Soaring inflation rates have had a significant impact on businesses. Operational expenses have increased, resulting in hard decisions like automating processes, cutting hours, getting rid of inventory, laying off employees, and raising the cost of services to keep operations running while balancing their budgets. Although implementing these practices may be necessary to survive these trying times, most businesses overlook the impact it has on their most valuable assets – their employees.
How Rising Inflation Affects Employees (And Your Business)
The corporate mindset for employees is that they get paid to do a job and should do so to the best of their abilities despite personal circumstances. It sounds good in theory, but dividing your professional and personal life isn’t easy. When things aren’t right at home, it impacts your physical and emotional well-being, which trickles down to your mood and productivity in the workplace.
When you add something as substantial as high inflation, it complicates a person’s ability to compartmentalize the issues in their everyday life. Your employees are struggling financially. Some of them may be overwhelmed with debt, in the midst of foreclosure, unable to pay the bills, or going without basic necessities like food, clean water, and electricity. This takes a toll on them and hinders their performance at work.
How You Can Help
Although you’re not obligated to do anything other than issue a paycheck and comply with local and federal employment laws, assisting your employees is the right thing to do. Businesses that support employees during economically challenging times improve work-life balance, workplace morale, performance, and productivity. If you’re curious about how to help your team, consider these suggestions below.
Small Pay Increases
Your company budget may not accommodate multiple hundred or thousand dollar salary increases, but small raises can go a long way. Offering your employees an additional $.50 to $1 per hour can give them some extra cash to cover their expenses.
Remote Working Arrangements
When the pandemic caused everyone to shelter in place and transition to digital platforms, many consumers found that they saved a lot of money. They didn’t have to pay for gas, they put less wear and tear on their vehicle (which equates to fewer repairs), there wasn’t a need for childcare, and they had time to prepare meals at home and save on dining out.
Remote working also saved businesses money on operational costs. So, why not help everyone out by offering employees remote work arrangements? Whether they work from home full or part-time, it will save money and ease the pressure in their personal lives.
Free Or Discounted Products And Services
As a business owner, you have a stronger network and purchasing power than your employees. Use these resources to your advantage to support your team. Connect with businesses in the area that offer products and services that your employees need most. Most companies will jump at the opportunity as collaborating with you improves their reputation and increases sales.
Come up with an agreement that allows your employees to gain access for free or at a discounted price. Whether it’s groceries, a gym membership, childcare services, or health and wellness products, the savings can reduce your employee’s financial burdens.
Become A Resource Center
Sometimes, all your employees need is advice or guidance to find the answers to their problems. For example, maybe an employee has expressed having difficulty affording their mortgage. You could provide them with a list of government and private agencies that offer assistance.
You might also make recommendations on how to find more affordable housing. Moving can be expensive, but with the right resources such as helpful real estate agents, local moving companies, storage facilities, or an apartment moving checklist, the process can be a savvy move. The information you provide can give them the guidance they need to overcome their financial hardship and ease the emotional pressure.
Finally, use your personal experience and wisdom to provide resourceful information to your employees. Your opinion, guidance, or shared experiences can help them avoid common obstacles and make necessary changes to improve their circumstances.
These are economically challenging times for everyone. Although a business owner’s first priority is to make effective changes to survive, you must forget your employees. When your staff is struggling outside of the workplace, it translates into their performance. Do what you can to let your team know that you’re in their corner as they weather this storm. In doing so, you create a healthy work environment with happy employees that are committed to continuing to help you reach company goals.
