How Businesses Can Help Employees Through the Cost-of-Living Crisis

The media reminds us all daily of the millions of families nationwide who are struggling during the cost-of-living crisis … As shown in the figure below, it is forecast that change in real household disposable income will remain in negative figures in the short term, improving in 2024/2025.

SO, HOW CAN (AND WHY SHOULD) EMPLOYERS HELP IN THE MEANTIME?

The Guardian reported that in a Chartered Management Institute (CMI) survey of more than 1,000 managers and team leaders, 71% said they had seen evidence of the crisis increasing stress and anxiety for their teams. Of these, 93% said it was affecting employees' productivity*. This can be as a result of due to sleep issues, reduced team unity due to isolation/withdrawal, and a potential for both absenteeism and presenteeism.

The Chartered Institute of Personnel Development (CIPD) cites research by the Joseph Rowntree Foundation which shows that low-waged households spend a lot of their earnings on commuting, food and leisure, childcare, housing, and utilities and below are a few ideas to support employees (always consult HR as some benefits hold tax implications):

· Letting people work from home more often (if their jobs allow it) saving on transport costs – or allowing people who travel by public transport to come to work off-peak when it’s cheaper

· Providing interest-free loans to buy public transport season-tickets, bikes/cycles

· Reimbursing staff travel expenses as quickly as possible

· Providing workplace cooking facilities or free/subsidised meals/drinks

· Offering rental deposit schemes

· Signposting ways of reducing energy use

· Subsidising childcare costs

· Offering children’s wear discounts/vouchers (eg. in Sept for school uniforms)

· Signpost those with money worries to external sources of information and guidance, such as the Money and Pensions Service’s at https://www.moneyhelper.org.uk/en

Employers are encouraged to support their employees under their Duty of Care, whilst complementing ther Employee Value Proposition (EVP). Having a strong EVP with a competitive benefits structure will ensure you retain key personnel to help maintain and build a stronger business.

Forecast of annual change in real household disposable income per person in the UK 1956/57 to 2027/28

Source: Statista

* Stress over cost of living crisis harming workers’ performance, survey finds - The Guardian

https://www.theguardian.com/business/2022/dec/11/stress-over-cost-of-living-crisis-harming-workers-performance-survey-finds#:~:text=In%20a%20Chartered%20Management%20Institute,of%20all%20the%20managers%20surveyed