Although employers may not be able to increase salaries to keep up with inflation, there are other more creative and affordable ways to support employee wellbeing during this time of financial uncertainty. All households will be affected as they need to spend more money on energy and food costs. Our recent survey found that 4 in 10 employees are worrying about money every day.
Employees who travel to work by car are already contending with a 33% increase in the cost of fuel compared to the previous year. And it’s this pace of inflation that’s really hurting people. Food prices have risen at their fastest rate in eight years.
How employee health is affected during times of financial difficulty
It’s low-income households who will be hardest hit by these price increases as they spend a larger proportion than average on non-negotiable bills such as energy and food costs. A recent report also found that a quarter of all employees in the UK have less than one month's savings; making them particularly vulnerable to these changing circumstances.[1] This means that household budgets will be squeezed and spending on the things that keep people in good health, such as leisure activities, holidays or routine check-ups and gym memberships, may be reduced.
Money worries can affect employee health in a variety of ways. The research is well established and shows how debt is bad for mental health. And it’s estimated that nearly half of people struggling with debt have a mental health issue.[1]
Constant worrying is a recipe for developing physical health conditions too. This can be because of people not getting the sleep and exercise they need to stay healthy.
Why businesses need to show their employees support
Employers should be asking how they can help soften the blow of the cost of living crisis for employees and their families. What that support looks like will be different for every business. But having a strategy for supporting mental, physical and financial wellbeing is key.
Many staff will be seeking pay rises where possible as an obvious solution to their growing list of expenses. But a one or two per cent pay rise will be quickly eaten up in the face of double-digit inflation numbers. This means that many employees will be evaluating their current employer with a critical eye - and another eye on what’s being offered from employers elsewhere. With many employees already looking for more flexible working conditions, this is sure to intensify an already competitive recruitment market.
All this means that employee health benefits are becoming more important if you hope to recruit and retain talent. Because it's more important than ever to engage with your employees and demonstrate that they’re valued.
Given the current strains on the health service, employees are now more likely to value benefits that provide ease of access to GPs and mental health support. They’re also looking to their employers to provide what are now considered as essential benefits, such as:
- access to a 24/7 GP helpline
- personal support for mental health and financial wellbeing issues via an Employee Assistance Programme (EAP)
- face-to-face counselling sessions, should they need it
Offering affordable health benefits that don’t break the bank alongside providing relevant employee support signposting can add real value to a workforce and help alleviate financial stress, mental and physical health concerns.
Unfortunately, the cost of living crisis will make life difficult for a lot of people. But it’s also an opportunity to build loyalty by showing employees you’re there for them through thick and thin. To achieve this, employers need to explore the creative ways businesses can help their employees offset rising living costs and make every pound count.
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