In the eye of the storm

The big squeeze and us.?

With the spring budget out this week, we gathered the bright and (sometimes) outspoken minds of our network for a timely discussion on April’s big squeeze.

The headlines are scary. In fact,?80% of people?are somewhat or very worried about what’s to come.??Anxiety is at its maximum level. Inflation is hitting a 30 year high at 6.2 % and wages are predicted to increase by only 3 %.

Businesses are struggling to absorb the rising cost of their supply chains. The impact of the cost of living crisis is resulting in employers undertaking unfathomable responsibilities for their workforces’ financial and mental wellbeing. We’re already seeing shifting consumer priorities and in many cases, desperation. As one Exchanger commented: ‘We're in the eye of the storm’.?

Here are the headlines from our conversation.

• This will affect everyone.?More people are clued up to what’s about to happen - we’re already seeing folks engaging in the conversation, “considering the impact on their pockets. Significant day to day habits are already changing and they are looking for value”.?

“Making sure people feel informed and in control has to be a business priority. When commodity prices get into a range where we can offer fixed rate tariffs then giving those choices to customers will be really important. When people feel out of control it heightens emotion and stress”. (Leader from the Energy Sector)

• Connecting people to support resources.?With a customer base that spans millions, catering to the diverse needs of consumers is very challenging. Often, vulnerable customers have reduced access to (or trust for) the digital platforms that can provide information on support and financial assistance available.?

Most households in bands A-D are eligible for a council tax rebate from April. Connecting your workforce to useful resources is part of the responsibility of an Employer that cares.?Here’s more information?on how to apply.

• How indispensable is your product/service??Rich?did research with Sky: “I was really surprised how families in households who were living right on the edge of their income would still preserve their relatively expensive subscriptions”. But it comes down to what’s valuable.?Midge?suggested, “it's cost-effective entertainment for the whole family, which might be a necessity when you can't afford to go out or go on holiday. It's an escape from real life that people need”.
• It’s not one size fits all.?“Small businesses have it tough.” Shareholders must agree to lower profit margins for a period of time, enabling investment to support their people. In larger businesses, “it’s not about firing people. The focus is on leaner and more efficient business models, so we hire less in the future.”?

A global health insurer feared that one-off unexpected purchases could tip their people into the red. To avoid doorstep loan sharks and extortionate interest rates, they’ve partnered with verified credit unions that offer affordable loans. These loans are assured by the employer. They also have early access to salary schemes.

• Positive pressure.?What might seem like a pandemic hangover, persists. Increasingly we’re seeing businesses and their leaders prioritise a shift to purpose; mobilising their power and influence to be forces for good. Commitments to?B Corp?and the?Real Cost of Living Wage?are on the rise.

“We have to do the right thing. Not least, to force the Government to do the right thing.”

There are real challenges around the role of the employer - in both the constantly changing business and people landscape - in a way that keeps people in jobs and hopefully tries to address some of those issues we saw in the pandemic, now we are at risk of a greater divide.

It’s now nearly two years since we gathered virtually at our first Exchange event, having just gone into Lockdown. With no idea what the future held, we prioritised community, persistent exploration and the collective desire to do the right thing.?

We triumphed then, weathering the storm a hell of a lot better than we thought we would. It might be an uphill climb but there is hope now, too.?

We encourage open discussions at our Exchange events, and always share our learnings. For that reason, we haven’t attributed any quotes to our Exchange Leaders, apart from contributions from our team.

We like people who challenge, debate and push our thinking forward. If you do this or like to hang out with people that do, please join us at our next event - Exchange: Great Expectations. We also write books -?register free here.

Jassi?leads Marketing at Innovation and Design Company?Fluxx + magneticNorth.?We help design better futures; working collaboratively with national and multinational companies, start-ups and disruptors, government and infrastructure.