Includes Commentary
Inflation rose 8.5 percent year-over-year in March, the highest inflation rate since 1981, according to the U.S. Bureau of Labor Statistics. Employees are now looking to their employers for help as inflation challenges their lives, says Kathryn Mayer. She offers five ways employers might address inflation challenges.
Coupled with the current competitive labor market, employee inflation concern is something that organizations must really be thinking about and cautious about. It’s critically important employers address this.” – Tony Guadagni
Source: Human Resource Executive, May 5, 2022. Link. As always, the importance of communication can’t be understated. Employers need to stress the value of the benefits they provide to their employees.
Commentary: Gas prices are nearly 2.5 times higher today versus end of year 2020. Surcharges are being added to inventory replenishment orders as a line item or in higher unit costs. Operating costs will soon reflect rising interest rates.
To truly address inflation, I believe employers must be especially transparent about where their own costs are increasing. Sharing how inflation is affecting the business can ease some tensions with the current team.
From the five ways Mayer suggests addressing inflation, we offer this perspective:
- Bonuses – moneys paid on tangible improvements in business revenues, cost reductions or the combination of the two supports practice revenue growth
- Perks – Reminder! Whether provided by a supplier or in lieu of bonuses, remember the tax reporting consequences associated with providing gift cards or same as cash incentives can diminish perk value to employee
- Implementing virtual care services can offer individuals flexibility while avoiding some of the commuting costs
- Now is an excellent time to adjust pay scale logic for current employees before stretching to get a new employee to avoid disparity in pay for similar positions