These are the employees that business leaders can’t ignore in the cost-of-living crisis
A steadily growing number of workers who were formerly ‘just about managing’, are discovering their financial viability now hangs by a slender thread. Many of them will be in your workforce.?So what’s your responsibility?
Effective leadership requires a close attention to the margins, whilst holding the bigger picture firmly in sight.?
As the UK faces the worst cost-of-living crisis in a generation, it’s more important than ever that?#responsibleleadership?holds the big picture in sight but also has a compassionate focus on the thousands of people who are drifting towards socioeconomic margins through no fault of their own.?
There is no single piece of legislation, no sole organisation or single leader who can tackle the cost-of-living crisis on their own. The change that’s needed requires a collaboration of??efforts, ingenuity, and commitment from across UK government, business and society.
The first step to making that commitment is identifying those in need.
According to?#SachaRomanovitch?advocacy organisation?#Fair4Finance, of the 17.5 million adults who are in financially vulnerable circumstances, here are?3 segments of society?we can’t afford to ignore:
Fair4Finance identify 3.9 million adults as part of the?‘squeezed and sliding’: people with less certainty around their finances and increasingly squeezed. This group are the workers who are just about managing their debts, but some are using savings or borrowing more to make ends meet.?
Then there’s the?‘forgotten families’:?3.8 million adults in families with very low income and low savings, with many living in poverty. The forgotten families have lower levels of debt – one explanation being that it’s because they have fewer options to access credit.?
The third group employers can’t afford to ignore are what Fair4Finance term the?‘credit crisis families’.?Around 3.5 million adults in families in the UK who are in a cycle of juggling and struggling with everyday bills and debts; finding as much credit as they can in all forms.
At?#ForwardInstitute?we’re running a 6-month programme to help?#responsible?#businessleaders?make practical changes to support the workforce and take positive action on the cost-of-living crisis. Our programme cuts across industries: just as no one leader will take us out of the crisis, no sector can work alone to improve the situation facing the 17.5m people we can’t afford to ignore. We’re bringing leaders together work to find solutions that work for all sectors.
The programme’s just begun – and while we continue to build solutions through sharing learning across industries at senior leadership, here’s a starting point for all leaders to take action.?
What you can do right now:??
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1.?????Create a space to listen??
For many, talking about money is a private matter, so it can be hard to admit they’re not managing. As a leader, what are you hearing? Which voices are you not hearing? And how can you help staff to tell you in confidence if they need to??
2.?????Take immediate action while you plan for the longer term?
In our first session we shared what employers are already doing to help ease the financial strain. From direct payments (one-off payments and pay rises), discounts and no-interest loans, through to flexible working to save on petrol costs, leaders were responding with a temporary boost to pay packets.
Others offered free financial advice and support for mental and physical health (including training for managers and introducing ‘financial first aiders’).?
For the longer term?
Our 6 month programme will tackle how to make systemic change. We’ll be sharing more about this in the weeks to come.?
If you’ve found this helpful share it widely with others who can help make a positive difference.?And share with us: what more do you think #ResponsibleLeaders should be doing?
Photo by?Emil Kalibradov?on?Unsplash
Chartered Health & Safety Consultant
2 年One must also remember the affects on peoples mental health