There’s no doubt that the last few months, inflation has affected several aspects of our daily lives as it’s reaching levels that national and world economies have not seen in the past several decades.
As inflation keeps rising, wage inflation is unable to keep pace with it and as a result more and more people are seeing their purchasing power decline as the paychecks that used to meet their needs are falling short today. In fact, according to the World Economic Forum, more than a fifth of workers are struggling to cope with the new economic landscape. With that being said, more and more employees are seeking new job opportunities with higher salaries in order to be able to cover their everyday life needs.
But what can companies do to help their employees adjust to this new reality and ease the economic burden that more and more households are facing?
To ensure that employees are able to maintain their standard of living and make ends meet, it is crucial for employers to offer financial and social benefits that can help mitigate the effects of inflation and wage stagnation. We have gathered some of these benefits below.
- Offer bonuses and incentives: Bonuses and incentives can provide a boost to employees’ income and help them make up for the effects of inflation. Employers can offer performance-based bonuses, profit sharing, or commission-based incentives to help employees stay ahead of the curve.
- Provide health insurance: Health insurance is a critical component of financial security, especially as the cost of healthcare continues to rise. Offering health insurance to employees can help reduce the financial burden of healthcare expenses and provide peace of mind for employees.
- Offer a retirement savings plan: Retirement savings plans can help employees prepare for their future financial needs. Employers can offer individual retirement accounts (IRAs), or other retirement savings plans to help employees build a strong financial foundation.
- Provide financial counseling and education: Many employees may not have a clear understanding of personal finance and how to manage their money in the face of inflation. Employers can offer financial counseling and education programs to help employees understand the impact of inflation on their finances and develop a plan to manage their money effectively.
- Weekly Paychecks: Waiting for payday every month can be extremely stressful for people who find it difficult to make ends meet. A solution to this problem can be offering paychecks on a weekly basis to easen employees’ burden.
- Offer flexible work arrangements: Flexible work arrangements, such as telecommuting, flexible hours, and part-time work, can help employees better manage the demands of work and home life. This can be especially helpful for employees who are struggling to make ends meet.
- Remote work: Even while some organizations have set aside 2023 for a return to the office, choosing a hybrid or remote-first arrangement can also be profitable. Employees who work remotely can save $12,000 a year on living expenses like transportation and other living expenses, according to research from FlexJobs.
- Offer wellness programs: Wellness programs, such as gym memberships, stress management classes, and health fairs, can help employees maintain their physical and mental well-being. This can help employees stay healthy, productive, and engaged at work.
- Caregiver benefits: Employees who look after aging parents or have kids in childcare typically experience greater financial stress and difficulty. Employers may think about providing assistance through additional paid time off, flexible work hours or even child daycare services.
- Provide opportunities for professional development: Professional development opportunities, such as training and education programs, can help employees grow and develop their skills, leading to better job security and higher salaries over time.
The benefits above are some ideas that will help employees keep up with the new economic reality but it’s vital to ask employees which aspect of their lives has been most affected by the inflation so that your efforts will be targeted and effective.
In conclusion, offering financial and social benefits to employees can help mitigate the effects of inflation and wage stagnation. By providing employees with the resources they need to maintain their standard of living, employers can ensure that their employees are able to meet their financial and social needs and contribute to the success of the organization.