Cost of Living & Your Employees

As it continues to dominate headlines across the globe, with images of eye watering prices at the pumps, electric meters and supermarket shelves, it’s important as a business that you ask how the cost of living crisis isn’t just affecting you or your customers, but most importantly your staff.?

Money can fuel worry and anxiety for your colleagues at home, affecting their performance and motivation at work. But what can you do as an employer? Let’s focus on practical cultural and financial tips to help your colleagues battle this cost of living crisis, and the importance of demonstrating that you have their backs in such a tough economic climate.?

Cost of Living: Ireland?

What really is the situation in Ireland right now? In June, annual inflation rose to a staggering 9.6%. A July survey found 64% of Irish people feel they are ‘living on the breadline, while 25% reported that they had already missed a mortgage or rent payment.?

Meanwhile, a food bank in Cork City reported in July that they had already registered almost as many new clients in the past 6 months as they did in the whole of 2021. This shouldn’t come as a surprise; consumer prices in Ireland are 40% higher than the EU average, whilst housing costs including rent, mortgages and electricity currently sit at 88.5% above the EU average.?

The cost of living affects everyone in Ireland, regardless of their economic situation. But for those in low income households, this could be what sends them over the edge into poverty. For your staff, they’ll feel the pinch in more ways than one - if they have to commute to your offices, that means an increased travel fare or pump price. On the other hand, if they work from home, this means more trips to top up the electric or gas meter.?

Money can cause a heap of stress, anxiety and worry for your staff - but you might be asking why you as an employer should do anything? With anxiety comes distraction, and with distraction can come lower performance, productivity and wellbeing for your staff. They might seek out better pay and opportunities elsewhere, hitting your pocket and your pool of talent. On the other hand, they might not be able to commit their full attention to your business due to their money worries. But what can you do to help??

Battle the Cost of Living: Top Tips?

1. Consider Financial Support?

Every business will be feeling the pinch in some way - from supply chain costs to the price of office utilities. But if your organisation has the financial power to help your employees, you might want to consider ways to provide financial support - a one off pay bonus or pay rise, an increase in remote working to alleviate commuting costs or an organised car pool to share journey costs.?

Not every business will be able to afford to provide financial help and your colleagues will understand that - but every little helps, and if you can afford, you should. It will demonstrate the value you hold for your staff and their families.?

2. Check In Regularly?

It’s important to check in with staff regularly - ask full, honest questions of them. Are they struggling? What are they struggling with? Create an approachable environment to allow them to vent their worries and seek out solutions where you can.?

Support for your employees is key to demonstrating how you value their wellbeing - check in regularly with them as we all continue to battle cost of living.?

3. Cultural Boosts?

When it comes to money worries, the mood can considerably drop in the office. Whilst you might quickly turn to a night out to boost your employee’s wellbeing, this can quickly turn into a further worry due to the cost of a restaurant meal, night out or an outfit.?

Use your HR team to think about alternative, cheaper mood boosts that can help your colleagues to alleviate some worries and boost wellbeing - from lunchtime walking clubs to in-office quizzes, they might be small gestures but they can go a long way in helping to provide a safe space to alleviate the worries the current economic climate can cause for your staff.?

David Bell is CEO at The HR Department