Rising Inflation Rate: How Can Employers Support Their Staff?

Top tips to follow

Canada’s inflation rate has reached its highest point in nearly 40 years, skyrocketing to 7.7%. Inflation is the measure of the increase in prices of goods and services, meaning the cost of living has gone up for everyone in the country. This impacts everything from employees’ salaries to the cost of raw goods for business owners. Employers across the country need to pay attention, now more than ever, to the stress their workforces are experiencing. Being asleep at the wheel during a time like this leads to unproductive workers, absenteeism, and job-hopping as workers seek higher wages to offset increasing prices. 

How can employers help their employees while reducing the risk of losing them in today’s competitive labor market? Here are a few critical tips to best support your staff during these stressful times. 

Offer Competitive Salary and Benefits 

One of the main reasons employees leave their jobs is due to a higher paying offer. Providing employees with a good compensation package makes them feel more valued and appreciated. It also works to keep staff motivated and not seek out alternative offers. Employers can also consider increasing salaries, offering bonuses, or implementing an EAP program. It cannot be overstated how important it is for employers to focus on compensation. It is the main driver in retaining top-performing employees and attracting new talent to their team. 

Invest in Other Benefits 

If a company is not able to offer raises or bonuses, there are other benefits that can be offered. In my experience, one of the most appreciated and easily accomplished is extra paid time off. Bonus PTO can come in many different forms, such as birthday PTO, half days on Friday, or summer hours so employees can enjoy the nice weather. Bonus PTO has been proven to have a positive impact on staff retention and overall work satisfaction. 

Remote and Hybrid Work 

After 2 years of the pandemic, many workers have become accustomed to remote or hybrid work. Offering these options can help combat the rising cost of living by reducing transportation and food costs, allowing employees to feel as if they have more control of their finances. Commuting is becoming costly and as gas prices continue to increase, workers are left with no cost-efficient ways of getting to work. By offering employees a hybrid or remote work option, they can save money and time while staying productive.  

Employee Assistance Programs (EAPs) 

When the costs of goods and services are on the rise, who wouldn’t appreciate a good discount? Creating an employee assistance program where staff can find deals and save on local restaurants, grocery stores, and gas stations, will allow you to provide a tangible benefit for your staff without increasing salaries. This is a simple and proven way to help staff save on everyday expenses while increasing engagement and productivity at work. They are more than just a discount tool, they also provide support for employee well-being.

Create a Healthy Work Environment 

While salary and benefits matter, a healthy work environment plays an even more significant role in employee satisfaction. Employers should stress the importance of a work-life balance, recognize good work, and provide opportunities for growth to their workers. Ensuring staff are not burnt out or unmotivated helps to not only create a healthy environment but also shows their employer cares about their overall well-being. Retaining a high-performing workforce starts with them being happy to work for you. This includes creating an environment they want to spend time in. This could mean different things to different businesses, but it includes everything from upskilling to rewarding and being invested in a worker’s success. 

A Certified Human Resources Professional (CHRP) with extensive HR consulting experience; Andrew Caldwell is an HR Advisory Manager at Peninsula Canada. In this role, Andrew is responsible for ensuring all Peninsula clients enjoy the same market-leading quality of advice that the group is renowned for. He also assists in training new advisors, developing best practices for client engagement, and specializes in resolving complex employee relations issues. Andrew has considerable knowledge of provincial employment standards legislation. He stays up to date with changes in labor law and briefs his team accordingly. Before joining Peninsula in 2018, Andrew spent seven years at Xerox Canada where he gained significant expertise in recruitment and training. Visit https://peninsulacanada.com/  Connect Andrew Caldwell