The U.S. Bureau of Labor Statistics reports that inflation has increased by 9.1% year over year, creating the highest inflation rate since 1981. Significant price increases are impacting numerous necessary consumer goods. Essential items like groceries, gas, and living expenses are rapidly endangering even the most carefully planned budgets. As employees face growing financial difficulty and uncertainty, employers are taking action.
You understand the value of investing in and supporting your staff as an employer. Reducing turnover rates by retaining employees will benefit the bottom line. Now, more than ever, retaining top talent involves easing the impact of record-high inflation. Let’s discuss five actions you can take to boost retention and attract new talent.
#1: Reevaluate Employee Benefits
A shift in employee benefits can provide needed relief for those facing financial hardship. For example, benefits made to address significant financial concerns, like student debt, can help support financially struggling employees.
According to Forbes, the typical student loan borrower owes roughly $28,950. The average monthly payback is typically between $300-$400. Employers can ease the inflation-driven squeeze by offering student loan repayment benefits designed to assist with budgeting and expenses.
#2: Explore Remote Work Options
Employers can also help their staff reduce the impact of rapidly rising expenses by investing in remote and hybrid work schedules. Remote work options can be a win-win when carefully planned and structured.
Remote work reduces employee transportation costs, lessens day-to-day expenses on food, and often decreases stress. Additionally, while remote work options can demand an upfront investment by the employer, these alternatives often lower overhead costs and expenses long term.
#3: Increase Compensation
Employers across the country are implementing plans to increase compensation to battle record-high inflation. For small to mid-sized businesses, this can be tricky. If matching salaries to current inflation presents a financial challenge, you can create a smaller increase or devise a steady climb in compensation spaced over a reasonable period.
#4: Encourage Retirement Benefits
Employees may be quick to pause or stop investing in retirement benefits to fight the inflation-driven income squeeze. Now is the time to increase internal education about retirement. Companies that invest in and promote the proven stability of their retirement benefits will be more favorable to current and future employees. When reevaluating benefits, consider how to keep retirement affordable and attractive.
#5: Combat Rising Health Care Costs
Health care is perhaps one of the most discussed concerns in today’s financial climate. Savvy employers looking to attract and retain top
talent are working to avoid raising the prices passed on to employees. It’s more important than ever to maintain or deflate your current copayments, deductibles, and other out-of-pocket charges.
Small businesses often struggle disproportionately in the area of affordable health benefits. There are options for combating rising costs, such as self-funding medical benefits. But there are multiple options available to small, mid-sized, and big businesses. We can help you cut through the clutter to zero in on what will work best for your company. Contact us today to get started.