. Businesses can help their workers weather the storm by providing realistic aid, which will ultimately improve economic stability and workplace confidence.