Check in with your colleagues as cost of living crisis starts to bite
Spiralling inflation and increased cost of living is causing over one third (37%) of the UK workforce to consider changing jobs, as a new report from Totaljobs raises concerns about current wages not rising fast enough.
Meanwhile, a survey by KIS Finance has found that over 22% of those aged 18 to 35 have been forced to take on an additional job in order to make ends meet, as the cost-of-living crisis deepens.
Key statistics from the survey found:
•22% of those aged 18 to 35 have taken on an additional job to help them afford basic items such as rent, heating and food
•57% reported they are already struggling financially and expect things to get significantly worse in the near future
•The Southeast has been hardest hit, with 18% of the workforce forced to take on additional employment to make ends meet, with this rising to 20% in London
•Wales has been the second hardest-hit part of the UK, with 19% of those in Cardiff needing to find additional employment to pay their bills
With interest rates now at 1%, with a predicted 5th rise in a row next month, the push to contain consumer spending is likely to exacerbate the economic pain for many.
While the aim of increasing interest rates is to reduce spending in the economy, the reality is that it is daily essentials that are coming under pressure, and some of your colleagues or employees may have to choose between items such as food or heat.
Further increases in interest rates, predicted to be as high as 3% by the end of the year, will place additional pressures on those already struggling. Increases in rent and mortgage payments could even lead to a housing crisis, as more people fall behind with their payments.
Adrian Lewis, Commercial Director at Activ People HR says: “Spiralling energy and food prices, along with rising inflation will impact us all this year.
“We recommend all businesses carry out regular one to one interviews with employees, whether that’s regular appraisals system or monthly to create a safe space to speak with an employee could reveal issues which could be tackled.
“Creating an open and caring working environment will be key to supporting workers through the cost of living crisis and ensuring it doesn’t have too much of a detrimental effect on their financial or mental wellbeing.”
Harriet Shepherd, financial Wellbeing Manager at St. James’s Place Wealth Management, adds: “This issue needs to be taken seriously by employers, primarily for the benefit of their employees, but also for the success of the organisation and the economy as a whole.
“This means offering employees practical and emotional support for their financial wellbeing and their general mental health.
“Educating employees on financial terminology and encouraging conversations around money can help employees to understand the nature of financial stress and how it might be affecting them. Using the time when employees are at work to offer help and provide resources is a great way to get the message across. After all, this is when they are most likely to access it.”
This is a great time to explain the various financial rewards and schemes you offer and make that information accessible to your colleagues.
Offer specific sessions about those rewards and help employees to understand the packages that are financially linked, such as health insurance, protection insurance and discounts with local firms. These things are often overlooked, but they can make a real difference to people.
“If an employee wants to talk to someone, but they're not ready to speak to an adviser, you can still provide them with useful one-to-one support,” continues Harriet.
“Reputable financial advisers will have partners who will carry out guidance sessions with employees and employers can engage with these financial wellbeing providers to conduct one-to-one guidance sessions with employees.”