With inflation on the rise, consumers will continue to feel its effects in the coming months of 2022. Employers must brace themselves and begin plan accordingly if they hope to hold onto their workers. Employees are being priced out of jobs due to high costs associated with consumer prices, which have been rising 8.6 percent each year. According to the U.S. Bureau of Labor Statistics, June has had the highest inflation rate since December 1981.
The average income increased by 5.2%, while inflation rose 8.6%.
Businesses are reevaluating and revising their pay budgets. As of 2022, higher pay for new hires was considered one of the top needs when looking to apply for a job. The labor market is tight, and companies are fighting over who can offer the highest salary. Record inflation means employees will see an average annual pay increase of 3-5% this year. More pay raises are on the way through next year.
While pay raises might not always match inflation, retain your employees by offering unique benefits.
Offer Better Healthcare at an Affordable Price
The cost of healthcare to your company is one expense that can negatively affect your business's overall budget. With health benefits coming in second only behind employee compensation, it is no surprise why holding down these costs would be so crucial for any modern business. A recent survey by Mercer shows that 63% of all CFOs ranked this as one of their top five concerns for keeping their organization on top. (source 2).
One way to help keep inflation at bay is by offering your employees better health benefits at a price that fits their needs and budget. Not only will this make them happy, but it will also help keep your business’ costs down. When employees aren’t offered the right coverage, claims costs often increase. With Enrollme, employees can pick a plan that meets their budget and needs from the largest range of options. All of this allows for accurate budgeting for both the employee and employer all year long. Even better, Enrollme clients have reduced overall premium costs by 1.55 annually for the past five years.
With our easy-to-use, cost-saving, and time saving platform your business can better keep up with inflation and employee compensation.
Offer Remote Work
With the rising cost of living and associated expenses, employees are seeking opportunities to save money. Give employees the option to work fully remote or hybrid, saving employees money on transportation. Your employees can also prepare food at home instead of eating out for lunch.
Student Loan Assistance
As employers seek to hire and keep workers during inflation, more companies are beginning to offer help with student debt repayments as a job benefit. Offering student loan contributions to employees can help your company become an employer of choice – attracting and retaining new talent and helping relieve the burden of college loans on your current workforce. (Source 3)
Wellness Programs and Reimbursements
Employees spend a majority of their time at work, which has encouraged companies to invest in corporate wellness programs. Programs can include various things, including employee assistance programs, telehealth programs with access to therapists, crisis counselors, and mental health assistance. Companies have also reimbursed their employees for accessing nutritionists, gym memberships, and more.
Help your employees during inflation by offering them a variety of unique benefits. For more information on cutting business costs, visit Enrollme to find a solution that benefits all.