Overcoming inflation in the return-to-office era
This edition of Capterra Tech Insider was curated and written by social media content lead Gabriele Gudo .
Many businesses are encouraging their employees to return to the office, but the rising cost of necessities like groceries, gasoline, and child care is dampening enthusiasm for the return to office (RTO) among workers. 60% of employees in our recent survey experienced increased personal financial costs to work in the last year, with 75% reporting that their wages have not kept pace with these rising expenses. In this edition of Capterra Tech Insider we dive into our research findings and share practical advice from the Principal HR analyst Brian Westfall on how businesses can mitigate these rising costs for their workforce.
75% of employees say their pay has not kept pace with all the rising costs to come to work.
Employers are facing resistance to RTO efforts
Despite companies' eagerness to promote collaboration and enhance company culture through in-office work, employees aren't as keen. Almost half of workers now work in an office or other workplace full-time, but only 14% say this is their preference. One of the major reasons being inflation which made the cost to go to work higher.?
Of the workers in our survey who have seen their costs to work rise, three in four say their wage or salary has not kept pace to compensate.
What are the strategies to mitigate costs for employees?
To address the cost-of-work crisis and encourage employees to return to the office, companies can consider the following strategies:
? Solution #1: Cover costs through employee stipends
Providing direct financial relief by covering or sharing costs such as parking, uniforms, toll roads, public transportation, gasoline, food, and child care.
? Solution #2: Reduce costs through flexible policies and on-site events
Improving the employer value proposition by adopting flexible dress codes, work schedules, and hosting on-site events.
? Solution #3: Help employees budget better through financial wellness programs
Offering financial wellness benefits to help employees manage their expenses and reduce financial stress.
? Solution #4: Offset costs through compensation adjustments
Adjusting compensation structures to incentivize on-site work while acknowledging the preferences of remote employees.
Leveraging HR Software for effective implementation
Looking to update your software stack? Utilizing HR software and automating tasks like managing stipends, reimbursements, and payroll effectively can streamline the implementation of the strategies above. Here are some examples how software can help:
??Flexible scheduling software will help you track and accommodate flexible work hours.
??Financial wellness support software can connect employees with personalized financial coaches and provide tools to help them better budget their paychecks.
??Compensation management software can help you dial in wage and salary numbers to incentivize on-site work without too much remote employee attrition.
Addressing the cost-of-work crisis is key for businesses aiming to bring employees back to the office successfully. By understanding employee preferences, implementing cost-mitigating solutions, and leveraging the right HR software, businesses can navigate this challenge effectively and foster a positive return-to-office experience for their workforce.
Thank you for reading! We'll be back in June with the next edition of Capterra Tech Insider.
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