At the beginning of November, inflation in the UK sat at 9.3%. This is one of the highest levels of inflation reported since 1982. However, according to the Bank of England, inflation is set to remain ‘very elevated’ throughout 2023.
As the market evolves and the cost-of-living crisis intensifies, workers in the UK are becoming increasingly anxious as their work-to-life balance starts to tip with many people beginning to take up second jobs. This has begun to impact performance at work, with two-thirds of managers reporting issues like rising absenteeism and lack of engagement due to high levels of stress.
There are ways to ease the burden and counter the balance positively.
AEL's perspective
At Arthur Employment Law we believe it is essential for employers to remain understanding during this economical crisis. We can recommend ways to support employees by encouraging the use of benefit packages that can help employees through these difficult times. For example, some of our clients have implemented budgeting schemes for work. While it is understandable that not all companies can offer monetary assistance, focusing on flexibility, benefits, environment and training can be a huge step towards supporting employees. We believe that employers carving a supportive and positive workplace culture can help to improve the well-being of employees. To keep up with rising costs, many employees are looking for ways to have multiple streams of income. Employees should always be cautious of the working time regulations limit, and not exceed this. While the cost-of-living crisis impacts motivation and mental health, to allow employers to aid you, employees need to keep lines of communication open and remain cautious of their options during economic uncertainty.
AEL recommends supporting employees where possible to manage budgets by signposting to money management initiatives or wellbeing at work schemes. Employers should be creative about ways to support employees such as creating benefit packages that offer discounts or reward good work with vouchers, bonuses or prizes.
While it is understandable that not all companies can offer monetary assistance or increase salaries in line with inflation, focusing on flexibility to accommodate second jobs, and training staff to help build aspirations for promotion with a higher salary range can go some way to easing stress caused by increased costs of living.
We believe that employers carving a supportive and positive workplace culture can help improve the well-being of employees during difficult times. Hybrid ways of working can ease the costs of childcare arrangements as one example of support. Employers should observe working time regulations to ensure staff’s wellbeing, health and safety at work are not compromised. If you are interested in designing an innovative benefits package or conducting a salary benchmarking exercise, do contact us.
