With inflation on the rise, everyone is going to feel the pinch. But what can organisations do to cut costs and retain staff? Moira Grassick suggests alternatives to the traditional pay rise.
The population of Ireland is experiencing an arduous cost-of-living crisis as inflation rises to its highest level in 22 years.
Millions up and down the country are struggling to heat their homes, fill their cars, and put food on the table as prices surge, and many workers are finding their income stretched to an unprecedented degree.
It is likely that many business owners will be hearing the same question: "Can I have a pay rise?"
As a result, organisations are also finding it difficult to weather the inflationary storm, with many simply unable to offer additional payment to keep up with inflation.
So, when faced with the pay rise request, and the risk of losing valued workers, what can companies do to help employee pay packets stretch that little bit further – even when pay rises are out of the question?
Business owners are having to think outside the box when it comes to supporting staff through these challenging times. However, there are many ways to help employees reduce their outgoings.
Employee assistance programmes
Help your staff look after their mental health with the provision of an employee assistance programme (EAP) – particularly as financial issues can take their toll.
An EAP provides your staff and their families with access to 24/7 counselling and support on all of life's issues, all totally free to them.
Implement hybrid working
The pandemic thrust flexible and hybrid working into the spotlight, so consider implementing this where possible. Not only could it help your employees balance their home and work life more effectively, but it will also cut commuting costs. And businesses could benefit from too, with less energy expended in the workplace.
Remember though that working from home isn't for everyone – and there is the added issue of higher utility costs – so it's always best to give your staff the choice.
Taxsaver schemes
To further reduce commuting costs, consider giving staff the opportunity to avail of Taxsaver travel tickets which they can use to save tax and up to 52 percent when paying for a bus, train, or Luas pass.
Other ways to reduce travel costs include offering a cycle-to-work scheme, which can help cover the expense of a bike with added tax benefits. SMany companies are also opting to provide electric car schemes to the same effect.
Bonus vouchers
A bonus in the form of a voucher, which can be used to purchase goods or services, can be given tax-free to employees once a year up to the value of €500. This can help people to shoulder the expense of daily lunches or household food shop.
Discount services
Lastly, using discount services means that staff can enjoy discounts on days out, food and drink, tech, food shopping, and everything in between, making their pay stretch further.
Consider a pay rise
Of course, if it's feasible, a pay rise in line with the rate of inflation will go a long way in supporting your employees and the organisation in the long-term.
But with bills going up for everyone – and that goes for businesses too – it's not always possible. And that's where these alternative ideas come in.
Moira Grassick is Chief Operations Officer at Peninsula Ireland.