The British Chamber of Commerce estimates that around 57% of all businesses will increase their selling price of goods and services within the next 3 months.
This sharp increase in the cost of living is in addition to December’s 5.4% inflation rate – the highest recorded in 30 years. Furthermore, employees also face increased tax and national insurance contributions, as well as Ofgem’s pending move to raise the energy cap.
When the national living wage rises to £9.50 an hour in April, the majority of people will be left short-changed.
What Can You Do If You Can’t Afford To Give Your Employees A Pay Rise?
Giving your staff a company-wide pay rise to meet the rising cost of living may seem like a logical quick fix, but this is a transactional solution that’s not necessarily sustainable for the long term.
The CIPD believes the pandemic has brought our desire for flexible, more meaningful employment forward by 4 to 5 years. Employees have holistic needs, which are driven by job satisfaction rather than primarily just by money.
People are reskilling and upskilling to create more fulfilling positions, so the most desirable organisations are changing their job design to offer more supportive environments that promote employee wellbeing.
A high standard of living isn’t just the ability to buy fine things. It’s living a well-rounded, fulfilling life that provides opportunities for growth and balance.
Businesses proactively giving employees a reason to stay can avoid the anticipated pay rise by creating an enviable workplace. A people-first approach is good for your business because it retains the right talent, and simultaneously attracts quality customers who like to buy from companies that value their staff.
Today’s HR Is Data Driven
We need to introduce flexibility into the reward system, so we can better reflect what employees actually want based on digital tools and
human data, rather than on our long-standing assumptions.
Think about ways you can:
· Create a long-term, sustainable reward budget.
· Recruit, engage, and retain staff without cutting costs.
· Add value to the broader employee experience.
· Provide opportunities for growth and inspiration
· Develop a strong company culture.
· Stand by your staff to foster their sense of loyalty.
Albany HR Is Pleased To Welcome Jen Henderson MCIPD Into Our Growing Team.
Jen Henderson brings a solid background in the pharmaceutical industry, with core skills in recruiting for occupational health. She’s experienced with employee relations, policy coaching, staff inducement, and staff counselling at all levels of the organisation.
Jen is skilled at supporting businesses through mergers, polishing the details, and helping businesses to implement the right strategies that get the best possible outcome. Her HR expertise are ideally placed to assist businesses with strategic organisational design in situations where employees demand a better work experience.
The Right HR Support Helps You Succeed Through Your People, Without Relying On Giving Out A Pay Rise.
Albany HR is honest and directional, while always putting people at the heart of things. We guide you through your HR, and we recommend the optimal job design to engage and retain your people.
Jen Henderson MCIPD’s well-rounded contribution to the Albany HR team places us in the perfect position to support businesses across professional services.
Wendy Whyte MCIPD brings substantial experience in the legal, banking, and finance sectors, most notably from her time at Dentons, the world’s largest law firm.
Kathleen McAdams is a Fellow of the CIPD, an Accredited Mediator, an Executive and Leadership Coach and Mentor, a Member of the Association for Coaching, and a qualified Project Manager. Kathleen is a trusted advisor to organisations of all sizes across the UK, with global experience working across multiple sectors.
Albany HR is here to assist. Get in touch to see how we can help your business thrive through the rising cost of living. Email: firstname.lastname@example.org 0131 364 4186