A visit to the grocery store and a glance at the day’s headlines are quick reminders of the tough economic times we’re living in. Inflation is hitting our pocketbooks; the cost of goods is rising and we could be headed for a recession. This uncertainty is clouding the financial futures of employees trying to keep up with their bills in a post-pandemic world.
Budgets are tightening and workers are looking for ways to meet the rising cost of living. While they’re trimming expenses, they may also be looking for side hustles or new jobs if their salaries aren’t enough to help them stay afloat.
Companies are facing their own financial challenges. Compensation increases aren’t always feasible, yet it’s more important than ever to focus on remaining competitive when it comes to attracting and retaining talent.
Some employers are finding other ways to provide staff with financial relief, such as offering an ‘inflation bonus’.
An ‘inflation bonus’ is money given to employees beyond their existing base wages or salaries. Several North American companies have already announced their plans to jump on the ‘inflation bonus’ bandwagon. Lowe’s recently announced it’s spending $55 million on bonuses for hourly workers. Airbus says it’s giving employees a $1,490 cash bonus to deal with rising inflation. Financial firm USAA is offering some employees a one-time bonus of $1,000.
An ‘inflation bonus’ could look like any of the following:
A strong compensation strategy is key, but it’s not the only way for businesses to attract and retain talent – especially as they look to improve their own bottom lines.
Here are 5 other ways companies can help workers with extra costs from inflation:
There are many ways your organization can support and retain employees. If you have questions about where to start or whether you should consider offering an ‘inflation bonus’, contact us so we can work together to create solutions that work best for you and your organization.