How to support employee wellbeing during the cost of living crisis 

The cost of living crisis is putting pressure on us all. Many employers have offered one-off payments to help employees cope with rising energy and food prices. Others are providing non-financial rewards to ease pressures, while more still are reviewing their employee wellbeing programmes to care for financial wellbeing too.

StepChange, the UK’s leading debt charity, are at the forefront of the cost of living crisis in the UK. We were delighted to be joined by Sian Evans, Director of People & Culture at StepChange for a topical webinar “Supporting employees during sustained uncertainty and challenge”.

Sian shared examples of the wellbeing support they are providing their employees, and the advice StepChange can offer other organisations.

Watch our live discussion with StepChange.

During the discussion, Sian was joined by People Insight’s survey consultants to answer questions from our audience about how to support employee wellbeing during a cost of living crisis. Below, we share highlights from the event Q&A.

Getting the tone right for financial wellbeing support

Question: How can we support employee financial wellbeing by signposting support without coming across as patronising? 

https://youtu.be/Leho3JlNTJ8

Sian said: “I think there is a fine balance. We’re finding that some employers are putting posters around their workplaces or providing access on intranet sites, so colleagues can access support away from work.”

“But it’s also recognising that actually all of us are experiencing some cost of living pressures, and it doesn’t really matter how much someone earns. We all live to our means. And frankly, mortgage payments are increasing, interest rates are increasing, the cost of food in comparison to overall expenditure is significantly increasing. So I think one of the things that I would suggest is to be very open about it yourself. And although you might not experience exactly the same issues as other colleagues, I think it is helpful if you can show some vulnerability yourself.”

“Having opportunities where colleagues can engage with financial wellbeing support quietly, without necessarily needing to talk to their manager about that help is really the way to go.”

Discussing expectations for salary increases during the cost of living crisis

Question: How do we set realistic expectations on employees regarding inflation versus salary increase?

https://youtu.be/3P6HZy2BrHM

This is a real challenge, and one faced by every organisation right now. Sian’s advice was: “I think the most important thing is to be really open and to share the financial position that the organisation is in, in a way that’s understandable. I know that many organisations will talk EBITDA, they’ll talk PBT, etc.”

“[At StepChange] we literally talk about the money we have available, the costs that we have, and we bring it to life. I think the important thing is to keep talking about the financial position of the organisation throughout the year and not just when it gets to pay review time.”

Thoughts from People Insight’s experts

Sian was joined for the Q&A by Oliver Davidson and Lisa Hughes from People Insight who also shared their thoughts on this question. Lisa said:

“After 20 years in HR, there is a piece to have lots more transparency in regards to finances of the organisation and simplify it, so it’s very inclusive. Empathetic leadership is critical when it comes to recognising how challenging this crisis is for everyone.”

I also think there’s a piece about the transparency of workforce planning. I know that’s challenging sometimes, but that’s linked very much to the organisational strategy, and how pay and reward is reviewed. When there’s a transparency around that, people are kept involved. So, while they may not be part of the decision making, they’re certainly communicated with. That starts to create a very open culture and gets this topic spoken about, rather than just hidden away.”

Oliver also added: “Also bring in the other benefits you offer from an Employee Value Proposition perspective so employees understand what else you’re doing to support people, and the benefits that they have.”

Low-cost ways to support employee wellbeing now

Question: We are really limited on spend across the business so I’m looking for no/low costs ways to support our employees. Any suggestions on how we can do this?

The cost of living crisis is piling pressures on everyone. So, remember that even small things can make a big difference to how employees feel. For example, just giving your time to employees for a confidential chat can make a huge difference.

During the webinar Sian shared a low-cost example of how StepChange support employee wellbeing after distressing client calls. The charity offer colleagues “me time” to help decompress after tough conversations. These breaks allow people breathing room, and a chance to reflect on how they feel. Similar wellbeing initiatives could include shortening internal meeting times to allow people to reset between meetings. In addition, flexibility during the working day helps employees carve out time for things that matter to them such as doing the school run or working out.

Also, if you use external suppliers for health insurance or similar policies, they often offer free add-on services such as an employee assistance helpline. Or they may be willing for their financial advisers to come in and host a “lunch and learn” session for your employees.

If possible, consider offering salary sacrifice schemes for costs like season tickets or childcare. These are all lower cost ways to support employee financial wellbeing at the moment.

Find more low-cost ideas here to support employee wellbeing for remote teams. 

Reassuring employees during a cost of living crisis

Question: What is the best way to assure your team that they have job security without over-promising in this uncertain climate?

In Sian’s words, “It’s probably best to avoid making bold claims about job security directly. Few organisations can genuinely offer absolute job security and statements to the contrary are likely to be seen as ‘empty promises’ that undermine credibility.”

“There are a couple of areas I would focus on though – things we should perhaps be focusing on more anyway, as they tend to be associated with higher levels of employee engagement and organisation performance.”

“First, is sharing a compelling vision and strategy, that inspires confidence in a positive future. People will see that a thriving organisation is likely to offer them security. Second is around continued investment in skills and people development. Again, it’s generally good for productivity, but also enhances people’s employability. So even if we can’t promise job security, upskilling people is reassuring as it helps improve their ‘career security’.”

StepChange’s vision for a debt-free society

Question: Is the vision of a debt-free society achievable when prices and taxes almost always increase faster than salaries?

As Sian shared during our webinar, StepChange have a vision to create a society that is free from problem debt. See the webinar replay from the link below to learn more about their work to achieve this.

“That’s a great question. [StepChange] differentiate between debt and problem debt and yes, we do believe that a society free from problem debt is possible. We lobby for change in public policy and private practice and support clients to balance their earnings and income. Sometimes clients can access additional money through access to benefits and with help can bring their expenses down to make their debts manageable within their earnings. We can support clients with this and can provide access to statutory breathing space to give clients time to breathe and work their financial plans. Where balancing earnings and expenditure just isn’t possible, we can sometimes enable access to insolvency solutions.”

How StepChange can support your employees’ financial health and wellbeing

StepChange partner with many organisations to help support colleagues with their financial health. They can run awareness sessions, provide access to financial advice via their digital tool StepChange Direct, and offer helpful resources that line managers can refer colleagues to.

https://youtu.be/iNqc3DoXuYA

Visit their website to find out more about StepChange and how they could support your employees’ financial wellbeing during the cost of living crisis.

Employee survey questions to measure financial wellbeing

Employee listening activities increased during the pandemic, as organisations saw the need to check in regularly with their people. During the cost of living crisis we’ll need a similar level of listening to understand the topics, like employee wellbeing, that are impacting the employee experience.

Financial wellbeing is of course critical at the moment. To help you measure financial wellness, and pinpoint where help is needed, People Insight’s experts have designed five new employee survey questions.

Find financial wellbeing survey questions, and more, in our 2023 trends report.

Or for help running a full employee wellbeing survey in 2023, get in touch here. We’d love to hear from you.