Inflation will bite hard in 2022 according to predictions, and therefore people will have to watch their pennies and tighten the purse strings to create some sense of financial wellbeing. However, help is at hand.
The Bank of England has forecast a gloomy outlook for 2022. The increasing rate of inflation of 2021 will continue to rise in 2022 and hit a peak of 7% by spring according to their predictions. They also expect the level to start to come down after that although some experts don't agree it will be as low as 2%.
The reason for the rise in inflation is down to slower supply and demand chains during the pandemic, the climate crisis that has caused flooding to some areas across the globe, and the massive hike in energy prices.
What will this mean to employees across the UK?
According to Employee Benefits, more than a third (37%) of UK businesses were worried about inflation and rising cost of supplies, but also that the average employee pay rise would be a third greater than 2021.
However, although the research points to a higher average pay rise, some employees may not receive the same pay rise when compared to others. For some lower-paid jobs, it might mean skimping and saving, avoiding buying any luxuries, or putting off any house maintenance, for example. For others, it could mean unsubscribing from streaming services, not buying that gym membership, and finding cheaper alternative travel into work.
The high rate of inflation has also forced some employees to find jobs with higher wages, and in some cases moving to a new region of the UK altogether where prices (e.g. mortgage) is lower. This has increased the competition for talent amongst businesses who want to attract and retain employees at this difficult time.
How does a total rewards and benefits platform help employers and employees during high inflation?
Put simply, employers need to offer their existing and perspective employees a comprehensive total rewards and benefits package that complements a decent wage, and this will ensure businesses keep the talent they have and attract and retain more talent. A total reward and benefits platform helps employers create an exceptional benefits and rewards experience while reducing benefits administration, automating processes, radically improving the communication of their employee value proposition and ensuring better data governance and management of benefits and rewards costs.
With a platform in place, employees will find that some employers will pay for their gym membership, offer health and wellbeing benefits, and be kept up to date through an app of the latest financial developments within the company. In times of financial instability, it could be said that every little helps, but in the case of offering your employees the right benefits and show them their total worth, you’ll be able to navigate through the tough times and create some stability.
Do you want to know how a total rewards and benefits platform can help navigate through financial instability? Find out more below.