How employers can help their people weather the cost-of-living storm

Published: 5 Jun 2023

The Working Families Index Spotlight Report on the impact of the cost-of-living crisis on lower-income families is a sobering read. With four in ten parents on a lower income finding themselves in debt to pay for childcare, and lower income parents twice as likely to have their flexible working request rejected, families are struggling.

Whilst these experiences may sound extreme, families battling this kind of economic hardship exist in every organisation. Many employers, themselves facing higher costs, want to offer solutions but don’t know how or where to start. This guide, shaped by some of our progressive employer members, offers advice and practical actions employers can take to provide support to those who most need it. The cost-of-living crisis presents huge challenges, but also an opportunity for employers to think creatively and do things differently that may provide long-term benefits.

Deciding on a course of action

• Start a conversation

Finances are a sensitive topic, and it can be hard to be open about financial challenges. Create some focus time or structured discussion, for example a webinar or open meeting, which signals that the workplace is a supportive environment and provides a safe space to start a discussion about support available.

• Honesty is the best policy

Not every organisation is in a financial position to offer support such as one-off payments or pay rises in line with inflation. If it’s not economically viable, being honest with employees will help them understand and together you can start to think about alternative means of support.

• Presume nothing

When trying to offer support to employees, it’s best not to assume what people need, and instead ask questions. Every organisation and its people are unique so it’s best to find out what works for them, rather than make assumptions and spend time and resources on actions which may not make a positive difference. Insights from hiring managers or exit questionnaires can also help inform what would be helpful.

• Consider unintended consequences

When suggesting supportive actions, try to think through how it will work in practice and ask those who it will impact. For example, a one-off payment may actually make life more difficult for people in receipt of Universal Credit or those who have debt payments as their income will be falsely inflated for that month.

Flexible working

• Flex from the start

Don’t wait for the legislation to come into effect, make the right to request flexible working a day one right. Help your people respond to ever-evolving financial situations by not limiting the number of requests that can be made, so that they can use flexible working to help reduce travel or childcare costs.

• Start with a ‘yes’

Creating a culture where the default response to flexible working requests is positive can shift mindsets and foster a more solutions-based approach. A trial period will prove whether a flexible working arrangement is working and what might need adjusting.

• Work together

Flexibility works both ways. Approach finding a flexible working solution as a collaboration that can involve the staff member, manager and HR if necessary. Flexible working arrangements can be made on an ad hoc, short-term or permanent basis, to suit the needs of the individual as well as the organisation.

• Flexible hours

Working around childcare responsibilities can save families money on childcare costs. Consider whether your people could work at different times, especially around the holidays, so they can reduce costs.

• Flex your flexible working

Team members that have a hybrid working arrangement may still be paying unaffordable costs for travel. Consider reducing the obligation to be in the office for those who need it to save money on transport.

Consider all options

• Financial support

Apart from a wage increase, there are other financial measures that can support employees. A one-off payment can help with living costs without a having a long-term financial impact on the organisation. Alternatively, carry out a cost-of-living audit in each region to ensure wages meet living expenses, or bring forward pay reviews and move employees from low to medium pay grades faster than medium to high.

• Support childcare costs

Subsidies for ongoing childcare, holiday club provision, or loans to cover nursery deposits can all help your people manage the prohibitive cost of childcare. It’s also worth discussing with expectant parents the need to find a nursery that can offer the free childcare hours sooner rather than later, as competition for places can be fierce.

• Sound advice

Enabling access to professional financial advice can be a life-changer for your team members who are struggling with debt, increases in mortgage payments or financial planning. Set up regular sessions to empower your people to tackle their financial challenges.

• Make redundancy a last resort

A need to cut costs does not have to result in redundancy. Other solutions could be to offer the option of a career break or reduced hours for a fixed period. Consult with staff across your organisation and allow all views to be heard before decisions are made; they may have their own creative solutions.

• Buying power

As an employer it may be possible to offer your people subsidised Wi-Fi or meals in the canteen, or provide sanitary products to preserve period dignity. Think creatively about potential partnerships or industry discounts to save your staff money on goods and services.

Making it work

• Get the message out

Once support has been decided upon, make sure it’s visible and accessible to employees. Having it all in one place online and promoting it widely, from newsletters to the back of toilet doors, will help those who need it most be able to find it with minimal stress.

• Get managers on board

Manager buy-in is crucial for successful implementation of any measures or shift in culture. Offer training on how to initiate conversations around finances and flexible working, and help understanding through real life examples of how flex can work in practice.

• Listen, learn, adapt

Don’t be afraid to experiment and get things wrong. Accept that change is a learning process and all feedback good and bad will help tweak support and make it work better.

For more insights on how employers are helping support their staff, watch the webinar below.