Seven ways to support employees through the cost-of-living crisis

With trust in the politicians at an all-time low, Cliff Ettridge at The Team argues that business leaders should act as a surrogate for the state

 

The cost-of-living crisis has thrown the UK into turmoil. Everywhere people are grappling with rising costs, as economists at KPMG predict a recession that could last until the end of 2023. There has never been a more pressing time for businesses and their leaders to take responsibility and help their employees during this time of crisis.

 

Many have done so already: John Lewis set up £500 cost of living payments for employees, as well as offering staff free food over the Christmas period to help with rising costs. In June 2022, Lloyds Banking Group offered thousands of staff a one-off £1,000 payment to help with bills.

 

Yes, widespread pay rises would be the ideal and should happen, if possible, but with rising inflation and a real loss in earnings this isn’t always possible. However, businesses can still help cushion the blow from the current economic fallout.

 

There’s clearly a moral argument for this but also a rational argument: when someone is facing a monumental issue to worry about – such as whether they can afford to heat their home – how can you expect them to do their job to the best of their ability? Employee wellbeing is at the centre of productivity.

 

So, what can businesses do?

 

1. Don’t purpose-wash

Purpose has become a central component to businesses over the last few years. Leaders have spent a long time defining and shaping what their purpose is, hoping to attract talent, retain the best people and boost employee motivation.

 

Inclusivity and wellbeing is central to that, and now is the time for businesses to live it. Otherwise, its “purpose washing”: purporting to have a purpose that looks to the greater good of society, but leaving their own employees behind. It’s time to protect a business’s greatest asset: their people.

 

2. Put financial wellbeing at the heart of culture

Finances are going to be the biggest issue for employees, and it will take the biggest mental toll. If one-off payments, such as the ones given out by John Lewis and Lloyds, are possible, then this goes some way to help. As is making sure that when people come in, they can have something to eat and drink for free. That will be a huge help and costs businesses a lot less than handing out pay rises.

 

Add value to people’s lives by looking at where the costs are creeping in and proactively bring them down. Help can also be given by putting financial wellbeing, and the tools needed to manage finances and prepare for the future, at the heart of any wellbeing programmes a business has.

 

3. Flexibility

There has never been a more important time for businesses to embrace flexibility. For example, some employees won’t be able to afford childcare in the same way. They may need to work from home, or to shift the hours that they work. Others may need to save money from transport.

 

At the same time, the answer isn’t necessarily to send everyone home: some people might not be able to afford to heat their houses properly, so the office space needs to be open. If you’re a business with locations across the UK, could you create flexibility for people to go to different hubs or co-working spaces? There needs to be allowance for employees to work out what works best for them.

 

4. Don’t cut the training budget

In economic downturns, training budgets are some of the first for the chop. In reality, this is exactly the time when businesses need to be finding and delivering better ways to service customers and to innovate products. This requires investment in learning and development, even if that means relying more on peer-to-peer teaching and training.

 

Ensuring people are still gaining skills is also a valuable way for employees to continue to benefit from their organisation during tough times.

 

5. Constantly listen and respond

Leaders must put themselves in the shoes of the lowest paid workers and think about what their lives are like. However, the most important task is to listen to what those employees are saying. Ensure that the business is constantly open to new ways to help people.

 

Rather than saying “there’s a cost-of-living crisis and this is what we are doing”, the message should be “we’re thinking about ways in which we can help people and we want to know what your biggest issues are”. Then take those on board and actively respond to them.

 

6. Invest in the employee experience

Now is the time to invest in your employer brand and your employee experience more than ever. In a few years’ time, when we’re through this recession and the market is much more buoyant, your people will remember the messages you put out and how you treated them.

 

7. Don’t just react

Companies need to make the right judgement before any new programmes or processes are put in place. Plan and test something before its fully executed, because the ramifications could be very damaging if it goes wrong. I’ve seen businesses give a particular group of employees cash or a pay-rise, but the threshold for getting these boosts has meant others earning only a little more have felt abandoned, creating anger and animosity.

 

Instead, design a solution, test it, pilot it, and improve it. The initial thinking should always be: how can we create a culture that means we allow our people to survive and thrive?

 

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Cliff Ettridge is Director at The Team

 

Main image courtesy of iStockPhoto.com