The current economic climate in the UK is proving challenging for most of us and, though some experts suggest it is starting to abate and the situation will improve, the cost of living crisis is having a major impact on many of the UK’s lowest paid workers. It is particularly affecting young people who may be early in their careers, on low wages, working part-time while in education or training, or in unstable jobs.
As an employer, there are a number of ways you can support your young employees through this crisis. This benefits you as well as your workers; by taking steps to ease financial worries, you remove or reduce a significant source of stress. This helps your employees to be focused and productive at work. You will also gain a reputation as a youth friendly employer and an organisation that really cares about its employees.
Here are 6 ways you can support your young employees through the cost of living crisis.
1. Ensure your pay rates are fair, competitive, and equal
The most straightforward and effective way to support your employees through the cost of living crisis is simply to pay them more. Check your rates of pay to ensure that they are in line with the current market value for relevant roles and that they are competitive for your area and industry.
Ensuring equal pay and eliminating the pay gap is also particularly important in the current climate. Check that your employees are earning equal pay for equal work, and pay particular attention to any discrepancies along gender or racial lines, which is where these inequalities show up most starkly.
2. Consider remote or flexible working arrangements
In roles that allow for it, consider offering your employees the opportunity to work from home some or all of the time.
The total cost of coming to work in person can be significant. From commuting costs (such as petrol, train fare or bus fare) to parking, lunch, and childcare before and after school and in the holidays, these costs can add up quickly. The cost of commuting alone can add up to hundreds of pounds per week or thousands of pounds per year.
Working remotely eliminates or lowers many of these costs, helping your employees to make their pay go further.
3. Offer desirable benefits
Pay matters, but it is not the only factor in being a great employer. As well as offering competitive pay, you can help employees to make their money go further by offering flexible and desirable benefits as part of their employment packages.
There are hundreds of different benefit packages to choose from. Consider some of the following options to help your employees save money and alleviate the impact of the cost-of-living crisis:
- Subsidised or free food and drink at work (for example, subsidised staff canteens, free snacks in the break room, or a budget for meals when working late)
- Free or subsidised transportation or parking
- Season ticket loans to make commuting more affordable
- Gym membership
- Private medical insurance
- An Employee Assistance Programme (EAP) for free mental health support
- The option to sell back or “cash out” unused annual leave
- On-site childcare facilities (likely only viable for very large organisations with many employees)
- Discount partnerships with local businesses, entertainment providers, and more
- Free financial literacy workshops and financial advice services.
4. Create a staff hardship fund
An employee hardship fund can allow employees to access financial support quickly when they are in need. For example, your hardship fund could enable employees to pay off debts, cover property rental deposits, handle emergencies such as unexpected car or essential appliance breakdowns, and more.
You will need to work with your financial team, Human Resources, and senior leadership to establish the parameters of your hardship fund, the process for accessing it, and any limitations or requirements that will apply.
5. Help employees to save for the future
In the midst of a cost-of-living crisis, saving may be the last thing on many employees’ minds. However, saving is an important part of long-term financial planning and security. As an employer, you can help your young employees get into good savings habits early in their career.
A good pension scheme allows your employees to sacrifice a small portion of their salary into a pension pot, which is then matched by an employer contribution. You can also offer access to financial services such as premium savings accounts, shares in the company, and automated or AI-driven savings apps to help them to save money.
6. Give bonuses
During key moments of the year, like the holidays or after successful events for your organisation, you may be thinking about how to reward your employees for their hard work this year.
Cash is king here. If you possibly can, the best gift to give your employees is a financial bonus. This can help with immediate expenses, especially ones associated with the holidays, be put towards paying off debt, or simply give your employees a financial boost in this challenging economic climate.
If you cannot give cash bonuses, gift cards are another great option. Unless you know your employees well enough to be sure of their individual shopping preferences, gift cards to large retailers (such as Amazon) or generic gift cards such as One4All can offer your employees the most freedom on where to spend the money.
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Here at Youth Employment UK, our mission is to support young people into work and enable them to pursue fulfilling and rewarding careers. One of the ways we achieve this supporting organisations in becoming the best youth friendly employers they can be.
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