Help employees fight inflation by beefing up benefits
The annual inflation rate for 2022 was 6.5 percent, and while it may be slowing, people continue to feel the effects every time they buy groceries, gas, and other essentials.
While raising salaries and handing out bonuses is an obvious employer response to sharp increases in the cost of living, the degree to which that is possible varies from company to company.
An organization that has reached the limit in terms of compensation, however, may still have more to offer struggling employees. Benefits are a tool that can be used to address worries around inflation and support workers through uncertain economic times.
Here are some benefit offerings to consider:
- Remote work. When possible, allow employees to work from home, or at least a hybrid schedule. Research from FlexJobs found that employees could save as much as $12,000 annually by working remotely, due to savings on commuting and other lifestyle costs.
- Emergency savings accounts. Nearly 68 percent of employees surveyed by Employee Benefit Research Institute (EBRI) said they would be “interested in an emergency savings fund” they could contribute to through payroll deduction, but less than 23 percent have this benefit offered by their employer.
- More training. In tough economic times, career development, coaching, and skills training can help employees move into higher paying roles within the company.
- Greater focus on employee mental health. Expand or encourage use of an employee assistance program. Employees may be stressed, but unable to spend money on mental health care for themselves or family members.
- Financial education. Some employees need help with money management skills, like budgeting and saving. Providing financial wellness classes and tools can be an affordable way for employees to help make the most of what they earn.
- Pet insurance. Shelters are full of pets given up by people who can no longer afford to care for them. With 67 percent of American homes having a pet, more companies are adding pet insurance to their existing suite of benefits. These employer-sponsored policies cover wellness exams, shots, chronic conditions, and acute illnesses and injuries. Some companies pay the premiums, while others offer discounted rates.
- Corporate phone plans. For larger employers that have negotiated a discounted rate for their business cell phone service, that discount can also be given to employees. Your company can choose to pay all or a portion of the employees’ monthly service, or they can simply take advantage of your corporate discount, which could add up to hundreds, if not thousands of dollars per year.
Encourage employees to use their benefits
If your company is launching new benefit programs in response to inflation, make sure your employees know about and understand how to use them, as well as all existing employer-sponsored benefits. Employees may save money simply by taking full advantage of their current benefits. A lunch-and-learn presentation or information provided on the company intranet can help remind employees of the ways your organization stands ready to help them with the rising cost of living.
Key to remember: Beefing up benefits and encouraging employees to use them is a way to help employees make ends meet during times of high inflation.