{"id":2835,"date":"2022-09-16T17:32:31","date_gmt":"2022-09-16T09:32:31","guid":{"rendered":"https:\/\/www.pacificprime.co.uk\/blog\/?p=2835"},"modified":"2022-10-03T15:42:57","modified_gmt":"2022-10-03T07:42:57","slug":"cost-of-living-crisis-8-ways-employers-can-support-employees","status":"publish","type":"post","link":"https:\/\/www.pacificprime.co.uk\/blog\/cost-of-living-crisis-8-ways-employers-can-support-employees\/","title":{"rendered":"Cost of Living Crisis: 8 Ways Employers Can Support Employees"},"content":{"rendered":"

Ask anyone how life has been lately, and you will likely hear someone complain about energy prices going through the roof. The Bank of England has made it clear that we are heading towards tough times, with inflation possibly hitting 12% in October 2022<\/a>. Even then, some have suggested the Bank has been optimistic in its predictions. The hardest hit group, predictably, are people on the lower rungs of the income ladder. Anxiety over how to make ends meet can spill over to work, as stressed employees tend to be more distracted and are prone to make mistakes. Supporting employees in times like now thus becomes imperative not only because many of them really do need some help, but also because supporting employees ultimately helps your organisation.<\/p>\n

Besides the obvious measure of raising salaries in line with (or above) the inflation rate, what can employers do to make life easier for their employees? Find out 8 things employers can do to support them in this Pacific Prime UK<\/a> article.<\/p>\n

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1. Pay the real living wage at least<\/h3>\n

The national minimum wage is inadequate as a measure of what people really need to get by, and a better measure of that is the real living wage which is independently calculated to reflect what people really need to meet their everyday needs. Besides, the national minimum wage does not take into consideration the different price levels that exist in different parts of the UK. So someone living in London will feel very differently about earning just the national minimum wage compared to people living in more rural parts of the country.<\/p>\n

Just as well, employers should treat female and male employees (and employees of different ethnicities) fairly with regard to salary increases. If inflation hits everybody equally, why should some get treated less fairly than others when it comes to inflation adjustments?<\/p>\n

2. Improve financial literacy of employees<\/h3>\n

A person\u2019s financial wellbeing depends as much on money management skills as it does on earning power, and this is even more so as we near retirement age because our earning power obviously will not be the same.<\/p>\n

People benefit from better financial literacy in many ways, and at the most basic level, it enables us to review our spending habits and identify areas where savings can be made. There are good free financial resources<\/a> on the internet to which employers can point their employees.<\/p>\n

3. Expand salary sacrifice schemes<\/h3>\n

This is a win-win for employees and employers alike, as it lowers the tax burden of employees and national insurance contributions of both. The idea is simple enough: employers allow their employees to use items and services belonging to or provided by the employer, and in turn employees who opt for these will have to sacrifice part of their salaries.<\/p>\n

Typical examples of salary sacrifice schemes involve use of a company vehicle, childcare vouchers, and additional pension contributions. These schemes are particularly useful if the employer provides a professional service. For example, a dentist can provide dental checkups and cleaning as an option under the scheme.<\/p>\n

4. More flexible salary payment arrangements<\/h3>\n

For employers who can afford it, flexible salary payment arrangements (or income streaming) can go a long way towards supporting employees. Interest expenses, and much time and trouble, can be saved when employees no longer have to rely on expensive payday loans. Instead, they can withdraw some of their already earned salaries before the next payday. It is one of those rare occasions when a slight increase in workload on the part of the employer can bring about a slew of important benefits for employees.<\/p>\n

Income streaming is available under different models. Some will involve the employer borrowing money to be made available to employees; others will allow the employer to fund the streaming themselves, while retaining full control over how many funds are available and how many times a month an employee can withdraw from their pay cheque.<\/p>\n

5. Counselling and wellbeing services<\/h3>\n

Employees who are constantly worried will not be able to work efficiently. To help employees reach their full potential, employers can encourage a work culture where psychological and mental health issues are dealt with rather than being swept under the rug.<\/p>\n

Remote access to counselling and mental health programmes should be made available, because these offer employees the privacy, which is particularly important in these matters. Most importantly, there must be a clear message that staff are encouraged to seek help whenever needed.<\/p>\n

6. Pay salaries right<\/h3>\n

Even if income streaming is not an option, employers should at the very least ensure employees are paid correctly and on time. Few things are more frustrating than working hard for a full month, only to find out you are not paid in the correct amount. For employees who live paycheck to paycheck, this scenario is not only frustrating: it is downright devastating.<\/p>\n

Having a solid payroll processing system in place not only makes employees happier, but it will also help save time and prevent any potential headaches for the company. Employers should also make sure there is a channel whereby employees can raise pay issues with the company: a study by YouGov<\/a> has found that as many as 1 in 5 workers are thinking about switching jobs due to poor communication around pay, and this number rises to 22% in the medical and health services, hospitality, and leisure sectors.<\/p>\n

7. Allow employees to choose between working at the office or from home<\/h3>\n

Blame it on soaring energy prices, but more workers are ditching working from home and returning to the office to reduce household bills. Employers who do their best to allow employees to choose are thus supporting employees in a big way.<\/p>\n

Employers, alternatively, can opt to provide utility support, and what is the best practice for an employer can only be determined case-by-case. One thing is sure though, as energy prices continue to soar, employees and employers alike will look for novel ways to reduce their energy bills.<\/p>\n

8. Advise employees on their pension options<\/h3>\n

When people struggle to make ends meet, it\u2019s only natural for them to want to put away less for the future. This, of course, will have consequences for employees down the road.<\/p>\n

Employers can help by providing regular guidance on the benefits of contributing, and in many cases, employees will have stronger incentives to contribute simply by being reminded that what they are doing is for their own good.<\/p>\n

Employers who go out of their way in supporting employees will discover these measures are a magnet for talents, and those who only pay lip service are likely to discover staff loyalty is priceless but in a hard way. So contact Pacific Prime UK<\/a> today! With more than two decades of experience in insurance and superb understanding of products from top insurers worldwide, we can surely help you find the most cost-effective way to add value to your employee remuneration packages and meet your other insurance needs!<\/p>\n

Further reading<\/strong>:<\/p>\n