How to Help Employees Through the Rising Cost of Living

There is no getting away from the cost of living crisis, and it’s something that is already affecting a lot of adults in the UK. People are already starting to cut back on their spending, but that only does so much. Many employees are likely to be struggling with the rising cost of living, which is why it’s important for employers to step in and help as much as they can. Though offering a pay rise is an obvious answer to the problem, this is not always a viable option. 

Thankfully, there are a number of other options. We have taken a look at the many ways that you, as an employer and business, can help employees manage financially. By doing so, you are helping them to improve their financial wellbeing and money management. 

Top Ways to Help Staff Through the Cost of Living Crisis

• Offer Employee Discounts - Many workplaces help their employees to save money by offering employee discounts on a variety of things, such as gym memberships and transport. This can help employees to cut down on their spending, without having to sacrifice hobbies and days out. Discounts on eating out, days out, technology purchases and retailers are all commonly offered.

• Set up an Employee Assistance Programme - An Employee Assistance Programme (EAP) is there to help employees deal with personal problems, many of which could impact their work performance and wellbeing if not dealt with correctly. EAPs can help with support by offering online resources, legal support and counselling. These could all be out of reach if someone is struggling financially.

• Start Salary Sacrifice Schemes - Though a lot of employers already help employees save money by letting them pay pension contributions through their salary, this can also be done for a lot of other things. Introducing salary sacrifice schemes for things such as company cars, mobile phones, bus passes and health care can be hugely beneficial to employees. It reduces the amount of tax paid and saves employees money.

• Provide Debt Support - A lot of adults in the UK are concerned about being in debt, which is why providing debt support can be such a huge help to employees. Support can be given in all different forms including advice, help managing debt repayments and finding the right professional help. Some companies even offer loan consolidation through payroll, which is also something else to consider.

• Help Employees Boost Their Savings - The rising cost of living has led to a lot of people reducing or stopping their regular savings, but it’s important that those who can afford to save continue to do so. Employers can help employees by offering workplace ISAs and investment accounts, with payments being taken directly from their salary. This makes saving effortless.

• Highlight the Importance of Pensions - When money is tight, a lot of people consider reading their pension contributions, thinking that they will simply make up the difference later on in life. With the cost of living on the rise, many people are planning to cut down on their workplace pension contributions. However, as a workplace pension is a huge benefit of being an employee, this isn’t always recommended. As an employer, you should highlight the importance of pensions and encourage employees to continue paying if they can.

• Direct Employees to External Support - There are a lot of places to find financial support, but some of your employees might not know about them. This is why you should direct them to as many external support services as possible. Citizens Advice can help with grants and benefits, whilst MoneyHelper has a budget planner that everyone can use. StepChange and National Debtline are there to help with staying on top of money owed.

• Shout About Your Benefits - If you offer benefits as a business, make sure employees know how to take advantage of them. Communicate the financial wellbeing support that’s in place, and make sure everyone knows how to access employee benefits should they need them. A surprising number of people are unaware of just how many benefits their employee offers.

• Encourage People to Be Accepting of Money Worries - There is a huge stigma about debt and money worries, so try to remove this in the workplace. People sometimes feel ashamed or embarrassed about financial problems, which can mean that they are less likely to seek help. By getting rid of the stigma, you can encourage employees to access support and not deal with ever