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Read time : 3 min Added: 01/12/2022
The rising cost of living presents new challenge. Supporting your staff through tough economic times can help them feel valued and create a more resilient business.
For staff feeling the impact of rising prices, it can be hard to focus on day-to-day tasks. Economic news may be fuelling their anxiety. Inflation, for example, is running at a 40-year high, driving price rises across the board. For many, it’s the impact on essential items that’s most obvious. According to the Office for National Statistics, food inflation reached 14.6% in the year to September 2022, driven by the war in Ukraine and high input costs, such as feed or fertiliser.
Energy prices also remain high despite the cap on unit prices until April 2023, increasing the costs of transport, heating, and lighting.
To try to manage inflation, the Bank of England has already increased interest rates and hinted that further rate rises may be needed. In turn, mortgage and loan holders are facing increased costs of borrowing in addition to rising prices.
According to a recent survey from the Office for National Statistics, almost half of UK adults are finding it difficult to pay their energy bills, and a third are struggling to afford mortgage or rent payments.
The hidden cost of inflation is the toll it takes on individuals and it’s likely that many employees are finding the rising cost of living hard to manage.
Business owners who are seeing their own overheads increasing and feeling the pinch, can face a dilemma between the need to run an efficient business and the desire to support staff and retain talent.
It can be a particularly fine balance for businesses in sectors already facing staffing pressures or shortages, such as retail and hospitality, or education. Other sectors may be struggling to find staff with appropriate skills, or like real estate, managing demand pressures.
Given these staffing pressures, businesses that support staff wellbeing could benefit by creating a more satisfied and productive workforce and retaining the talent and skills they need.
Here are some of the ways you can support your staff and build a more resilient business.