With inflation hitting its highest level for 40 years and prices for food, fuel and energy prices soaring, the “cost-of-living crisis” is having an impact on employees across the United Kingdom.
For some employers, the cost-of-living crisis has already started to affect their employees, which has in turn led to a decrease in productivity. For many, the notion of offering pay raises and the like is too expensive. So, what can employers do?
Options that employers could consider include:
- Hybrid (flexible) work arrangements to reduce travel costs.
- Interest-free crisis loans.
- Season ticket loans.
- Access to staff discounts.
- Financial well-being schemes/assistance.
- Selling back unused holiday entitlement, subject to the employee using their statutory minimum requirement.
- Salary sacrifice schemes for cycle-to-work, health/dental care and child-care vouchers.
- Introducing financial education programs to teach staff about budgeting, saving, debt management and retirement planning.
With inflation soaring, some U.K. employers are topping up pay with one-off payments. Employers could communicate with staff—for example, via anonymous surveys. This could help the employer understand the hardships being faced, the options available and the types of support that may be useful to increase productivity and avoid the spiraling costs of “absenteeism.”
Taking steps to look after the financial well-being of employees can help to strengthen their financial resilience to help with the cost-of-living crisis and help to safeguard them for the future also.
It is important to note that businesses are also facing price hikes, meaning it is crucial that a balance is struck between the needs of the employer and the employee. Recently, we have seen pubs and restaurants considering their opening days/times in light of rising energy bills while small independent coffee shops may be forced to close as a result of unprecedented increases in utility costs.
Michael Pope is an attorney with Grant Saw Solicitors in Dartford, England, U.K. © 2022 Grant Saw Solicitors. All rights reserved. Reposted with permission of Lexology.