Six Tips On How Businesses Can Support Employees During the Cost-of-Living Crisis
November 2023

It’s safe to say that the cost-of-living crisis has had an impact on almost everyone, with higher prices on everything from the weekly food shop to petrol leaving people feeling the pinch. So, how does this link to well-being at work and employer responsibility?
In this challenging economic environment, the role of businesses in supporting employees has become increasingly important. Recognising and acknowledging the responsibility that employers have to implement support measures can help to mitigate the effects on employee well-being.
From team members to managers and all the way up to boards and directors, these hardships can lead to poor mental health, disengagement, and a lack of productivity, all of which have a negative impact on businesses as a whole. Here are our top tips on supporting employees during the cost-of-living crisis.
1 – Competitive wages
One of the most important ways employers can support employees during a cost-of-living crisis is by offering a fair, competitive, living wage. Adequate compensation is fundamental to supporting employees, providing financial stability, and ensuring they feel valued for the work they do. A failure to provide fair and competitive pay, especially during financially difficult times, is bound to lead to a lack of motivation, disengagement and inevitably a lack of retention as employees have no choice but to look for alternative roles. Employers should regularly review and adjust wages.
2 – Financial wellbeing support
Employers can support their employee’s financial well-being by offering support services/programmes and advice. This support can be in the form of access to financial advisers, seminars and workshops on money management and sharing resources/signposting to external financial support services such as organisations like Money Helper, which has budget planners, pension advice, benefits advice and much more.
3 – Flexible working options
Providing flexible working and allowing employees to create a good work/life balance can have a huge impact on supporting them through financial struggles. Facilitating flexible working hours, compressed work weeks and remote working can support employees financially as they can save money on expenses such as child care and commuting. By providing this flexibility, employers can empower their team to create a work/life balance that suits their financial needs and personal circumstances.
4 – Open conversations and transparency
It is vital that an open line of communication and transparent work culture is fostered within the organisation. Team members must feel able and willing to raise concerns and issues with management, addressing issues posed by the cost-of-living crisis, providing informative resources, and clearly signposting to team members to whom employees can disclose financial concerns. This will encourage open conversations and demonstrate dedication to supporting financial wellbeing within the team.
5 – Career progression support
Investing in the personal development of employees is a great way of supporting them. Upskilling and supporting career progression will help to increase earning potential and lead to better career prospects for employees. Employers should provide opportunities for certifications, training and education which can help their team members secure higher paid roles and earn promotions. Upskilling within the team is a fantastic way of showing dedication to employees, an investment in their future will create a sense of being valued, supported and lead to greater levels of trust and loyalty as well as improving wellbeing and building self-confidence.
6 – Employee Benefits Programme
A robust employee benefit package can go a long way in helping employees to cope with the cost-of-living crisis. Health insurance, retirement plan and other benefits can reduce the financial burden on employees and provide stability. By investing in these kinds of employee benefits, the organisation demonstrates their commitment to the long-term, financial security and overall financial wellbeing of its employees.
Employers can play a vital role in tackling the mental and financial impact of the cost-of-living crisis among the workforces. A collective effort, genuine thought and planning needs to be put in to ensure that everything that can be done to support team members during hard times, is done.
Fair and competitive wages, mental and financial support services, flexible working, employee benefits and other initiatives will help the workforce and by taking measures and maintaining open communication and transparency within businesses will allow employers to foster a supportive and resilient workforce that can weather financial hardships with greater ease.
We spoke with UHY Financial Planning and asked them for their advice, they told us:
“Financial stress is emotional tension that is specifically related to money, it can affect anyone and can be caused by not making enough money to meet basic needs such as paying rent, bills and buying groceries as well as not being able to live a desired lifestyle.
“While everyone worries about money sometimes, it becomes an issue when this becomes disruptive to everyday life. One of the best courses of action to cope with financial stress is to use a budget. Keeping and maintaining a budget is an effective way to monitor your finances and understand your spending habits. Taking some time to declutter, organise and schedule money coming in and out will provide some control over your financial situation.
“Absolutely everyone should at some point have a spreadsheet with incomings vs outgoings. This will reveal your net disposable income – how much money you have left over at the end of the month. Be detailed and include things like Netflix subscriptions and how much you spend on eating out.
“Completing an income/expenditure analysis can be so useful to take stock of what you actually spend your money on. This can be an eye opener and key action to really making a difference to begin to alleviate financial stress.”

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