The cost-of-living crisis in the UK is still hitting both businesses and their employees hard. As operational costs rise and consumers tighten their belts, businesses face the dual challenge of maintaining profitability while ensuring their staff are adequately compensated.

The key is to empower your employees.  In the midst of the escalating cost-of-living crisis, new research reveals a stark reality: One example…87% of hospitality workers’ mental health is worsening because of financial concerns, exacerbating an already challenging situation. With wages stagnating and essential expenses on the rise, workers face mounting challenges, including housing and food insecurity, limiting their ability to save and thrive. According to recent studies, nearly 60% of workers struggle with financial stress, with over 40% citing it as a major concern affecting their overall wellbeing.

Amidst these challenges, one pioneering solution that has emerged is Earned Wage Access, which revolutionises the traditional pay cycle by providing instant access to earned wages, empowering employees to navigate their financial obligations with newfound flexibility and control.

By eliminating the need to wait for payday, new employee benefits providers enable workers to address immediate expenses without resorting to high-interest loans, thereby alleviating financial stress and promoting overall wellbeing.

Recent user surveys conducted by one industry provider underscore this impact, with 92% feeling more in control of their money thanks to Earned Wage Access and 88% being more likely to stay working at their current employer when this benefit is offered.

Another key solution is supporting workers with financial wellbeing benefits and education to reduce financial stress and help them better manage their finances.

These can take many forms such as personalised educational resources, financial coaching, money management tools, employee discounts, and flexible pay options, among other things.

PwC revealed that financially stressed employees are 5 times more likely to be distracted at work, highlighting the potential productivity gains for employers. By investing in these programs, hospitality companies can therefore enhance both employee wellbeing and operational resilience.

Another key focus are smart budgeting strategies which can significantly benefit companies during the cost-of-living crisis. By regularly monitoring expenses, implementing energy efficiency measures, optimising inventory management, adjusting staffing levels based on seasonal demand, and negotiating bulk purchasing agreements, companies can reduce operational costs and improve financial stability.

For employees, smart budgeting strategies are equally crucial. Creating a detailed monthly budget, setting aside an emergency fund, prioritising debt reduction, automating savings, and utilising employee discounts can help workers manage their finances more effectively. These practices reduce financial stress, increase disposable income, and provide a buffer against rising living costs, ultimately fostering a more engaged and productive workforce.

Where do you start? Well, you can talk to professionals such as myself who mitigate these employee risks…or if nothing else have a look at the Government website www.moneyhelper.org.uk where you can find simple and straightforward with tools to direct your employees.

About Un:Fade Employee Benefits Consulting

Specialists in seamless employee benefits, payroll and fintech solutions consulting. Helping you stand out as an EMPLOYER OF CHOICE by examining your benefits program to ensure cost-effectiveness, and alignment with employee and business goals