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Employers ' guide to helping staff through the Cost of Living Crisis
Richardson Swift director Calvin Healy reviews what steps business owners can take to help staff survive the current financial storm without impacting profit .
UK inflation rate rose by over 9 % in the year leading up to May 2022 . That means everything ’ s costing more and salaries are unable to keep up .
Financial pressures are coming from every direction and research shows that the stress staff are feeling as they worry about their ability to pay the bills and put food on the table , may also impact their productivity in the workplace .
Of course , we ’ d all like a pay rise but putting up salaries to raise staff pay to keep pace with inflation is simply not possible for most businesses .
The Money and Pensions Service provide a useful definition of financial wellbeing :
" Knowing that you can pay the bills today , can deal with the unexpected , and are on track for a healthy financial future . In short : feeling confident and empowered about your money ,"
So as an employer , what benefits could you introduce to support your staff ’ s health and financial wellbeing without creating adverse effects on your own bottom line ?
The team at RS have put together some ideas on employee benefits , which are designed to assist staff members ’ financial health without negative effects for the employer .
The financial stress caused by the rise in everyday prices has had a huge impact on staff ’ s physical and mental wellbeing . Research from the British Association for Counselling and Psychotherapy 2022 revealed :
• 44 % of employees are anxious / nervous about being able to pay bills
• 16 % said they are losing sleep due to money worries
• 22 % said they have started cutting back on activities helping their mental health e . g ., gym memberships or art classes
Employee Assistance Programmes ( EAPs )
Stress caused by concerns over making ends meet could seriously affect how well your staff perform as well as causing issues around staff turnover and sick leave that could end up costing your business money .
The good news is that services provided by employers via EAPs , such as debt and mental health counselling , are no longer seen as taxable benefits . So , these services can be provided free for the employee without having any impact on they tax they pay .
Not all services provided via EAPs are exempt , however , financial , legal or tax advice for instance would still be considered a taxable benefit , so it would be wise to check with your accountant at the outset .
Discount schemes
Subscribing to an employee discount scheme can be a great way to help employees ’ pay packets go further and increase their overall financial well-being . And as long as the subscription per employee is under £ 50 per year the benefit is tax exempt .
Typically , companies such as Perkbox , charge around £ 4 per employee per month , so it is possible to keep this cost below the threshold .
These schemes are essentially digital platforms that have negotiated bulk discounts for their members . Typically , employees will be able to get discounts for everything from gym membership to their morning coffee . The exact amount they save depends on the quality of the scheme , and how much they use it , but discounts of up to 20 % are not unusual , plus occasional special offers on big ticket items like holidays and technology , as well as free offers .
They ’ re especially effective when they offer discounts for everyday essentials , like discounts at the likes of M & S and Sainsbury ’ s .
It might also be worth looking into teaming up with local businesses up to offer staff discounts to those employed by workplaces in the same geographic area . This is seen as a way of capturing local footfall and is particularly effective for businesses such as gyms , retail stores and restaurants . But even if your business does not fall into these categories , you can benefit your employees by getting involved , and potentially attract new customers from the local area . Local traders ’ associations and the Chamber of Commerce are a good place to start to get assistance setting up co-operation agreements or just finding out about those already running .
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