While every employer may take a different approach to addressing inflation and its impact on their employees, the following are some common strategies that have emerged.
In response to inflation, many employers are altering what benefits they offer to help mitigate the effects employees are facing. For example, employers are offering options such as student loan repayment to help employees with budgeting and expenses at a time when prices are high and employees are looking for ways to cut costs.
Offering remote and hybrid work schedules is another way employers are coping with soaring inflation. Reducing the amount of time employees spend in the office helps cut back on expenses such as gas or other transportation expenses that come with commuting. It can also help decrease the cost of day-to-day things such as buying lunch or coffee at work.
Many employers are considering pay increases to offset record inflation rates. According to data released by Gartner, 63% of executives plan to make compensation adjustments in response to high inflation. Of course, it may not be feasible for many employers to match salary increases to the current rate of inflation. For some, the alternative would be implementing smaller increases that align with their respective budgets.
Health care costs are also rising with inflation. Savvy employers looking to attract and retain top talent are avoiding raising copayments, deductibles and other out-of-pocket costs for employees. This allows employees to save some extra money and allocate it to other essential needs.
Some employers are increasing education efforts surrounding retirement options. Retirement plans are often quick to be cut during times of financial difficulty, so employers who are promoting those benefits are likely to be viewed more favorably by current and future employees. In times of financial uncertainty, employees value employers who make an effort to ensure their stability. Encouraging conversation around retirement options is a great way prove to employees that an employer cares.
For more information about how to navigate benefits amid rising inflation, contact us.
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