How rising living costs may affect Employee Wellbeing

Categorised in: Employee Wellbeing, News

Monetary concerns are nothing new at this time of year. With the cost of Christmas still in mind, and plans for summer holidays starting to take shape, many of us try to save as much as possible in the late-winter months. Indeed, this period emphasises how closely linked Employee Wellbeing is to financial security.

Therefore, the beginning of 2022 has been particularly stressful. A cost-of-living crisis, fuelled by inflation, an increase to National Insurance contributions, and rising energy prices could severely hit working families this year. This is also coming whilst businesses and employees alike are recovering from the continuing impact of Covid-19. Essentially, these are anxious times for almost all of us.

Why could it damage Employee Wellbeing?

When money is tight, it can very easily influence wellness in the workplace. The increased need for every payslip can deter people from Searching for New Jobs, meaning some staff members can become stuck in Unfulfilling Professions. Moreover, fears of dismissal may lead to overworking as well as Employee Burnout. This can greatly damage office welfare as necessary breaks, such as Mental Health Days, are ignored.

Furthermore, if individuals are worried about how they’re going to heat their home or afford their weekly shopping, the damage will go beyond the workplace. Anxiety over money can erode mental health, and worsening employee wellbeing is just one area of this.

What can employers do?

There are numerous ways that employers can help their staff, which can be divided into financial and non-financial aid. And whilst the latter can have a real impact, financial solutions are ultimately recommended for companies that can afford it.

Financial help

• Increase the pay rates for all staff
• Raising the company’s starting wage
• Bring forward employee bonuses and/or in-house promotions
• Tie annual salaries to inflation

Non-financial support

• Make Your Payroll Easily Accessible to make budgeting more straightforward
• Offer employee wellbeing services as part of your Company Benefits Package
• Create a positive work environment with a HR Team that can help with staff concerns
• Provide access to external services if necessary, such as mental health charities like Mind and free advice sites like Money Helper

Hopefully the fears over the rising cost of living do not materialise, perhaps with the government stepping in to alleviate some of the issues. But, if financial worries do arise, then Hive360 aims to help your business and employees through it.

Our Payroll Solutions provide benefits and employee wellbeing services at no extra cost. Meanwhile, by making your payroll more efficient, we can save your company money in the long-term, so you can offer necessary financial help to your staff when it’s needed.

So, to find our more, check out a book an exploratory meeting today.