How CEOs can help staff through the cost of living crisis

Currently, both businesses and individuals are experiencing financial difficulties. Cost of living concerns are placing a huge burden on both businesses and consumers as fuel, energy, and commodity prices continue to soar at the fastest rates in thirty years.

CEOs and employers must offer their workforce whatever support they can, given the situation is only predicted to worsen as 2022 progresses. Indeed, businesses might have issues of their own, but employees are a precious resource and should be supported through these unprecedented times if your company is to retain individuals once the economic climate begins to stabilise.

How you act now might very well define you as a leader, so in this post we’ll explore ways in which you can come through the other side with your reputation and workforce intact.

Employees who are struggling financially at home are less likely to be focused and productive at work. Financial difficulties may result in mental health concerns, which may then lead to absences.

Businesses rely on dependable, hard-working employees to help them navigate uncertain times. Therefore, it is in the best interest of any company to put the time and effort into caring for its employees and assisting them whenever necessary should they be dealing with personal concerns. Both parties are set to gain from this.

Here are some practical ways you can assist employees who are having financial difficulties related to their energy bills, transportation expenses, debt, or other issues.

Make it be known that your door is always open

It can be difficult to discuss personal finances in public. Many people are reluctant to acknowledge they are having trouble because they don’t want to appear to be asking for assistance. For many, this is damaging to pride, and matters being aired in the workplace are often cause for embarrassment. Unless there are clear indications of a problem, it’s not something you feel that you can simply discuss with someone directly.

The best approach is to make it clear to all employees that you are always available if they do have anything bothering them. This ultimately comes down to your management style and the culture of your company. If you work hard to create an open, supportive culture, if you show willingness to listen and do what you can to assist people, you will earn a reputation as a sympathetic leader who can be relied on.

The best approach is to let every employee know that you are always available if they have any issues. In the end, your management approach and the corporate culture of the business will determine this. Being accessible means being visible to the team, having an open door policy and checking in every so often to make sure everyone is OK.

You will develop a reputation as a compassionate leader who can be trusted if you work hard to foster an open, encouraging culture, demonstrate openness to listen, and do what you can to help others.

Make clear of course that any matters discussed will always be in strict confidence, failure to make this known will lead individuals to only share with you what they are happy to share publicly. The key here, is to get to the root of the issue as quickly and as transparently as possible.

Be flexible about working arrangements

After all the inconvenience caused by the pandemic, the government has made a huge show of urging people to return to the office, no doubt hoping to win over the business community in the process. However, given the circumstances, that might not be the greatest option for your people. If this is the case, you shouldn’t make it policy for your company.

Listen to what your staff have to say. How much does it cost them to get to work? Is it worth putting them through extra financial hardship by requiring them to travel to the office if they can work productively from home? If a move back to the office causes resentment among your staff, it will be a costly move to make in the long run.

Be considerate of other issues as well, including childcare arrangements. Many working parents struggle to afford the hefty expense of childcare, nannies, and after-school activities. Flexibility in how, when, and where your employees work could save them a lot of money and will pay for itself in the form of increased loyalty and thankfulness.

Be proactive about organising car shares and other transport schemes

In the past, many employers have left it to staff to decide if they want to get together and car share to reduce the costs of the commute. They are more likely to gain traction, however, if management takes on the organising themselves. By leading it from the top, you make it more a formal part of the company culture. As well as having financial benefits, it is also something to include in your sustainability policies.

Aside from car shares, you could also get your business involved in the government-backed bike2work scheme, with grants for cycling equipment available to employees.

As well as the above, CEOs should ensure other day-to-day employee welfare duties are carried out like clockwork. Whilst your business is no doubt experiencing more duress than ever before, be sure that annual staff appraisals, commission reviews, employee benefit schemes and over-time opportunities aren’t missed off the agenda. It can be tempting to put-off any of these topics, in place of issues that may seem more mission-critical, but by keeping a keen interest in your employee’s welfare, you’ll not only help an individual going through hardship, but you’ll also buy loyalty into 2023 and beyond.