How to Support Your Employees During Soaring Inflation (coming soon!)

Economic downturn has its place in the heart of employees. Key signs of recession that grace the desks and screens of workers first are layoff announcements from other companies, increasing gas prices, and denouncements of inflationary practices. According to payroll system ADP, employees feel inflation most readily when everyday goods—groceries, coffee, gasoline—are priced outside the threshold of expectation. An obvious answer to hardship affecting employees is to pay them more, but that’s not often on the table without performance assessments, annual budget changes, and addressing a board of directors. If employees feel that their pay is no longer covering their cost of living, they’re likely to start shopping; job shopping, that is. 

First Off: What the H#!?k Is Going On?

Experts at Mckinsey have examined the nuances and complexities of inflation. According to their report “How inflation is flipping the economic script, in seven charts”, the United States lands in the middle amongst all countries experiencing inflation with a 7% rise. Banks are raising their interest rates, damping out consumer spending. Ideally, this will lower prices in the long run. The catch-22 is that with strained material prices and the impending food crisis, reflexive action to counteract inflation only influe

nces a portion of the market. Workers are noticing increased prices and interest rates, but the scariest part of inflation bares its teeth in the office: Many wages that were once drastically increased to counter a laborer’s market are flatlining, being revoked, or worse, cut entirely (i.e., layoffs).

How Can Stable Companies Show Support for Workers (Without Breaking the Bank)?

With tight budgets and an unpredictable market, what you can do for employees is likely daunting. Fortunately, IsoTalent has done some research around what employees see as supportive and helpful. When introducing these ideas it’s important first and foremost to make it clear to staff that changes are in response to inflation. This sets the expectation that changes are, above all else, to support employee wellbeing. Clarifying that changes are not a reflection of performance creates an even playing field amongst employees and sends the message that everyone is in it together. When HR and Execs are the first to raise concerns about employee well-being, it encourages a trusting and healthy work environment. Here are a few methods we’ve identified that will show your employees that you’re sensitive to their needs without breaking the bank. Coming soon!