Rising Inflation: What Employers Can Do To Ease The Burden On Employees

The return to work after Covid-19 came with its own challenges to find good people, but now if?employers are not keeping up with rising expenses, they may also be at risk of losing top talent.?Costs for energy, housing, food, and transportation have all increased and impacted employees’ budgets in ways many employers have never seen.?

HRD (Human Resource Dimensions) has put together a list of ways that employers can help?employees with extra costs from inflation without giving higher than normal salary increases.?

? One-time inflation bonus: A one-time bonus can help offset some of the additional costs?that workers are likely to experience from the higher inflation rates without having to?commit to raising salaries.

? Reduce costs of benefits: Employers can cover more of the costs of health benefits. This?will allow employees to take more money home at their current pay and offer tax benefits?to employers.

? Can’t reduce the cost of benefits?: Consider a “Premium Holiday” where?employee contributions are skipped on their regular paycheck.

? Start an HSA (Health Savings Account) program: Both employers and employees can?contribute to a Health Savings Account that would allow employees to pay for many?healthcare related expenses with tax free money. Paying less tax on earnings helps?employees bring more money into the home.

? Farm Boxes Delivery: Have a box of fresh, locally-grown produce delivered to your?employees. It not only helps them with their food costs, but also supports the local?farmers in your community.

? Financial Counseling/Consulting for Employees: Many employers offer Employee?Assistance Plans that have financial planning & budgeting resources. It might be a good?time to remind your employees of this benefit.

? Gas or Grocery Gift Cards: Showing your employees that you are willing to help with the?increased costs they are juggling will not only help them financially but show that you?care about their wellbeing.

? Utility Reimbursement: Offer a reimbursement for a utility. Let employees decide which?bill they would like help with and have them submit the receipt for their bill to be reimbursed up to a certain amount.

? Four-day workweek: Where acceptable, a shorter workweek can help cut down on costs?from commuting and childcare. Since numerous studies have shown that shorter?workweeks can also improve productivity, this may be an even greater benefit to the?companies that choose to do it.

? Increase retirement contributions: Increasing the amount contributed to retirement?accounts, without requiring a match, or starting a contribution could make a positive?impact. An additional bonus to this option is that employer contributions to retirement?accounts may come with tax benefits. Many might think that this only helps down the?road, but if you know the company is contributing more right now, employees can reduce?their current contribution and put that money towards other expenses.

? Increase PTO: Increasing the amount of paid time off or starting to give paid time off will?not only help to retain talent but can also help improve the bottom line.

? Student debt assistance: Employers can choose to offer some form of student debt relief.?This is especially important as the pause on student loan payments may be ending soon.?Student loan assistance can potentially be given without increasing an employee’s taxable?income.

? Remote work: Where possible, sticking with or switching to a fully remote workplace can?help cut down on costs associated with commuting, childcare, and other work-related?expenses such as cell phone and internet.

? Carpool Stipend or Uber/Lyft Credits: Reward your employees who establish carpools to?reduce the individual cost of transportation to and from work. Offer Uber or Lyft credits?for employees to us instead of using their own vehicles to commute – even better offer?credit for larger ride share services and have them carpool with Uber or Lyft!

? Weekly Lunch provided by the employer: If they know they will not have to purchase?lunch or even make and bring their own lunch, it helps to save on the cost of food.

? Employee Discount Programs: These programs are administered by companies that have?partnered with top brands to provide member-only access to private discounts and?corporate rates on everything from pizza and the zoo to movie tickets, oil changes, car?rentals, and hotels. Everyone loves a good deal these days and these discounts offer great?savings for your employees.?

Supporting employees through financial challenges—like today’s soaring inflation—can help to?not only reduce stress, but to also drive productivity and better business outcomes. If you would?like more information on how HRD can help you implement some of these suggestions, reach out today! To sign up for future newsletters, register here .