Are pay rises the only option for employers wanting to support employees with the cost of living crisis?

The latest announcement from Office of National Statistics confirms inflation hit 10.1% in the 12 months to July, up from 9.4% in June, with the Bank of England predicting inflation could peak at more than 13% this year. The increase in living costs are rising faster than wages prompting many to call for pay increases. But are businesses in a position to offer such rises and, if not, what else could they do to support their employees during the months ahead? 

The rising energy costs, ongoing supply chain disruption and labour shortages mean that many employers are simply not in a position to permanently raise wages enough to counter the impact of the cost of living crisis on their employees. So what alternatives are employers offering? 

Many are turning to one off lump sum bonus payments as a short term support measure with the hope that prices will level out in the medium term. Others are looking at ways to help their employees cut costs, for instance offering hybrid and flexible working patterns to help reduce spending on childcare or negotiating discounts with travel companies to ease transport costs. Others are looking at wage flexibility, such as salary advances or hardship funds, as well as providing financial wellbeing tools and support to help employees manage their household spending and budgets. Additional benefits can also help. The backlog currently being experienced within the NHS means that benefits such as private medical insurance have an even greater value to many employees. 

Whatever support organisations are in a position to offer, it is essential that employees are made aware of what there is, whether internal or external to the organisation, and how they can access those resources, as the cost of living crisis will be with us for many months to come.