As inflation continues to dominate the headlines, how can employers offer reassurance through their reward communications?
Companies know their employees are feeling the pinch as prices soar due to high inflation. Many employers are keen to help, but when paying higher salaries isn’t always an option, what else can be done to offer some relief?
Using this opportunity to share meaningful and timely communications is one way to offer reassurance. Be proactive in highlighting your current reward offering, in addition to providing valuable financial education to address their current concerns. Your employees will value the extra support and conversation around finances in what can feel like a stressful and lonely time.
An ‘inflation-busting’ narrative
There are thoughtful ways to reposition financial reward communications to meet employees where their minds are – with inflation busting narratives being a good example.
Why not highlight some of the specific benefits tied to pension saving? Pensions aren’t immune from the effects of inflation, but they remain one of the safest ways to invest long-term, because they usually grow faster than inflation when it’s low. Plus, employees receive tax relief on pension contributions at their usual rate, for example 20% for basic rate taxpayers.
In a similar vein, now may be a good time to raise the advantages of your share plan. Popping money into a savings account every month may seem like the safest option, but for those thinking of their long-term financial future, investing in stock has the potential to give greater returns – and pay dividends, too.
Knowledge is power
We know that a low and stable rate of inflation helps to create a healthy economy, but what is the impact when inflation spikes? With many of us bracing ourselves for the months ahead, now is the time to think about how you can support colleagues with their financial wellbeing. Not everyone has an economist’s grasp on what’s going on in the financial landscape, so bite-sized pieces of information may be your best approach.
Think of providing easy to digest, practical explainers on what inflation is, the impact it will have on day-to-day finances, and some tips and advice on how to manage it. How about providing a workshop or webinar (with expert speakers if feasible), to give your people the chance to up their knowledge and ask any burning questions?
If it becomes clear some of your people need more education, train your line managers to signpost their teams to helpful internal resources or external organisations.
A helping hand
One of the easiest ways to get people onboard with your message is to offer practical solutions, not just a list of do’s and don’ts. Get creative with your communications and show them that you’re listening.
Launch a campaign to remind colleagues of their free gym membership, shopping discounts or cashback schemes. If flexible or hybrid working is what your employees need most, then find ways to implement more flexibility to accommodate them and ultimately help them save money. And if they simply need advice or someone to talk to confidentially, then direct them to your EAP for financial counselling and further support.
Reach your people with engaging content that speaks to them and their needs. Need some direction? We’re here to help you create meaningful employee communications.