18 Oct 2022

How to support employees while tackling business challenges

Employers need to balance employee support with the cost of doing business during the economic squeeze

What does it take for businesses to succeed in uncertain times? The cost-of-living crisis is affecting millions of people. In turn, there are huge pressures facing businesses, including high interest rates, spiralling energy costs, a challenging employment market and a gloomy economic outlook. How can firms support employees as well as tackle this cost-of-doing-business crisis?

Some employers, worried about the impact of the financial squeeze on their workforce, are offering significant pay rises. This is understandable, given the post-pandemic battle to attract and retain talent.

However, with recession looming, many are also keenly aware of the risks and challenges over the longer term. There is a crucial need to look beyond simple salary increases, in order to avoid a “bubble and bust” situation.

Ways to support employees through the cost-of-living crisis

There is a lot of support that can be provided to employees with little or no financial cost to the employer, all of which could be wrapped up in a financial wellbeing strategy.

Organisations could review and recommunicate their employee benefits, for example. Some staff might be missing out on services that could reduce their financial burden. In one organisation, for instance, a financial wellbeing survey revealed that only 5% of employees used the discount scheme regularly, despite almost 20% finding it a challenge to meet their monthly financial commitments. Employers can also utilise additional services such as pension providers’ financial wellbeing hubs.

In addition, perhaps some internal policies could be improved, especially those that incur a financial burden. And consider what can be introduced or eased (e.g. car sharing, expense reimbursement, cost of workplace social events).

Signposting employees to free services is also important. There are a number of resources to help with energy costs, including government and Ofgem websites, as well as some that can provide debt advice, such as MoneyHelper.

Use data analytics to understand financial wellbeing

Start by analysing employee financial wellbeing data. This will confirm the issues being faced by employees, the scale of them and impact on the organisation. Understand any gender bias in benefit take-up as well. More women than men will be affected by the cost-of-living crisis, because low pay is a gendered issue - the Office for National Statistics reported a 15.4% gender pay gap in 2021.

How employers support their people depends on the unique make-up of the organisation – what makes it unique? We call it Employer DNA.

By properly analysing the data an organisation holds, this information can be turned into intelligence, which can then be used to make more informed decisions that will help employees and deliver real transformation within the business.

Building business resilience and spending smarter

We are holding an online broadcast on 20 October at 10am. Survive to thrive: building business resilience and spending smarter will consider the changing economic landscape and the pressures facing businesses and employees. Join panellists from Barnett Waddingham and the CBI to learn how organisations can boost their resilience and spend smarter now, in order to shape their future success. Register here.