Inflation impact is felt by all Americans – but not at the same magnitude. With the rising cost of living, layoffs, inflation, and recession, many American workers are stressed, especially about their finances. Annual inflation in the U.S. reached 7.1% in the 12 months ending November 2022. The inflation impact comes on the heels of the Covid-19 pandemic.
Now, HR leaders are forced to manage the crisis of rising costs and the resulting financial stress, which manifests in the workplace as declining morale and job satisfaction. The inflation impact also brings: lower productivity, higher turnover, and increased absenteeism.
Growing numbers of employees are looking to their employers to help ease the financial burden of the higher costs of everything from groceries and housing to childcare and therapy. In many cases, salaries have not increased over the same time period, so employees are looking for subsidized benefits at work to help fill in the gaps.
Here are some of the ways employers are meeting that need, according to a recent article in BenefitsPro:
- One-time cost of living bonuses;
- Support with caregiving, care navigation, and virtual care,
- Packaged therapy visits; and
- Financial planning tools to help employees improve money management skills.
Of course, not all companies have the budget to successfully manage inflation impact by rolling out robust benefits. In those instances, employers can benefit from providing increased education to raise awareness of existing benefits. Many health programs offer care navigation, and guidance services to help employees make the most of the benefits available in their plan. Other companies are attempting to help workers deal with inflation impact by offering employees time off. This is so employees can sort out financial issues or help with caregiving. All in the interest of helping to lower workers stress levels.
Job stability is another source of concern for employees, particularly amid layoffs and hiring freezes. Staffing changes can dampen productivity and morale at a time when employers are focused on fostering peak productivity and performance while doing more with less. Employers need to pay careful attention to employees’ mental health. Benefits such as career coaching and therapy are now more highly valued be the workforce. For employees returning to the office, employers can tout commuter benefits, office perks, and socialization opportunities that make employees feel included and offer a morale boost.
Despite recent layoffs, surprisingly, the unemployment rate is still relatively low. Employees are apt to seek opportunities elsewhere if they aren’t happy where they are. Employers must focus on supporting workers’ personal, professional, and financial well-being in order to recruit and retain top talent. It is time to think outside the box when it comes to benefits, and employers should do what they can to reduce the inflation impact by investing in their employees.
