As HR, Am I Responsible for Cost Of Living in the Country, which Affects to my Employees?
Technical HR >> HR Solution
Trade Policy and Strategy Office (TPSO) under Ministry of Commerce published a monthly report of Household Expenses for May 2023. It shows an estimated monthly expense, 18,023 THB. While the daily minimum wage is ranging from 328 to 354 THB based on the announcement from Ministry of Labour on October 1st, 2022. It means minimum income per month is approximately 9,840 to 10,620 THB. A statistical report from Bank of Thailand shows an average monthly income by educational level per month (Q4/2022p), 15,416.29 THB.
By simple math, the expense is more than income, 2,606.71 THB per month or 16.90% of the average income!
If I take a look at the average monthly expense YoY, the expense was at 17,927 THB in May 2022 and 18,023 THB in May 2023, 0.53% different.
I can presume that majority of the company focuses either cost reduction or cost optimization in particular to labor cost. There would be some would like to increase their labour cost due to business reasons such as business expansion, restructure organization, new projects, and etc. Adding cost directly to the company may not be an option.
Difficulty in Private Life v.s. Delivery of High Performance v.s. Corruption in Organization
?There have been several studies show that stress from private life creates negative impact to job performance. It is a direct relationship between private life and work. That’s when the concept of work-life-balance or even work-life-integration was introduced 20 years ago. Being in debt, not-enough-money, call-everyone-to-borrow-money, etc., are the source of stress and this is where employees bring it to work every day. Furthermore, the depression and stress from private life can also result to corruption organization. This shows in many studies.
Once employees in the organization face difficulty in managing their lives because they do not have sufficient fund to survive daily, to support their family, and so on excluding high demand from work. A chance to deliver extraordinary or even standard performance is dim.
Is it a job for HR to take care of? Yes.
What HR should Do?
Consciously and strategically create solution.
Whether implementation involved company’s money, a good study to develop solution is required. If I do, this is how.
1.????Current state of issues
·?????Gather basic data of financial situation of employees (loan via tax deduction data, calls-to-follow up debt via HR, letter/email to follow up debt via HR), size value, number of transactions.
·?????Request of employees via HR or Welfare Committee regarding to increasing company benefits and welfare.
·?????Number of corruption cases, size and impact.
·?????Focus group discussion with those.
2.????Analysis of Issues and Impact to Business (financial/non-financial)
3.????Share primary study to management team, share necessity/needs to address the issues and sell ideas of providing solution to company and employees.
4.????Develop HR solution, share, involve and get consensus to implement.
HR Solution to Alleviate the Issue of Employee’s High Cost of Living
The solution is required support and collaboration among all stakeholders (company management team, employees, external vendors)
Internal Support by Company:
1.????Subsidize cost of meals in canteen (Free rice, sponsor the canteen workers with free sauces, gas, water, electricity, etc.) to bring down selling price and provide margin to the canteen workers.
2.????Free drinking water, free coffee.
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3.????Establish flee market by allowing employees bring their products to sell.
4.????Provide internal loan with low interest.
5.????Provide scholarship for children of employees.
6.????Provide skill training for employees to do the 2nd job.
7.????Provide 2nd part-time job within company.
8.????Provide knowledge on persona financial management.
External Support by Company:
1.????External loan via financial institution.
2.????Part-time job offer.
3.????Discount from supermarkets or malls.
Conclusion
There are many ways to support employees during their difficult time in life. We as a company and HR show our empathy and effort to help them. Not all we can resolve but some that we can do. There will be some of them who will pull themselves back and bring out a great performance of their own to the company. Beyond that they will appreciate the company and think of those supports even they leave the company one day.
Yes, it is our job as HR to do so.
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