As workers become more concerned about inflation, employers may wonder what they can do to help. A happy workforce is a productive workforce, and grappling with the uncertainty associated with rising prices and economic turmoil can leave any professional feeling a little unsettled. So what is an effective way employers can help support them?
As business leaders themselves, the members of Council for Young Entrepreneurs have some ideas. From a little reassurance to help with day-to-day expenses, there are plenty of ways companies can provide their workforce with greater financial stability. Consider implementing one of the following seven suggestions to give your employees some economic peace of mind.
Members pictured from left to right.
Photos courtesy of the individual members.
1. Assure them that they will be taken care of
An effective way for an employer to support employees concerned about inflation is to reassure them verbally and financially. I have personally spoken to my employees to tell them that regardless of inflation, they will be fairly compensated and their contributions will be rewarded. In addition to just telling, I’ve also significantly increased compensation for all my employees who have performed at or above expectations. In times of inflation, it is critical that employees are kept informed and well compensated to quell their fears. – Jared Weitz, United Capital Source Inc.
2. Offer student loan debt relief
One in five Americans who have gone to college have done so student debt, meaning employers can step in to offer debt relief. The fear and anxiety of not being able to pay their student debt in the midst of inflation can be debilitating for employees and affect their work productivity. Providing for student debt is often a good way to retain employees, as they are more likely to stay longer. Companies can also negotiate a work commitment period from the employee in exchange for help paying a loan. A good idea would be to make monthly contributions, no matter how small the amount, but also put a limit on the maximum amount you can contribute. – Brian David Crane, Spread great ideas
3. Help with daily expenses
I strongly encourage to increase their salary. If you can raise wages, you’re supporting your employees where it matters most: their wallets. If you can’t raise wages, you can still provide financial support to your employees. For example, you can give them gift cards for gas, groceries, or restaurants. I’d offer a sensible amount – at least $200. A $25 card isn’t really going to help anyone. You can also see if you can give an employee discount on childcare costs, insurance premiums, gym subscriptions or company products. Another option is to offer a one-time bonus based on cost of living. If you can’t raise wages directly, there are plenty of other ways to help your employees financially and help offset the effects of inflation. – Shu Saito, All filters
4. Provide salary increases
Increase your employees’ salaries based on a fixed percentage or formula that changes with inflation. This may be a kind of scientific solution to combat inflation. Employees concerned about inflation should receive regular salary adjustments to ensure their wages remain competitive and keep pace with the cost of living. This may mean regularly reviewing your salary, making adjustments where necessary or implementing automatic salary increases based on current market standards. This means putting in place a policy whereby employee salaries are reviewed every year and adjusted for changes in inflation rates as reported by an independent third-party source. It ensures that employees are fairly rewarded for their work. – Candice Georgiadis, Digital day
5. Offer flexible work arrangements
Giving employees more control over their schedules and work environments can reduce their cost of living. For example, by offering the option to work from home or having flexible start and end times, employees can save on commuting and childcare costs. This can be especially helpful for employees who have long commutes or who face high transportation costs and other associated expenses. Flexible work arrangements can also help employees manage their time more effectively and potentially reduce the need for paid time off. This can be especially beneficial for employees trying to juggle work with other responsibilities, such as caring for children or elderly parents. – Vikas Agrawal, Infobrandz
6. Implement a financial wellness program
An effective way to support employees who are concerned about inflation is to offer a financial wellness program. This can help them make more informed decisions about their financial future and give them the tools and information they need to make responsible investments. This could include providing access to financial advisors, offering financial education courses or even giving employees access to discounted services such as online banking or credit counseling. As an employer, you can also offer direct financial support in the form of bonuses or salary increases. – Blair Williams, MemberPress
7. Allow custom benefits plans
As employees become more concerned about inflation, one way to support them is to allow them a modified benefits plan. This means they can decide what benefits they want the company to offer them. For example, if an individual does not want to take advantage of the health benefits and instead wants more money for children’s education, the company must grant their request. To keep things under control, a company can define a threshold for the amount that can be claimed by an individual. This might take some trial and error, but once perfected, custom benefits would be super useful for employees as they would be able to leverage the benefits that matter most to them. This can significantly improve loyalty and exponentially increase employee satisfaction in a company. – Jared Achison, WPForms
