In recent months we have seen significant changes that have had a direct effect on the overall cost of living. Factors including the fuel and energy price increases have had an impact on everyone in the UK. The COVID-19 pandemic took its toll on the UK Government and the increases that we are now experiencing may be a result of the damage that the global pandemic caused.
The cost of living effects
Research by Visier has found that out of 2,010 people in employment:
- 71% believed their employers hadn’t adequately kept up their pay with the cost of inflation.
- 43% of respondents would feel forced to find other ways to make money if their employer did not support them
- 20% were prepared to resign to take a job with a higher salary.
The effects of the cost-of-living crisis is having a noticeable impact on most UK adults. Further research conducted by Opinium on behalf of MetLife UK, also found that, out of 1,428 UK workers:
- 31% reported a loss of sleep
- 21% reported feeling mentally or physically exhausted
- 64% have felt stressed or anxious
All as a direct result of financial worries. Understandably all the above will have a direct impact on employee’s performance, morale, and motivation at work.
What can employers do?
Considering the soaring prices of energy, food, and other essential goods and services, many UK employers are wondering what they can do to best support their employees. Even if employers are unable to offer inflation-beating pay rises, there are a number of ways they can offer support to employees to help ease their financial worries:
- Open up the communication channels with employees to normalise conversations about money and letting them know who they can talk to about any concerns they have.
- Send out a memo to staff to remind them of both the company and state benefits they may be eligible for
- Signpost employees to where they can find free impartial financial guidance and information to help them with their money worries.
- Focusing on upskilling staff for promotions
- Consider introducing a financial wellbeing policy which helps employees to improve their financial health