Cost of Living Crisis – How can you as an employer help support your staff? Part 1
The Cost of Living crisis is affecting everyone in one way or another, whether this is cutting back on luxuries such as holidays or for many it also means struggling pay day to pay day to afford necessities like food and bills. We’ve seen this affect those on lower incomes but also those who earn a “comfortable” wage yet struggle to meet the demands of ever-increasing food, energy and mortgage costs. As the summer holidays have now come to an end and the majority of individuals are making their way back into their working roles after perhaps spending the last six or more weeks juggling childcare, keeping family entertained and trying to spend time away from home, the cost of living crisis may be more prevalent than ever.
Businesses are also experiencing the impact, not only first-hand but also the knock-on impact of their staff struggling financially and the additional problems this may cause. In order to assist with how as an employer you might be best placed to support your staff we have created a series of practical advice-based articles, starting with:
What to do if a member of your staff comes to you for financial assistance?
The easiest answer is to pay more. The bottom line is that most people work to be paid and if their pay is not enough there’s a real risk they could start looking for a job elsewhere, but the cost of living crisis hasn’t only affected individuals, employers are feeling the strain too and to continue to increase pay is no longer attainable.
When faced with this situation, businesses should always bear in mind that if staff leave and the market continues to struggle to hire new recruits it’s likely businesses will need to take further steps to entice new recruits, this usually includes increasing the salaries on offer, paying recruitment fees and training new starters all of which can easily end up being more expensive than raising your original member of staff’s salary and retaining their talent.
Raising salaries isn’t the only answer to addressing the cost of living crisis though and it isn’t the only way to encourage staff to remain in your employment.
Staff want an understanding employer, one who genuinely cares and most staff appreciate that the current climate isn’t easy for businesses either. Even if you can’t help through large financial sums there’s sure to be something you are able to do to assist staff who might need support. For example:
- Provide a one off cost of living payment.
- Free or subsidised lunches or snacks or drinks in the office. Even something as simple as having a cupboard stocked with basics like cereals, pasta and bread to ensure that all staff have the opportunity to eat at least one meal a day can be really helpful.
- Salary sacrifice schemes for childcare, cycle to work and even cars to help staff spread their costs and reduce their monthly outgoings.
- Flexibility of working hours to enable parents to work around school days and avoid additional childcare costs or to enable those with caring responsibilities to manage this in a cost efficient way.
- Work from home days to reduce the cost of commuting to work.
- Allowing staff to work from the office full time to reduce their at home energy costs.
- Facilitate and encourage car share arrangements for staff who live close to each other.
- Free or subsidised parking.
- Checking and reminding staff of current perks that may be in place. Many health care schemes come with cash back or discounts with big retailers which can provide large savings in the run up to the festive period for example.
- Simply lending an ear can be of huge assistance to a member of staff who is struggling. Sometimes people do not need solutions or advice but rather someone to just listen to them so they can verbalise their worries and potentially work through to a solution.
It is not just money that retains staff, a healthy and supportive workplace does. We will discuss in our next articles further ways in which you can support staff through this difficult time.
If you want to hear more about employment law updates and changes, our next HR Forum in Chesterfield is on 03 October 2023 where we will update you on the recent amendments to the law for businesses to be aware of, including effective appraisal and performance management systems. You can find further information about the event and register to attend here: Autumn HR Forum – East Midlands Chamber (emc-dnl.co.uk)
You can also find details of our other upcoming events here: Events | BRM Solicitors, Chesterfield (brmlaw.co.uk)
For further information or advice regarding how to support your staff and/or any other employment matter, please contact our Employment Law Team on 01246 555 111 or contact:
Amy Hallam
Head of Employment
t: 0114 3496989
e: amy.hallam@brmlaw.co.uk
Ellie Leatherday
Associate
t: 01246 564002
e: ellie.leatherday@brmlaw.co.uk
Jade Taylor
Trainee Solicitor
t: 01246 560587
e: jade.taylor@brmlaw.co.uk
