Throughout March the CIPD had a strong voice on some key issues in the world of work. They are calling on employers to look at ways to improve the financial security of their workers as the cost-of-living continues to bite.
It is important to encourage people to want to work and to feel that working their way out of poverty is both possible and worth doing. Long hours and low wages only fuel a reliance on the state, which is an unhealthy long-term position for everyone. The increasing cost bases are hitting employers as well so thinking about employee financial security could seem like an additional burden. The minimum wage has just increased nearly 8% and supply chains are piling on increases in transport, raw materials and energy as well.
Why should employers take action?
Supporting your people to achieve a decent standard of living is an essential element of good work and responsible business. Research shows, that when we’re worried about money, our work suffers. Encouraging conversations about money worries helps people feel more confident and empowered, and more ready to face what life and work throws at them.
Businesses who pay the voluntary real Living Wage report several business benefits including improved recruitment and retention and better relations between staff and managers.
So, what can employers do?
The most recent Employer survey from the CIPD in March 22 found the following elements to be the most important in providing financial security for employees:
- provide a fair and liveable wage (96%)
- support in-work progression to help people increase their earning potential (87%)
- support financial wellbeing by offering and signposting benefits and financial education (71%).
Have a think about what can be offered to add value without adding hugely to your cost base. For example, partnering with local businesses who can offer your people an Independent Financial Planning Advice Service, or an independent household bills review is a good start. If these things can be done during the working day at your site, the convenience will be a boost to staff, there are possible savings for your people and you are also supporting your local business community.
There are plenty of options for supporting your teams and many people will have different priorities depending on their stage in life and own personal circumstances. Utilize your staff surveys or consultative groups to feedback the priorities for your own business.
At Oyster HR we always suggest that you use survey data, appraisal or supervision feedback along with your HR Dashboard performance to help shape and inform your ongoing HR Strategy. That of course means you need to be asking the right kinds of questions in the first place.
For a no obligation discussion about these or other pressing HR matters – we are happy to chat! [email protected]