As employees grow more concerned with inflation, employers may be left wondering what they can do to help. A happy workforce is a productive workforce, and wrestling with the uncertainty that comes with rising prices and economic turmoil can leave any professional feeling a little off their game. So what’s one effective way employers can help support them?
As business leaders themselves, the members of Young Entrepreneur Council have a few ideas. From a little reassurance to assistance with everyday expenses, there are a multitude of ways companies can offer increased financial stability to their staff. Consider implementing any 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 They’ll Be Taken Care Of
One effective way an employer can support employees concerned with inflation is to reassure them verbally and monetarily. I have personally had conversations with my employees to tell them that, regardless of inflation, they will be compensated fairly and their contributions will be rewarded. In addition to simply telling them, I have also significantly increased compensation for all my employees who have performed at or above expectations. During inflationary times, it is crucial that employees are kept in the loop and compensated well to quell their fears. – Jared Weitz, United Capital Source Inc.
2. Offer Student Loan Debt Relief
One in every five Americans who has gone to college has student debt, which means employers can step in to offer debt relief. The fear and anxiety of being unable to pay their student loan debt amid inflation can be debilitating for employees, affecting their work productivity. Providing for student debt is often a great approach to retaining employees as they are likely to stay longer. Companies can also negotiate a work commitment period from the employee in exchange for loan payment assistance. A good idea would be to provide monthly contributions, however small the amount, but also have a cap on the maximum amount you could contribute. – Brian David Crane, Spread Great Ideas
3. Help With Day-To-Day Expenses
I highly encourage increasing their pay. If you can raise wages, you’ll support your employees where it matters most: their pocketbooks. However, if you can’t raise wages, you can still give your employees financial support. For example, you could give them gas, grocery or restaurant gift cards. I would offer a meaningful amount—at least $200. A card with $25 won’t really help anyone. You can also check to see if you can offer any employee discounts on child care costs, insurance premiums, gym memberships or company products. Another option is to offer a one-time bonus based on cost-of-living needs. If you can’t directly raise wages, there are lots 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 set percentage or formula that changes with the inflation rate. This can be a kind of scientific solution to fight inflation. Employees concerned about inflation need to receive regular salary adjustments to ensure that their pay stays competitive and keeps pace with the cost of living. This might mean conducting regular salary reviews, making adjustments as needed or implementing automatic salary increases based on current market standards. This would involve implementing a policy whereby employee salaries are reviewed each year and adjusted according to the changes in inflation rates as reported by an independent third-party source. It will ensure that employees are compensated fairly for their work. – Candice Georgiadis, Digital Day
5. Offer Flexible Work Arrangements
Allowing employees to have more control over their schedules and work environments can help reduce their cost of living. For example, offering the option to work from home or have flexible start and end times can help employees save on commuting and child care expenses. This can be especially helpful for employees who have long commutes or who face high costs for transportation 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 who are trying to balance work with other responsibilities, such as caring for children or aging parents. – Vikas Agrawal, Infobrandz
6. Implement A Financial Wellness Program
One effective way to support employees who are concerned with inflation is by offering 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 sound 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 provide direct financial assistance in the form of bonuses or salary increases. – Blair Williams, MemberPress
7. Allow Custom Benefits Plans
As employees grow more concerned with inflation, one way to support them is by allowing them to have a custom benefits plan. This means letting them decide which benefits they want the company to offer them. For example, if a person doesn’t want to utilize the health benefits and instead wants more funds for child education, the company should entertain their request. To keep things in check, a company can define a threshold for the amount that can be claimed by an individual. This may take some trial and error, but, once perfected, custom benefits would be super helpful for employees as they’d be able to leverage benefits that are the most important to them. This can significantly improve loyalty and increase employee satisfaction in a company exponentially. – Jared Atchison, WPForms