The cost of living keeps increasing at record levels, and employees from almost all income brackets need financial help. What can employers do for their workforce to reduce the painful effects of inflation? In this article, we’ll look at some current data and explore three ways employers can offset inflation for their employees.
- Approximately 61.3% of Americans, 157 million people, are living paycheck to paycheck
- More than one-third of paycheck to paycheck consumers in the U.S. earn at least $250,000
- Over two-thirds of Americans are now anxious about their finances and worried about their financial future
What can employers do to help their employees?
- Identify solutions other than salary increases to alleviate the financial strain. A Glassdoor survey found that 80% of employees prefer additional benefits to pay increases. Therefore, a little creativity can reap financial benefits for employees, even if salary increases cannot be given across the board.
-Be flexible. Allow employees to work remotely, even if it’s 1-2 days a week. The savings on commuting costs will be substantial and appreciated.
-Expand your offerings. Offer merchant discount programs for items like electronics, hotels, amusement parks, home and auto insurance, childcare costs, and mobile phone service.
-Broaden coverage. Cover family members with health insurance or pay a larger percentage of employee health insurance costs.
- Talk to your employees. Addressing the elephant in the room is critical for an employer. Don’t brush off the current economic climate. This is a difficult time for your employees, and they want to know that their employer cares about them. Getting in touch with your team and discussing inflation can reveal some great insights into what they value most. By understanding their needs, you can create a total rewards package that meets their expectations.
- Implement a financial wellness program. The most impactful benefit employers can provide during inflation is a financial wellness program. As employees face increased financial stress month after month, equipping them with the tools to make informed decisions can greatly reduce their anxiety and help maximize their paycheck. Here are some key features to look for in a financial wellness program:
-User-friendly money management tools
-Expert financial coaching
-Tailored financial empowerment content
-Custom engagement strategies
-Unbiased & Independent – does not sell employees financial products
With inflationary financial stress impacting employees at new levels, it’s essential they have the support to manage their finances more effectively. BrightDime is an industry-leading financial wellness solution designed to alleviate employee stress that’s tailored to their specific financial situations. To learn more about BrightDime’s financial wellness platform view the short 2-minute demo
For more information contact BrightDime at email@example.com