With increased bills and expenses comes increased stress for your employee. It is important that financial support is available – get in touch today.
Cost of living – managing staff expectations
The cost of living crisis in the UK is a real and pressing issue. The cost of basic necessities like food and housing has risen significantly, while wages have remained stagnant.
The current economic climate has made recruiting and retaining staff more of a challenge as
many workers are searching for higher pay. Being upfront about salary can help attract
candidates who are a good fit for the position and the company, ensuring there are no
surprises down the road that may lead to time wasted on interviewing a candidate who has
different salary expectations. However, it can also deter strong candidates who may feel
they are not being offered a competitive salary. As an employer, you may more naturally
offer lower salaries to those who don’t ask for more. Ultimately, these disparities can
contribute to gender and racial pay gaps, as well as other forms of inequality in the
workplace. Existing employees are likely to also ask for higher pay, especially when it comes to their
annual review or the end of their probation period.
There are a few ways that managers can handle this.
- Be upfront and honest with employees. Explain to them the financial situation and
why you’re currently unable to offer a higher salary. In this situation, it may be
possible to set up a structured progression plan to clarify what the employee will
need to achieve to earn more money.
- Negotiate with the employee. See if there is something else that they would be willing
to trade for more money. You can offer many alternative benefits to financially
support your staff without offering higher salaries; for example, flexible working will
reduce commuting costs, company gym memberships reduce employees outgoings,
or providing company lunches will also reduce employees costs.
Loch Associates’ highly experienced HR Consultants can work with you to create an
environment that is mutually beneficial to both you and your employees. Furthermore, they
are on hand at all times to deal with any employee grievances to prevent these from
escalating further. Get in touch: firstname.lastname@example.org.