Find new ways to support staff in the cost of living crisis, firms urged

FIRMS need to find ways of improving financial support for employees as the cost of living crisis continues, according to one firm.
With fears of a talent exodus as the rising cost of living and inflation continue to drive staff to higher-paid roles, pay company CloudPay warns firms need to find alternative means of improving the financial support available to staff.
The call comes as data from talent services company, Morgan McKinley revealed more than half (57%) of global employers are worried they will lose staff in the first half of 2023.
According to CloudPay’s own research – produced in conjunction with Industry Dive – the frequency of pay days is equally as important to staff in the current climate, with 60% of employees raising concerns around how they would pay for an emergency.
A further 70% of executives said responding to employees who want to be paid before payday was the greatest challenge facing their payroll teams.
Paul Bartlett, CEO of CloudPay said: “Rising interest rates, inflation, and fears of a recession have understandably driven financial worries to the forefront of employees’ minds while business leaders contemplate the impact it will have on staff attrition rates.
“The data from Morgan McKinley suggests firms could be facing a talent exodus at a time when skills shortages are already rife. However, company-wide pay rises aren’t feasible for all employers, particularly as economic uncertainty continues.”
He said firms need to be ‘more innovative’ with financial processes, and could see the benefits from a happier, more engaged workforce – including with things like Pay On-Deman schemes, where employees can claim wages they have earned before a designated ‘pay day’.
“By giving employees access to the salary they have already earned, when they want and need it, rather than waiting until a designated pay day – or resorting to loans or credit cards – employers can easily alleviate some of the challenges they’re facing,” he added.
“It might not be a salary increase, but it helps provide further stability for staff while also acting as both an attraction and retention mechanism.”

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