Difficult conversation re cost of living increases

With soaring energy costs and high inflation making headlines in 2022, employees’ finances have never been so tight, and this is having a direct impact on employee wellbeing.

It has been established that employees with money worries are 50% more likely to report performance-affecting signs of poor mental health.

As the cost of living continues to rise, more companies will look to address these challenges. But how should they speak to employees about what can be such a delicate and emotional topic?

Before a communication strategy is implemented, it is important to gain an insight into what your employees already know and get a feel for what they feel they might need.

There can be huge variations in levels of financial literacy among employees, so using the right techniques to engage with each group can go a long way in making sure you are communicating with impact.

Employers may wish to consider raising awareness of financial wellbeing among the wider team, providing individuals with access to specialists, showing how financial wellbeing aligns with the company’s core values, and signposting the support systems available to facilitate access.

Of course, there is no one-size-fits-all solution when it comes to communicating financial wellbeing, and it is important to acknowledge that every employee will be affected by the cost-of-living crisis differently.

Conversations about money can lead to deep-seated emotional responses and building a culture of trust is one of the best ways of normalising those conversations.

As best practice, the most effective way to communicate with employees is to keep it simple.

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