Tag: Inflation

Can employers help by scrapping outdated payday cycles?

According to a recent survey over 2,000 British people, one in four people are skipping meals over their rising cost of living worries.

With inflation at record highs, and increasing financial pressure, especially on ‘lower income’ workers, employers are urged to scrap outdated payday cycles which exacerbate stress.

Steve Tonks, SVP EMEA at WorkForce Software commented: “48% of the UK population frequently feel monetary stress, with financial anxiety being a leading cause of poor mental health for three fifths (60%) of employees – with the rising cost of living soaring it is no surprise that the fear of food poverty is growing. With grocery price inflation reaching 5.9 per cent, the highest level since December 2011, it is inevitable that the most affected by these hikes will be low-wage, hourly workers – many of whom are frontline.”

“For these employees, lunar pay cycles can be a particular pressure point– as there can be up to eight weeks of elapsed time between when hours were worked and when payment is received. As a result, many workers are forced into high-interest payday loans to make it through the month- an issue that is only being exacerbated by rising inflation.”

“Earned Wage Access (EWA) is a simple yet highly effective way to improve the employee experience, while helping workers to better manage their finances both in the short and long term.”

“Employers have a responsibility to help break outdated pay cycles, now more than ever. But, EWA shouldn’t just be a ‘nice-to-have’ during times of economic upheaval. Instead, it should be viewed as a long-term CSR goal for organisations, supported by ongoing education and advice on money management.”

Share this article on social media

Employers’ confidence in the UK economy declines as inflation reaches record highs

New data from the Recruitment and Employment Confederation (REC) JobsOutlook survey advises of a decrease in employers’ confidence in the UK economy during the first quarter of 2022 as inflation numbers reach their highest levels in 30 years.

Although the measure of business confidence increased slightly in January, it soon fell back to the same levels as those in the final quarter of 2021.

But despite the decreasing confidence, most employers are still positive about their ability to hire. The survey found that UK businesses’ confidence in hiring was at net: +8 (1% lower than in the last quarter of 2021).

According to the survey, employers’ intentions to hire permanent workers have significantly increased by 9% over the past three months, despite the negative economic outlook. However, these intentions may be due to the current challenges in filling vacancies.

More findings from the survey include:

  • Medium-term hiring intentions rose by 7%
  • Quarter-on quarter, hiring intentions for temporary agency workers remained positive even though the numbers declined by 14% in the short term and 8% in the medium term.
  • In March, 18% of employers said that the increase in National Insurance contributions would reduce their ability to invest in their business.
  • 15% of employers said that the National Insurance contributions would discourage the creation of new roles.

Neil Carberry, Chief Executive of the REC, commented: “Businesses are seeing tax rates and uncapped energy costs rise, as well as pressure on salaries from staff who are seeing their own bills go up. So it is no surprise that firms are more concerned about the outlook. But British firms are resilient and investment in staff and growth remain on the agenda when employers think about their own business. We expect to see employers’ hiring plans decouple further from their economic outlook over the coming months as they face a tight labour market. Firms will need to find new, creative ways to attract candidates, as well as keep hold of the talented staff they have. Recruiters will play a vital part in helping them to do so.

“More employers are switching their hiring intentions towards permanent staff, as the urgent need for contingency staff to cover Covid absences decreases. But temporary workers remain vital to managing uncertain and fast-changing markets.”

All indications are that resilient British companies remain intent on growing despite a negative economic outlook.

Share this article on social media

75% of employees feel salaries should increase in line with inflation

A recent study by Insight Global, a staffing firm, has revealed that 66% of American workers are concerned they will need to look for a higher paying job in order to keep up with inflation.

The survey took place in March and included 1,005 US workers who are employed full time.

The rise of inflation is also prompting some workers to ask their bosses for flexibility to work from home to save on fuel costs. The survey found that 26% of workers who said they are seriously considering looking for a new job also plan to ask that they be allowed to work from home with 24% of those already working remotely planning to continue doing so most or all of the time until gas prices go down.

Overall, 75% of workers believe employers should increase pay during economic inflation.

Bert Bean, CEO at Insight Global commented: “Leaders need to get ahead of this curve before they see some of their greatest talent leave to explore other career opportunities. The simplest way to ensure your employees are content in their current roles is to ask them. Find out what they need — is it a raise, the ability to work from home or are they feeling disconnected?”

Other findings in the survey included:

  • 56% of American workers feel there are many job openings, but few job opportunities offering pay that can keep up with the rising cost of living.
  • 61% of workers who say they are seriously considering looking for a new job feel there are many job openings, but few job opportunities offering pay that can keep up with the rising cost of living.

Flexible working remains key in navigating the skills shortage crisis as employees will continue to look for roles that offer flexible and support during turbulent economic times.

Share this article on social media