The global economy is an uncomfortable place to be right now. Inflation is hitting everyone. For company leaders, the heat is on. Not only do you have to find a way to keep your company growing and profitable, you also have employees to consider. Helping employees navigate the cost-of-living crisis is an essential part of your role that can, during times of high inflation, feel daunting.
The fact is, the increase in inflation rates is creating long-term problems that will eventually have to be adjusted for when the economy levels out. However, in the short-term, the instability is the real problem. Right now, a key concern for your employees is money. Here’s how you can help them to feel more financially stable.
This Goes Without Saying: Give Pay Raise
This assumes your company is creatively and strategically adjusting its business model to make sure it is able to continue to profit. Everyone understands that inflation is hitting individuals and businesses at all levels. However, even though fear can lead to a feeling of need to conserve resources, increasing employee pay for inflation should be a high priority.
But if You can’t Afford Across the Board Pay Raises to Match Inflation…
Do the best you can and communicate. If you can raise salaries, but not enough, make sure you’re forthright with your employees before making pay changes. If you don’t, you’ll leave it up to their interpretation. Many people will see a raise that doesn’t match inflation as a pay cut or as a token allowance. It doesn’t actually solve anything. Make sure employees know that you have their welfare at heart. Also be transparent with them about the state of the company and why you can’t give them the full raise.
There are Other Ways You can Offer Relief
Part of employee stress is not having a full grasp of their own financial status. Support them in finding ways to better manage their money. You can offer an employee assistance program that provides financial counselling to help them make a plan for getting the most out of their money.
Another way to mitigate the feelings of insecurity and instability employees have is to offer more flexibility. Flex time and work-from-home options allow people to manage things like childcare if they happen to need to cut back on expenses (e.g. petrol for commuting to the office).
And No Matter What—Stay Human
Keep the “human” in human resources by offering clear communication, compassion, understanding, and assistance when possible. Your employees will recognise the effort and stick with you during these tough times if they know you’re on their side.
Contact us and let’s discuss your company’s total rewards. When was the last time you’ve audited them? Do you recognise the meaningful adjustments to retain your top talent? Let’s identify opportunities to improve your company’s position to attract and retain better talent.