What We’re Reading – As inflation hits 40-year high, how is it changing employer strategy?

We certainly don’t need to watch the news to know that inflation is ravaging our country’s economy.  The price of just about everything has risen and paychecks fall short.  As managers, what can we do when our company’s budget is not expanding to allow for higher wages and our employees are struggling?   Some outside-the-box thinking may be in order, as we add our ideas to this article from Healthcare Executive’s suggestions to lighten the stress and financial burden.

Benefits. In the area of employee benefits, the author suggests assistance with tuition or student loan repayment.  She also states that employers aren’t moving quickly enough to offer benefits that address pain points. As consultants who offer HR support, we’ve sometimes been called upon to conduct in-depth employee surveys, suitable for a deep dive on worker sentiment, but what about a quick survey aimed at these economic times?  Perhaps a short three-question anonymous check can give you targeted information to spur more timely and responsive solutions for the right now. Ask about main issues and then focus a small committee on quick-to-launch solutions.  

Healthcare costs.  While we can’t do anything about actual premiums, perhaps the company can: cover a higher percentage of the employee premium; or for larger employers, offer a wider selection of plans. For those who offer health savings accounts (HSAs), what percentage of the workforce uses them?  It may be a good idea to shows employees (again) what they can save by using an HSA. 

Remote work. Many organizations were rethinking remote work and attempting a return to the office employee wave.  However, consider that – if feasible for your industry – remote work can lower employee expense (think gas, clothing, lunches, time) and provide a mental health boost.  So too, moving to a four-day work-week – if possible – may balance your workforce’s stress even if you stagger the schedules to assure all-week coverage.  Commit your company’s resources in IT and HR to moving those who want this option to a successful, longer-term remote work environment.  

Retirement.  With workers trying to live through the here & now, talk of retirement can seem out of touch.  The article’s author suggested reminding your workforce to continue investing in their retirement.  But she also mentioned that some employers are making special contributions to employee retirement accounts.  While raises would be a boon, they may not be sufficient to balance out inflation’s bite, but the added 401(k) contribution may at least offer a small silver lining.

Compensation.  A recent employer survey noted that 2/3 of companies were planning to make compensation changes.  Every little bit helps, as they say, and any increase will surely be met with appreciation.  However, for companies that are financially strapped, some other ideas are:  short-term bonuses or gifts, which are helpful on the spot but don’t have to be long-term if the company’s finances can’t handle that; helping with gasoline costs, for example, with a gas card or subsidy; other gift cards, such as for food or sundries that convey concern and defray an expense or two.

Times are tough and sometimes, as managers, we’re overwhelmed with the desire to make sweeping gestures that often get bottlenecked in the system.  Smaller, more frequent tokens of help and concern may be easier to pull off quickly in almost any work environment. 

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