How smart employers are helping staff cope with inflation

by | Aug 2, 2022 | Technology

With inflation at a 40-year high, helping staff adjust to ever-increasing prices is the name of the game for progressive employers.

Obviously the best way to do it is to raise their salaries, which many have already done.

But wage increases can only go so far before feeding into the problem, ultimately adding to inflationary pressures.

So how bad is it?

According to the Bureau of Labor Statistics, by the end of July median weekly earnings of the nation’s 118.9 million full-time workers were up 5.2% on last year.

But the consumer price index increased by 9.1%, the largest 12-month increase since 1981.

That’s quite the gap.

So what’s a good — cost conscious — employer to do? Lots, as it happens. That’s because the right HR strategies can go a long way towards helping employees cope with the increased cost of living.

Drilling into the BLS figures shows price rises for some goods are higher than others, with food up 10.4%  and energy 41.6%.

Strip those out and the inflation rate was 5.9%, only slightly higher than the rise in median earnings.

Work smart, work hybrid

So, one way to help employees cope is to encourage work from home for those who can do it. Eradicating the commute saves on gas.

On the other hand, other team members might prefer to come to the office rather than pay for air-con or heating at home. If employers also offer subsidized canteens — an increasingly valuable carrot — staff can save more money by coming into the office.

In short, flexible options help staff to work in the way that su …

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