The 2022 cost of living crisis in the UK has seen a record number of households face the most significant decline in income, with the Bank of England forecasting that inflation could hit up to 11% this autumn.
UK organisations could soon be faced with workforces that are unengaged, distracted and unhappy because of the state of their finances. This rise in inflation could show that nearly one in three workers has taken on more hours or extra shifts at work to help pay bills, and two-thirds admit that the cost of living crisis is causing them to feel stressed or overwhelmed.
The real living wage is voluntary and applies to workers aged over 18 years and is independently calculated?based on what people need to get by. Businesses that voluntarily opt into the real living wage scheme can help to ensure that their employees earn a wage that is enough to live on and meet their everyday needs. Some organisations are even offering their workers salary increases that are in line with or above inflation, helping to stabilise employees’ wages in real terms.
As the cost of living continues to rise, employers have a more important role to play than ever before in supporting their employees’ financial well-being. Financial literacy and education should be on the mind of every employer and form a foundational part of organisations’ reward and benefits packages.
According to a report by the CIPD, the professional body for HR in the UK, one in four employees say money worries affect their ability to do their job – and even those on the highest incomes are not immune.
Pensions are designed to provide money for employees’ retirement and are one of the most popular and widely available benefits. But since auto-enrolment was introduced and contributions became opt out, can pensions really be seen as an extra benefit that employers can take credit for?
Candidates often ask about pensions at interviews, but may not understand them well enough to appreciate the real benefits of what you’re providing. Consider changing your pension policy so that you match any overpayment an employee makes up to a certain amount, and provide education about how pensions are structured and the financial benefits (both short and long term) of making contributions.