Supporting Employees Through The Financial Crisis
Many employers and employees are currently feeling the effects of the financial crisis. Inflation is rising, the cost of living is increasing, and people are having to cut back on their spending due to the soaring cost of food and petrol.
Impact on employees
It is important for employers to recognise the impact this may have on their employees. Additional stresses at home and figuring out where to make cuts in order to make ends meet may impact their performance at work.
How employers can help
The voluntary real living wage has been raised to provide more financial support to employees. The current rates are £10.90 across the UK and £11.95 in London. Whilst it may not be possible for all employers to increase wages, there are other steps that they can take to try and provide assistance to their employees, such as:
- Putting together a list of local services across the country that may be of help to employees. These include Citizen’s Advice (debt and money) and the local Council.
- Reviewing your benefits package – is there anything to be added such as payment towards dental and eye care – health care plans, perks schemes helping employees to save money.
- Reviewing company bonus schemes – employers could provide a one-off payment to their employees to help with increasing costs.
- Communication – make sure employees are able to approach their managers to talk about any worries or concerns they may have and see if there is anything the company can do to help.
- Financial and debt awareness and training.
It is also expected that there will be further announcements this week in the Autumn statement in terms of raises to the national minimum and living wages generally, it is however that many people may have to pay more tax which could impact take home pay further and mean further support is needed by your employees.
We will be running a short HR Forum employment law update following the Autumn statement next week online on 24 November 2022 at 10am which can be booked at the link below.
https://www.emc-dnl.co.uk/connecting-you/business-focused-workshops/hr-forum6/hr-forum7/?VariantID=5465
For further information about this matter and how it may affect your business, please contact the Employment Law Team.
Amy Hallam
Head of Employment
t: 0114 3496989
e: amy.hallam@brmlaw.co.uk
Ellie Leatherday
Senior Solicitor
t: 01246 564002
e: ellie.leatherday@brmlaw.co.uk
