You can't turn on the news or log online recently without hearing about the rising cost of living. Prices for almost everything are going up but wages aren't necessarily following suit.
With the latest announcement that Rolls Royce has paid £2000 to more than 14,000 of its employees to help with the rising cost of living, you may be wondering what you can do to help your employees.
So, if giving a pay rise or bonus is not feasible, we've put together a few tips to help you help your employees get more cash in their pocket on payday.
How Employers Can Help Employees with the Rising Cost of Living
First up, ensure that your payroll system/department is up to date and all information you hold about employees (tax code, allowances etc) are correct to ensure that your employees are paid correctly and on time every month.
The stress of having to wait for a pay check or having to query payments every month is not good for employee's morale or their cash flow.
Additional, review your employees salaries. Are they still competitive and fair?
The recent rise in national insurance contributions means the average paypacket will fall by around £250 each year but your employees may be able to minimise these losses by paying for things before they are taxed.
Known as salary sacrifice schemes, this can be used for childcare, bike to work, additional pension contributions, company car scheme, and more.
This may seem counterintuitive but can make financial sense as it will lower the tax and national insurance payments. For some it may be worth it and especially in case of pension contributions, the longer term gains may be more important.
Are you able to offer retail discounts to your employees - either for your own products/services or in partnership with another firm? In the words of a well-known supermarket, "Every little helps".
Make your employees aware of any potential savings they can make. For example, are they aware they can get a tax rebate if they work from home?
Consider bringing in outside organisations that can present information on financial wellbeing to help your employees get the most out of their paypacket and see where they can make cost savings at home.
We hope these few tips have helped you discover how you can help your employees make their salary go further. As always, all employees should be advised to take individual advice before making any changes finance-wise.