30/08/2022
89% of British adults reported that their cost of living has increased according to a recent survey by ONS with around sixteen million people cutting back on food and essentials.
What can you do to help your employees through this difficult time?
Engage with your staff first, listen to their needs and concerns and then discuss what the best support could be. For example, you may have employees who are concerned by the rise of their utility bills, so they may want to be in the office more. Others might be affected from the cost of transport and may prefer to work from home. You should try to be as flexible as possible as you consider the following ideas.
Pay Increase and Saving Schemes
A rise in income is a clear and obvious way to make a difference. However, this is not always possible and inflation makes this a difficult option for businesses. There are other ways to help though such as a salary sacrifice scheme.
This allows employees to buy things through their company payroll, thus reducing the amount of tax they pay and in turn, help save them money. This can include payments for mobile phones, gym membership, bus passes, company cars, bikes and even health and dental plans.
Health and Wellbeing Support
A happy and healthy workplace helps employees flourish. According to mental health charity, Mind, money worries can have an adverse effect on your mental health. Being a caring and supportive employer is the key to workplace morale and wellbeing, as well as helping your team reach their potential. It’s therefore important to select health and wellbeing services that will make a real difference to your team.
Other support can be offered through financial planning or commuter subsidies, hardship loans or pension contributions. Signposting useful social enterprises such as the Reuse Network or as mentioned previously, Mind, who offer free resources on creating open and supportive workplaces.
There are simple ways of supporting staff with greater working flexibility. This could help alleviate the pressure for working carers or those with child care responsibilities. Some employees may be working two jobs in order to make ends meet.
You must ensure that these employees are working no longer than a 48-hour week, due to the Working Time Regulations. Working too many hours could have a detrimental effect on employee performance whilst increasing stress and anxiety.
Income Streaming
This relatively new concept allows employees to draw some of their wages prior to payday. This can help employees with cashflow issues and help them better manage their financial situation.
One model available is via a provider fastPAYE which allows employers to fund the streaming meaning there is no creation of debt. It does not charge a fee for people on minimum wage and provides the employer with control over how much, when and how many times someone can draw money from their pay cheque.
As an employer you should be offering robust advice and guidance where possible. If you have any questions about how to support your workforce through the cost-of-living crisis then contact Sentient now.
