Probably, you have noticed the increase in prices at gas stations, grocery stores, and housing markets recently. It's not just a personal observation; this surge is impacting everyone. In fact, according to a survey conducted by Statista, a significant 44% of U.S. adults now consider inflation as the most pressing issue in the country. But it is clear this is not only happening there. The rising costs are certainly causing widespread concern all over the world.
Inflation has become a formidable challenge for employees, particularly in the current climate, where rising prices have far exceeded expectations. As inflation's impact is felt by workers in different industries, organisations are searching for ways to back their employees and protect against economic challenges.
While some companies have chosen to reduce their workforce to cope with the effects of inflation, there are other approaches that employers can consider to support their workforce during these challenging times. A research by Gallup estimates that line managers account for around a 70% variance in employee engagement across businesses.
We were keen to find out what employers can do to support employees right now, so we asked HR Managers and CEOs that work with us. This article explores six effective options that employers can implement to offer support and alleviate financial stress for their employees.
Develop a transparent salary enhancement approach.
With inflation eating into earnings, it becomes crucial to focus on the entire compensation package. Keeping other benefits like health coverage and retirement plans intact can be beneficial for employees. This ensures that they can still enjoy these perks even when the purchasing power has decreased.
Embrace adaptability and flexibility Workforce agility.
The widespread adoption of remote work, increased employee mobility, and the growing trend of international outsourcing have transformed the work landscape compared to a few years ago. It is vital for creating a flexible organisation to reevaluate how tasks, roles, and responsibilities are organized.
Offer Financial Coaching And Planning
For some employees, financial coaching can be transformative. By providing guidance on financial management, employees can better navigate the challenges of inflation. Financial coaching helps identify areas for improvement, allowing employees to adjust their finances proactively and make informed decisions. This supports employees to handle financial challenges effectively, reducing stress and boosting overall job satisfaction.
Provide Auto-Enrollment Or Employer Retirement Plans
Inflation can leave employees with limited funds for investments, as they face higher daily expenses. Employers can support their employees by encouraging them to invest in retirement plans through auto-enrollment or employer matches. By making contributions easy and rewarding, employees are more likely to take part and secure their financial future. Offering access to retirement plans shows a genuine commitment to employees' long-term financial well-being.
Consider A One-Time Inflation Bonus
Giving company-wide raises can be financially tough for many businesses, especially smaller ones. But, employers can still show their appreciation for employees and counter the impact of inflation by providing one-time inflation bonuses. This approach offers direct financial support without a long-term commitment, demonstrating to employees that their hard work is valued, especially during difficult times.
Establish A Wellness Program With Mental Health Support
Financial worries can lead to increased stress and endless waves of negative
affect the mental health of employees. Employers can help by introducing a wellness program that incorporates mental health support. By providing resources such as counselling, stress management workshops, and mindfulness sessions, employers can foster a healthier and more resilient workforce. A mentally healthy team is likely to experience fewer instances of burnout, workplace violence, and injuries, promoting a positive working environment.
Offer Hybrid Work Options To Reduce Commuting Costs
Inflation has a significant impact on transportation costs, especially fuel prices. However, allowing employees to work from home, even part-time, not only helps them save on gas costs but also provides greater flexibility and independence. This can improve work-life balance and increase productivity, creating a happier and more efficient workforce.
Now, it's important to say that with inflation continuing to impact the economy, it's essential for employers to take proactive measures in supporting their workforce during these challenging times.
By implementing these seven strategies, employers can effectively reduce financial stress among their employees when it comes to nurturing an engaging work environment. Providing support, financial assistance, and access to resources will play a vital role in creating a thriving workforce, leading to sustained success for the company and its employees.