How bosses should be helping their staff financially amid increased living costs

Aussie workers want their bosses to help ease their financial woes. Find out what help you can get from your boss – other than a pay rise.

Aussie workers believe bosses have a responsibility to help ease their financial woes.

As the cost-of-living crunch continues, almost two-thirds of workers say employers could do more to offset inflationary pressures, new research finds.

Experts agree, urging organisations to “look after” their staff.

“Is (the financial wellbeing of workers) the responsibility of bosses? Probably, from a wages perspective, it is,” says financial adviser Helen Baker, founder of On Your Own Two Feet.

“Some organisations maybe haven’t been increasing wages and it (real wages) has gone backwards against costs of living and inflationary pressures.

“If you haven’t had a pay rise for a while, you are very justified in having a chat to your boss (to request a salary increase).”

Employers should look after their staff amid the cost-of-living crisis, experts say.

One-way street

More than half of Australian workers have not seen any improvement in their financial wellbeing for the past two years, reveals the research, from employee engagement platform Reward Gateway.

Similar numbers are concerned with their salary and financial benefits, while 48 per cent say financial wellbeing should be the number one priority of employers this year.

Baker says discontent among workers is justified – particularly given the profits reported by many large corporates and the significant payouts made to some outgoing chief executives.

“It just feels like (employers) are being greedy and they have been greedy for a long time and they’re taking advantage (of workers),” she says. “You have to look after your staff. If they’re feeling financially vulnerable, chances are they’re going to become less efficient because they’re going to be stressed about money or, worse, they are going to leave for a better paying job.”

But rather than cite increased living costs as the reason for a pay rise, Baker recommends workers argue their case based on current staff shortages and demand for talent.

“Saying I need a pay rise (to cover) the costs of living will be hard because everyone is doing it and employers will think you are just having a whinge,” she says. “If you’re campaigning for more pay … I would say (to bosses that) the market has changed. Most people are looking for workers now and they’re paying a lot more in salaries to get those workers.”

Where organisations resist salary increases, Baker suggests employees request non-monetary forms of assistance. This could include free work lunches, petrol vouchers and even more flexible work hours that will enable them to take on a casual job to boost their income.

“When people actually add up how much the lunches and those bits and pieces are, it does add up to be quite significant (savings),” she says.

Marguerite Hancock says her work providing free access to a workplace salad and sandwich bar is saving her about $15 a day.

‘Best thing’

Marguerite Hancock estimates non-financial work perks save her almost $200 a week – money that is then freed up for other expenses.

The consultant with Brisbane-based Pure Source Recruitment has free access to a workplace salad and sandwich bar, saving her about $15 a day on paid lunches, and also has use of the company carpark, eliminating at least $60 a week on parking costs.

“The salad bar is the best thing that’s happened since forever,” Hancock says. “All of it (the non-monetary work benefits) make a really big difference and helps me to be able to do (afford) other little things that I wouldn’t otherwise be able to do.”

Hancock says her employer has been proactive in helping workers to meet rising living costs and is now investigating a shift to a four-day work week whereby staff retain their full pay.

“The money I’m saving is huge – it’s about $800 a month (saved) on parking and lunches, not to mention the time I save on shopping and making my lunch,” she says. “It’s just a really thoughtful thing to do and we (staff) are all pretty appreciative.”

Feeling the pressure

Soaring costs of living have left workers at their wit’s end and they are desperate for employers to help ease their financial worries, Reward Gateway APAC managing director Kylie Green says.

“Employees are very much feeling the pressure,” Green says. “They’re making lifestyle choices and having to prioritise the rent, their bills and everything else and they’re turning to employers to help support them.”

She says non-monetary incentives are increasingly being offered to workers to appease financial concerns – Reward Gateway data shows employees save an average of $1000 a year through employer-provided vouchers and discounts on items ranging from food and petrol to travel and fashion.

“Every little bit helps and $1000 in post-tax dollars, for some employees, is a really significant support to their household income,” Green says.

Salary sacrificing and employee share schemes may also be beneficial in reducing the financial concerns of workers, she says.

The financial burden workers face

● 77 per cent of Aussie employees are concerned about inflation and the rising cost of living. This increases to 85 per cent among Generation X workers

● 64 per cent agree their employers could do more to offset inflationary pressures and increased living costs

● 54 per cent are concerned with their salary and financial benefits

● 69 per cent believe a fair and competitive salary and benefits is a `must have’

● 55 per cent have not seen their financial wellbeing improve in two years

● 48 per cent feel employers need to prioritise financial wellbeing the most this year

Source: Reward Gateway

Originally published as How bosses should be helping their staff financially amid increased living costs