The United Kingdom is no stranger to the cost of living crisis. Many employees today are struggling to make ends meet as the gap between wages and expenses continues to widen. As an HR director or HR manager, you probably know that the cost of living crisis affects your employees not just at home, but also at work.
This is because high levels of employee uncertainty can have a significant impact on your organisation’s performance and productivity. In this blog post, we’ll explore how the cost of living crisis affects employee uncertainty and how it translates into a business impact.
- Reduced morale: One of the most significant impacts of the cost of living crisis is that it leads to reduced employee morale. When employees struggle to make ends meet, they may become disenchanted with their jobs or feel undervalued. This, in turn, can lead to lower employee morale, which can be detrimental to your business.
- Increased absenteeism: If employees are worried about paying their bills or putting food on the table, they may be more likely to call in sick or take time off work. This can lead to increased absenteeism, which can have a significant impact on the productivity of your organisation.
- Lack of engagement: When employees are uncertain about their financial future, they may become disengaged at work. This can manifest in a lack of interest in their work or a lack of engagement with their colleagues. This can be problematic in terms of collaboration and teamwork, which are essential for business success.
- Retention issues: The cost of living crisis can also lead to retention issues within your organisation. Employees who are struggling financially may be more likely to leave for better-paying opportunities. This can lead to higher turnover rates, which can be costly for your business in terms of recruitment and training.
- Negative impact on company culture: Finally, high levels of employee uncertainty can have a negative impact on your company culture. When employees are worried about their financial future, they may be less likely to participate in company events or team-building activities. This can lead to a lack of cohesion and a breakdown in the overall company culture.
Conclusion:
The cost of living crisis is a challenge that affects many organisations today. As an HR director or HR manager, it’s essential to understand the impact that the cost of living crisis can have on your employees and your business. By addressing employee uncertainty and offering support to those who are struggling financially, you can mitigate the negative impact of the cost of living crisis and help your organisation thrive. So, if you haven’t yet addressed this issue within your organisation, now is the time to start.
Get in touch with INTOO today to see how INTOO can support you with our unique services in Managing in times of change.