Most economists are predicting more challenging times ahead for 2023. For hourly workers, many living paycheck-to-paycheck, the high cost of living can send them into a never-ending cycle of debt. Research shows an employee who is financially stressed is less productive, more likely to miss work, and is less engaged while on the job. For those stressed-out employees who are customer-facing, this can be extremely detrimental to a business. And worst of all, they are likely to quit sooner, driving up recruiting costs.
Read more: Benefits that help employees fight inflation
Here are four ways you can help your team weather the storm of inflation in 2023:
Provide Financial Coaching:
Creating and sticking to a budget has never been more important with continued high inflation. It is critical to arm your staff with the tools to establish their own personal finance strategy to stay afloat during uncertain economic times. Financial coaching and other classes/learning resources can help team members create a personal savings goal or understand successful credit management.
Offer Meaningful Benefits:
The right benefits package can have a dramatic effect on employee retention. When employees feel valued and appreciated, they develop a sense of loyalty and dedication to their employer. Offering benefits that are focused on building their personal financial wellness speaks to an employer’s commitment to the employee. Among these critical benefits include 401k, tuition reimbursement, commuting stipend, and on-demand pay.
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Ensure Schedule Flexibility:
A big takeaway from the pandemic was understanding and respecting the priorities of our team members. From child care to education to a side hustle, working with the employee to create a schedule that allows them to come to work focused, engaged, and appreciated will go a long way in driving employee retention.
Develop A Rewards Program:
Nothing signals value and appreciation like a spot bonus. Whether it’s for picking up an extra shift or going beyond the call of duty, a spot bonus is an excellent motivator that can help drive employee engagement. Research shows that a successful rewards program has a positive impact on employee retention. Advances in HR technology enable employers to provide spot bonuses instantly.
Read more: Are we headed towards a recession? What employers should know about the recent interest rate hike
Over the last few years, from the global pandemic to record gas prices to high inflation, hourly workers have faced unprecedented challenges related to their finances. Now more than ever, employers can play a pivotal role in creating meaningful programs that help their employees stay out of debt and guide them on a path to financial wellness. When that happens, we all win.