There’s something that every business owner absolutely needs to recognize, and that’s the cost of living, which is getting pretty bad. It’s not just that, but corporate greed has gotten pretty rampant, too. Right now, a lot of businesses are trying to cut corners wherever they can. Now, it’s not that they’re struggling (yes, some businesses are), but the larger ones want to cut corners in the name of profits. You have shrinkflation, and some companies are raising prices for literally no reason while still laying off people.
People are struggling right now, and of course, that’s going to destroy the morale of your employees. So, with that all said, it’s just becoming more challenging, and as an employer, you really need to do what you can to help the problem instead of making it worse. Sure, one of the best ways to do this by far would be EE Employee benefits, something that honestly feels like a rarity nowadays. But when it comes to your employees, it’s better to do that, but also more. You all are a team, after all.
Your employees deserve to be happy, they deserve to do more than make ends meet, and they deserve to prosper, not be in the tight grip of greed. But as a business owner with a team, especially a small business, what can you do? Well, here’s everything you need to know!
How Is the High Cost of Living Impacting Employees?
The whole hustle culture isn’t just about being productive; a lot of people are “embracing” it because they have no choice. Sadly, having two jobs (and even more) is fairly common due to the rising cost of living. Transportation is expensive, basic household products like toilet paper are going up in price, groceries are too expensive, rent is bad, mortgage rates, healthcare is unbelievable, childcare is so bad that people are opting not to have kids, and the list goes on and on.
This financial pressure has pushed a lot of employees to quit their current jobs and look for new opportunities with higher salaries and better benefits. On top of that, more and more people feel the need to pick up side hustles or extra jobs just to cover their basic needs. There are plenty of ads showing up about picking up Uber Eats, DoorDash, or even Uber/Lyft for extra money. But here’s the thing: a lot of companies aren’t budgeting to pay their employees more, either.
In fact, it’s either paying them less or making them work jobs that are meant for three people but all into one person. Some employers are becoming strict on what employees can qualify for their benefits, and the list goes on and on. It’s sad, and quite frankly, it’s ridiculous too. This is creating a harsh domino effect that will definitely be seen more throughout the next few years unless things change.
Why You Should Help Your Employees
They are humans, too; they need to survive, and they rely on your job for survival; it’s honestly as simple as that. However, a lot of employers don’t think this way; they think of profits and the money they want from their business. Some, sadly, only see their employees as robots and nothing more. It’s sad, but again, why expect loyalty if you don’t give loyalty? So, with that said, here’s why you need to look into this.
Employee Wellbeing and Satisfaction
The cost of living—things like housing, healthcare, and everyday expenses—directly affects how financially comfortable employees feel. When living costs are high, financial stress can take a toll on their health and happiness. It’s as simple as that, so go ahead and put yourself in their shoes. So, with that all said, just by offering competitive pay and benefits that reflect the local cost of living, employers show they care. This helps employees feel secure and valued, leading to higher job satisfaction.
Increased Productivity
If you’re worried about making ends meet, it’s going to be hard to get anything done, right? Well financial worries can distract employees, reducing their productivity and focus. If they're constantly stressed about money, it’s hard to stay engaged at work. You have to keep in mind that it’s not always easy to separate personal life and professional life- especially if your professional life could fix these problems, but it’s literally not happening. So, with that said, just by ensuring salaries and benefits match living costs, employers can help ease these worries. A financially stable employee is more likely to be focused, motivated, and productive, which is great for business.
Support is the Best Way to Attract and Retain Talent
People are on the hunt for employers who offer benefits and care and actually pay a living wage! Besides, in a way, if you do all of these, you’re already at a competitive advantage, considering how greedy most businesses tend to be. In a competitive job market, the best talent has options. Just give this some thought for a moment; companies that offer pay and benefits that match the cost of living are more attractive to job seekers.
But it doesn’t end there either. When employees feel their financial needs are being met, they’re more likely to stay. High turnover is costly, both in terms of hiring expenses and lost productivity. It’s really a good idea to just go ahead and start addressing the cost of living to help create a stable, experienced, and loyal workforce.
Building a Strong Reputation
A company’s reputation depends a lot on how well it treats its employees. You must have heard about the Great Resignation, right? Why would someone deal with low wages in the name of “we’re family,” but they have their literal family that they actually need to support?
Companies known for understanding and supporting their employees' financial realities build strong employer brands. This not only helps in attracting top talent but also boosts the company’s image among customers, investors, and the broader community.
But overall, a positive employer brand can lead to increased business opportunities and market success. There are plenty of companies out there, such as Chobani, who are famous for showing how much they care about their employees. It’s not always about how big and famous a company is; usually, the most supportive ones are the ones that truly matter the most.
A Great Way to Support Diversity and Inclusiveness
While yes, it’s true that everyone is suffering, there are some who are suffering more than others, and they definitely deserve some attention. High living costs can be a bigger burden on underrepresented groups, making it harder for them to succeed. A lot of them are already struggling to get jobs and proper education (far more common than you’d think, even nowadays).
But it sadly doesn’t end there either. So, just think of it this way: by offering fair compensation and support, employers can create a more diverse and inclusive workplace. This brings a variety of perspectives and ideas, driving innovation and creativity within the company.
You’re Supporting the Community
If you live in a smaller community, then this is definitely going to show. But how exactly? Companies are an integral part of their local communities. When employers address the cost of living, they contribute to the overall economic health of their region.
Employees with sufficient income spend more locally, supporting other businesses and services. Basically, there’s this domino effect, so one business is helping another, which is then helping another. This positive community impact is reflected well in the company and can lead to stronger community relations and support.
What are Some of the Best Ways to Help Your Employees?
So, what type of benefits could potentially be helpful when it comes to supporting employees during this high cost of living crisis?
Commuting and Transportation Benefits
You really need to keep in mind that transportation costs can add up quickly, but employers can help ease this burden. For the most part, people travel to get to work anyway. That’s the main reason why people are commuting in the first place. Offering public transit subsidies that cover part or all of the public transportation costs can be very effective; in fact, there are some companies in certain countries, such as the Netherlands, that are pretty well known for this. Overall, this is something you should definitely keep in mind.
Flexible Working Arrangements
So many employers see remote work as lazy, but it’s the furthest thing from it. In fact, for a lot of families, this saves a lot of money. Work-life balance can significantly impact living costs, and flexible working arrangements can make a big difference. There’s no stress for childcare or the cost of commuting if this is all done from home.
Financial Wellness Programs
This is a newer program, but it has been getting some attention. So, what financial planning services are focused on giving employees access to financial advisors for personalized advice? For example, savings programs that match contributions or special savings accounts with favorable terms can encourage better financial habits.
However, you could also look into budgeting workshops that provide education on budgeting, investing, and other beneficial financial topics. These are a couple of examples, so it’s up to you and what you can afford.
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