Employers aim to support employees as the cost-of-living crisis soars

The cost-of-living crisis seems to have stolen the headlines from Covid but it is not just a new headline for the media to sensationalise – it is real and its impacts are being felt by everyone no matter what their financial or employment situation.

Many people are turning to their employers for support as prices for food, energy and other essential goods and service soar. In turn, employers are looking at what they can do to help their most valuable asset, their employees.

The Chartered Institute of Personnel and Development (CIPD) has put together some practical information for employers to support their employees through the cost-of-living crisis.

Several UK employers are generously topping up pay packets with a cost-of-living payment. The CIPD’s summer Labour Market Outlook for 2022 finds that 15% of organisations have paid, or are planning to pay, such a payment to some or all their workers, while a further 15% have the matter under review. Private sector firms are most likely to have paid this bonus (18%) – especially those in the primary and utilities (30%), financial services (26%), and construction (25%) sectors.

For some companies, especially smaller sized companies, this may not be feasible but there are other ways to help employees stress and anxiety levels. Spend time reviewing your financial wellbeing policies and benefits packages to make sure they are working as hard as they can and implement any changes – especially for those that are most likely to be struggling to make ends meet.

The CIPD suggest the following things to consider:

·       Review your reward strategy – if you can afford to offer a cost-of-living bonus, make sure it doesn’t inadvertently do more harm than good for those who claim Universal Credit or Tax Credits.

·       Review your financial wellbeing policy – do your people know what help is on offer and how to get it? Communicate clearly.

·       Review your benefits package – is it working hard enough for those most in need? Again, does everyone know what’s on offer and how to access it?

·       Train your managers – an empathetic and approachable management style can help normalise conversations about money, and let employees seek the help they need.

·       Examine the CIPD Reward management survey, which looks at the various ways employers are helping with financial wellbeing and tackling in-work poverty.

Full details of the CIPD report with advice and guidance can be found here: https://www.cipd.co.uk/knowledge/work/trends/labour-market-outlook#gref