How to invest in your employees during the cost-of-living crisis

With the UK facing rising living costs and the evolving new workplace trend of “quiet quitting”, Nicki Robson (pictured), founder of Ashby-dela-Zouch-based HR firm Breedon Consulting, provides some steps businesses can take to invest in their employees in order to retain them.

Upskilling And Reskilling

Nearly a fifth of managers said the most prominent hiring challenge they face is a lack of technical skills and knowledge, according to research from ECI Partners, emphasising the growing concern over the UK’s skills gap.

Investing in upskilling and reskilling is an excellent way for businesses to develop and progress employees. During the pandemic, the level of preparation and training for managers was not always feasible – therefore, many had to adjust their leadership style when managing their teams remotely without any training or guidance.

Data from Virgin Media O2 Business and Censuswide found that 47% of employees would be happier in their roles if digital training was provided and 42% would be less likely to change jobs – highlighting that investing in upskilling and development is a valuable retention tool and imperative for businesses.

Outsourcing an external assessor to conduct a skills gap analysis can also help businesses analyse team-wide and company-wide skills gaps, assisting with interventions to bridge those gaps.

Incentives

While businesses face internal rising costs, it’s vital to support your staff wherever possible with incentives, bonuses and re-evaluating salaries through performance reviews, to help with the cost of living. It’s also time to be a bit more creative on how your budget is spent, considering taxefficient ways of “giving more for less”, such as vouchers or discount schemes. Around 5% of businesses with 250 or more employees offered a one-off cost-ofliving payment to their workers in the three months to August 2022, according to the Office for National Statistics' Business Insights report. Incentives like this can help employees with some breathing space between their rising bills.

WORK-LIFE BALANCE AND WELLBEING

Finding the balance between a healthy, positive workplace and lifestyle for employees has never been more critical for business owners. Open communication in the workplace is an excellent way to ensure employees feel supported and heard.

According to Glassdoor, nearly three-quarters of workers thought that annual leave was an effective way to reduce burnout, but only three in five employees used their full holiday entitlement.

Identifying employees’ needs and supporting them wherever possible by offering flexible or hybrid working, and providing training and development opportunities, can help to retain your workforce but also attract new candidates.