How to help your staff with cost of living hikes

Australian working families are experiencing the steepest cost of living increase in more than two decades. Rising mortgage costs – together with soaring fuel, electricity and grocery prices – have meant financial pressures at home are affecting people’s performance at work, writes Phil Parisis, General Manager of My Business.

As a small business owner, you want the best out of your staff. But helping alleviate workers’ cost of living pressures can feel like a big task, especially if the business is also struggling.

A recent survey by Australian recruiter Robert Hall found 90 per cent of employers have taken direct action to support their employees with the rising cost of living.

The survey also found 53 per cent of businesses have provided staff with a permanent pay rise, 57 per cent have extended remote work options to reduce travel costs, 44 per cent have allowed workers to sell annual leave days and 44 per cent are subsidising employees’ meals at work.

But often these options seem only achievable for the big end of town. How can small business owners help their staff alleviate the cost of living without putting themselves in financial stress?

By thinking outside the box, you’ll find there are actually plenty of low-cost options you can put in place to help your staff.

Restructure hours

Consider an early finish on a Friday or allowing your staff to work more days from home to help them save money on transport or food costs.

Free food

Many businesses offer free breakfast to help staff, or a pizza lunch once a week. Even free fruit or muesli bars in the kitchen is a help.

Cash in annual leave

Annual leave can only be cashed out when a registered agreement allows it, and rules apply. Employees need to have at least four weeks annual leave left over and the payment has to be the same as what they would have been paid if they took the leave. However, it can also be something that benefits your business as it reduces the amount of annual leave staff are accruing.

Health benefits

Subsidised gym memberships or free flu jabs are a great incentive for staff that often lead to greater productivity in a workplace.

Mini bonuses

Times are tough financially for small businesses too, and large pay rises for staff may be impossible. Consider ‘mini bonuses’ in the form of vouchers or cash payments. A simple $100 for the employee of the week could go a long way to helping somebody out with their groceries and motivate the entire workforce.

Whilst some of these options may seem radical, business owners are becoming more aware that personal stress directly impacts an employee’s performance at work. We’re still in a tight labour market and staff retention is key. Money and benefits are a major reason people leave their jobs – don’t let it be why you lose good people.

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