Employment law specialist Laura Brown, from Howes Percival, shares her advice for businesses questioning how to support staff through this difficult financial climate.

Most employers have recognised the impact that the current cost-of-living crisis is having on staff wellbeing, productivity and engagement at work. This, together with recruitment challenges, have led to businesses considering the steps they could take to assist and retain staff during this difficult time.

Eastern Daily Press: Laura Brown is a director in the employment team at Howes PercivalLaura Brown is a director in the employment team at Howes Percival (Image: Howes Percival)

An obvious gesture is the offer of salary increases in line with or above inflation, or volunteering to pay the real Living Wage. It is understood that some employers have made payments of one-off bonuses, although some staff have rejected this money due to the impact on Universal Credit or tax credits. Advice should be taken when making additional payments to ensure these do not become contractual, and care taken to manage staff expectations of future payments.

As employers are also experiencing financial pressures, other types of assistance which might be more viable are being considered. For example, salary sacrifice schemes enable employees to exchange part of their salary for extra tax-free benefits, such as car parking, gift cards and childcare. Non-cash solutions such as enhanced benefits, discounts, offers and free basic food items are also popular.

It is important to ensure that financial literacy and education are a core part of the employer’s benefits package and wider wellbeing strategy. This could simply involve signposting employees to the Employee Assistance Programme (EAP), counselling services, or any interactive sessions relating to personal finance and budgeting.

Supporting flexible working arrangements can enable staff to work from home or in the office, depending on whether greater savings can be achieved through lower utility bills or no commute. Even by simply enabling expenses to be claimed weekly instead of monthly, or by utilising the right payroll software to ensure accurate and prompt payments, employers can help to alleviate stress.

Whilst there are a range of steps employers could take during this challenging period, it is apparent that those businesses who listen to their staff and respond compassionately are more likely to be rewarded by long term loyalty and will also attract talent going forward.

Laura Brown is due to hold a webinar on the ‘Cost of Living: What can employers do?’. For further details or to register your place, please contact laura.brown@howespercival.com