Employees are currently facing one of Britain’s most significant increases in the cost of living. UK inflation has risen to 7%, the highest since 1992, with it predicted to peak at the end of the year. Here we look at how to support your team through the current cost of living crisis.
Many businesses and employers will also be facing rising costs, so increasing pay may not be possible. Knowing how best to handle salary reviews will be important as will ensuring that you have a competitive offering to support staff retention, and there are many benefits you can offer to support staff:
Employee Assistance Programmes (EAPs)
If your organisation is unable to offer a wage increase, consider offering alternative ways to ease the burden on employees and potential financial challenges.
One way is through investing in Employee Assistance Programmes which allow for employees to get valuable and expert support on a variety of issues they may be facing including debt management and financial planning, as well as possibly access counselling.
Overall employers and HR departments play a key role in helping employees through these tough times. Whether that’s through increased pay or other means, acknowledging the situation and showing your support will go a long way and could even help boost morale, increase loyalty and improve your team’s performance.
The Office for National Statistics has revealed that wages have increased at a rate of 5.4%. It is important to acknowledge that this does not keep up with the rate of inflation, meaning workers are seeing a reduction in their net income.
Whilst the government has not yet provided a solution to this, despite calls from organisations such as the Trades Union Congress (TUC), employers should still be prepared to carry out pay reviews. Have in place a clear policy and structure around pay and promotions so should an employee raise the question, your organisation is prepared when considering this request.
Discussions should be open and transparent, salaries should be carefully analysed and pay rises carefully considered. In many cases, organisations implement a yearly wage increase, however, due to the current cost of living, some employers may want to bring this forward.
Benchmarking your employee salary and benefits against the competition is another way to ensure that your employees are receiving a fair and representative package compared to similar roles within the sector. This data can also be used to focus on differences in roles in your own and other sectors, and help to support current and future reward development and management decisions.
To ensure your business or HR department is equipped with the right policies and advice to support your team through the current cost of living crisis, get in touch with our expert team.