Management Tips to Assist Workers Amidst Cost of Living Crisis

Even if you’re not keeping tabs on the latest prices of goods and services, you probably feel that the costs of basic needs, from groceries to housing, are not the same as they used to be. With this, many people are adjusting their spending to make ends meet.  Similarly, businesses worldwide are reorganizing their budget and cutting costs to thrive in today's uncertain economic condition.

If you are a business owner or manager trying to cut costs in your business but are worried about your employees, you are not alone. In this post, we’ll get into detail on why the cost of living is increasing and management tips to assist your workers amidst the rising prices of goods and services. 

Why Is the Cost of Living Increasing?

There are several reasons for the rising cost of living, including energy and petrol price hikes, goods shortages, and changes in government and trading rules. However, the primary factor is inflation. In its pared-down definition, inflation is an economic concept that occurs when the general price level of goods and services increases. 

Based on an estimate by Statista, global inflation is believed to have reached 6.9% in 2023. While this is lower compared to last year's inflation rate of 8.7%, this rate is still considered high. Fundamentally, 5% is considered high inflation. On a lighter note, the inflation rate is expected to decrease further in the coming years, with inflation reaching a projected rate of 3.8% by 2028. 

Management Tips to Assist Workers Amidst Cost of Living Crisis

Despite the Great Resignation ending and the inflation rate going down in the coming years, the corporate world is still grappling with the current challenges brought about by the rising cost of living. One challenge that is to be addressed is managing employees while dealing with budget cuts. If you relate to this, read on as we share with you tips to manage employees and assist them in the current cost of living crisis without breaking the bank. 

1. Develop a Culture of Openness

Sharing details about a company’s financial health is certainly not the easiest, but it is necessary, especially in the current global economic climate. In case your company gets into unstable situations due to rising costs and has to delay usual bonuses or annual salary increases, it’s always best practice to discuss the matter with employees as early as possible. By doing so, you can work with your team in strategizing on how to mitigate the effects of delays and support employee-financial being. 

When you are honest with your employees and collaborate with them to address issues related to finances, you can improve workplace communication, which can positively affect productivity. According to Zippia, 70% of the workforce can become more productive with better communication. Being open with your employees also reflects your commitment to your employee’s welfare, which can help develop and maintain employee morale and trust. 

2. Set Goals

Financial hardships should not hinder you from setting and working towards meaningful goals for your organization. Goals not only contribute to the success of your business but can also help motivate employees, increase their optimism, and foster a supportive environment. Working towards a goal can also ease mental stress and encourage better performance of employees.

When setting new goals, it is essential to ensure that your objectives are measurable and actionable. It is also vital to ensure that goals are attainable in the current economic condition. If you have existing business goals to achieve but are not relevant in the current economy anymore, it may be time for you to reconsider and adjust them accordingly. However, be careful with adjusting goals as it can suggest a lack of effectiveness or planning. Do note to only adjust goals when necessary.  

3. Offer Professional Development Opportunities

Unlike before, today’s workers are more concerned about professional development opportunities than ever. Statistics show that the majority of adults, 61% to be precise, in the United States seek career development opportunities when considering job offers. Besides this, professional development opportunities can positively impact your company’s retention rate and improve employee communication. 

Offering professional development opportunities are not just beneficial for your employees but also for the entire organization. When employees are given a chance to learn and apply new knowledge and skills, they can perform better and complete more complex tasks. Investing in your employees despite the financial difficulties also sends a strong statement about your appreciation and recognition of their value in your company. This can foster better relationships with employees and improve engagement levels, leading to better financial results. 

4. Enrich Physical, Mental, and Emotional Well-Being

As prices continue to increase, employees’ physical, mental, and emotional health are also affected as much as their financial welfare. As an employer, manager, or HR professional, it’s essential to recognize this problem and avoid overlooking employees’ overall well-being. 

Some of the ways to enrich the well-being of your employees are by offering employee benefits programs, conducting wellness and physical fitness events, and hosting virtual learning opportunities. You may also offer rewards and incentives and arrange get-togethers and team-building activities to create a sense of belonging. These activities can also boost mental and emotional health and ultimately improve work culture.

5. Enhance Employees’ Financial Literacy

One of the best ways you can assist your employees during the ongoing cost of living crisis is by enhancing their financial literacy through courses or programs. Financial literacy is the understanding and effective utilization of financial skills in financial management, budgeting, and investing. 

When workers have financial literacy, they become more confident in managing their financial situation and making informed decisions. This, in turn, can help reduce their financial stress and improve their overall financial well-being. Providing financial literacy training can also show your commitment to your employees' financial health, which can help improve employee loyalty and retention. 

According to research, employees who have been provided with financial education and tools are more likely to increase their savings. They also tend to feel confident about financial planning and less stressed by their debts. Additionally, they are more loyal to their employers. 

6. Make Sure that Employees Are Always Paid on Time

In the current economic climate, it goes without saying that late payments can cause unnecessary debts and stress, as well as financial insecurity. To avoid this, it is vital to always ensure that employees are paid on time. This can lessen the financial stress of workers, enabling them to focus more on their jobs. Just because this is obvious, doesn't mean it should be left out.

In addition to affecting employees’ well-being, delayed payrolls may also affect the company's reputation. Even more concerning, the company may be subject to legal issues in the long run. 

Boost Workflow Efficiency and Save Costs With StaffConnect

With costs rising across many areas of life, having software that can help you in every area of your business, from staff management to task management, is certainly beneficial. If you agree with this, StaffConnect could be an app for you. 

StaffConnect is a business management software that helps with managing processes and employees. It is engineered to automate repetitive tasks and streamline processes to save time, effort, and—most importantly—cost. With StaffConnect, you can boost workflow efficiency, reducing labor costs and expenses due to longer, inefficient processes. Additionally, it has a centralized database and other advanced functional tools, allowing you to reduce IT costs. It is also easily accessible on many devices, which enables you to manage your staff remotely and enhance overall productivity. 

If you are still not convinced that StaffConnect is an all-in-one management app, feel free to book a demo here and test our platform for free.