4 ways employers can support staff through the cost-of-living crisis in 2023

The rising cost of living is still a very real problem for workers across the globe; and if money worries are negatively impacting the financial wellbeing of your team – they are impacting your organisation.

Delaying action is not an option, so what should employers be doing now to support their staff through the cost-of-living crisis?

#1 Focus on savings and re-building financial resilience

Recent data from the State of Financial Wellbeing index shows 50% of UK employees want their employer to better support them to save money – ahead of anything else. Despite this clear preference just 18% of employers plan to do so.

The pandemic significantly affected the savings of UK workers, and they are still feeling this impact in 2023. A 45% rise in negative life events throughout 2020 meant employees were increasingly forced to raid savings for daily living expenses. Even pre-pandemic, 50% of UK households didn’t have enough saved to cover an unexpected bill of ￡100.?

What should employers do? Focus on the how. Most people intrinsically understand why they need to save, but it’s the gap between knowledge and action that’s difficult to bridge. Proven technology, such as Wagestream’s automated build product, makes it as easy as possible to set aside money every pay cycle.?

#2 Spin up a cost-of-living money signposting service

It’s hard to talk about money and this puts line managers and other internal stakeholders off starting a conversation. But it’s important to note the role of the organisation is not to solve money problems, but to signpost employees to the right services and tools so they can support their own financial wellbeing.

Employees in crisis may struggle to find the support they need, and one option to tackle this is to provide one-to-one financial coaching , which provides a personalised signposting service along with accountability for behavioural change, and is important to improving long-term financial wellbeing.

#3 Challenge the stigma to reduce isolation

The cost-of-living rises are putting pressure on UK employees and increasing worry. In our research, we found that 68% of those experiencing stress because of money did not tell their employer about their troubles – and most cited embarrassment or shame as the primary factor behind their decision not to share.

This stigma is entrenched, but the mental health stigma was entrenched too and as a society we’ve made positive progress there. When it comes to money, there are multiple things employers should be. One easy step is to use every opportunity (and there are lots) to open the dialogue about money: there are external prompts, such as Talk Money Week (6-10 November) as well as internal prompts such as pensions reviews and promotions.

#4 Do a ‘cost of coming to work’ audit

Do you know how much it costs for your employees to come to work for you? Those facing additional income pressure due to the cost-of-living crisis may be hit hard by some of these.

Do most of your staff live a long way from the workplace, making them reliant on their cars (petrol is rising and the costs of raw materials for repairs has gone up)? Do they still have to wait six weeks for their first paycheck when they join? Do they need to pay for uniforms upfront? Do you offer season ticket loans? Must people wait 4 weeks to get repaid expenses?

Some factors you can control and some you can’t, but doing this audit may throw up some genuinely easy ways that you can adjust your policies in order to better support people through what is increasing and sustained pressure on their ability to make ends meet on a day-to-day basis.

Worried the cost-of-living crisis is harming your staff? Download the State of Financial Wellbeing: UK Workplace Report report, based on the views of 5,000 UK employees and 600 HR decision-makers.