The Affordable Way to Help Employees Navigate the Cost-of-Living Crisis

Let’s begin with a universal truth: happy engaged employees are great productive employees. However, mounting stress in the workplace is damaging employees’ mental health and affecting businesses’ bottom lines.

In 2022 alone, stress accounted for 17 million lost working days in the UK. Unfortunately, while according to a poll by Gallup, stress levels are currently peaking at an all-time high, they are also not set to decrease at any point soon.

There are a few reasons behind this consistent increase – with the cost of living often cited as a main factor. Whilst many employers have offered pay raises and bonuses to help their staff cope, and yet, two-thirds of HR decision-makers (HRDMs) surveyed by Blackhawk Network (BHN) Extras have reported an increase in the number of staff requesting financial assistance since the cost-of-living crisis began.

The case for workplace benefits

At the same time, 40% of staff are looking for alternative, better paying employment opportunities to help them manage financial uncertainty, adding a new layer to the Great Resignation. And with businesses also trying to tighten their belts, the additional costs of hiring replacements and the loss in productivity during the process are unwelcome additional expenses.

The business implications are also only one part of the equation. People are suffering, with many having to make the choice between essentials like food and heating. Helping employees navigate the cost-of-living crisis won’t solve all their staff’s problems, but it is undoubtedly a good start.

What can employers do?

However, many employers feel as though they have expended all their options. With profits shrinking and bonuses stretched, they are running out of ways to retain employees.

This is where workplace benefits come into their own. Once considered a nice-to-have, they are becoming increasingly important in helping people afford day-to-day life. For example, last year more than 10% of commuters began cycling to work. For many, this was a way of cutting expenses – taking advantage of salary sacrifice schemes such as Cyclescheme and not having to pay for public transport or fuel costs.

There is, however, a disparity between the workplace benefits employers think their staff want versus what their employees are looking for.

Despite many HRDMs recognising the power that comes from a robust workplace benefit policy, only a quarter have already considered reviewing their package in response to the rising inflation. And a further quarter say they have no plans to change or expand their benefits this year. But by listening to what their employees want and need right now, they can massively help alleviate a lot of the pressure they are currently facing. For example, gym membership subsidies have long been an incredibly popular workplace perk. But now, rising food costs have made financial assistance with groceries one of the top priorities that employees are looking for in a benefits package.

It is important to remember that employees will have different needs, and these will evolve as personal circumstances change. People are increasingly being given the opportunity to work at home – this flexibility means that some benefits are less of a priority than they once were.

The perks of modern workplace benefits

Modern workplace benefits have made it possible for employees to customise their choices. By working with providers, employers can provide their staff with platforms that allow them to choose from an extensive range of benefits that are tailored to individual employees.

However, many employers who would like to offer this kind of flexibility feel that it would be prohibitively expensive to do so. This is not the case. There are platforms already available that offer free sign-up-and-go benefits, from the ever-popular cycle to work schemes to discounted technology, and assistance with groceries and everyday spending. Since these platforms don’t require sign-up costs, monthly per seat fees, or fixed contracts, businesses can provide employees with the kind of benefits they want, without hefty price tags for the business.

There are no signs that the cost-of-living crisis is set to abate any time soon. While the government has promised that inflation will be halved by the end of the year, grocery bills are still reflecting high price rises. But, despite the macroeconomic pressures we are all facing, HRDMs should know that there are options out there that will help them improve their workplaces for their employees.