How To Manage Employee Expectations During High Inflation Periods?
- Jale Aktug
- Nov 29, 2023
- 4 min read
We have to admit that employee engagement is dead! According to State of the Global Workplace report published by Gallup in 2023*, even 43% of engaged employees are watching for or actively seeking a new job.
Another research made by Gartner in 2022** shows that only 3% of organizations match pay increase to inflation.
Considering this high inflation period and unsatisfying increase in salaries, we can say that there will be much more employees seeking for new jobs. So, as a natural consequence, the ratio of engaged employees seeking for new jobs will be much more higher than 43% in coming months.
2024 will be a tough year for employees and organizations.
“How much salary increase can we give? What if our employees quit their jobs and start to work for other companies because of our salary policies? Can we attract talents? What effects these might have on our objectives?”
These are not the only questions organizations need to ask themselves. Instead, focusing on just these questions may prevent us from taking much more important steps towards the solution.
According to Employee Financial Wellness Survey made by PwC*** this year, 57% of employees say that finances are the top cause of stress in their lives. (We must keep in mind that stress is one of the biggest threats to human health.)
The same research also reveals the difference between employees who are stressed about their finances and who are not.
74% of employees seek financial guidance when dealing with financial decisions, crises, or life events. But according to Health and Wellbeing Report made by CIPD in September 2023****, financial well-being is the least focused subject at organizations, among other wellbeing subjects.
What actions do organizations take in these circumstances? Unfortunately, most of the organizations just focus on physical and mental well-being activities. We cannot meet employees’ expectations and preferences.
We must focus on analyzing employees' needs and expectations and shape our approach / practices accordingly.
What Can Organizations Do?
You have to know our employees! I'm not just talking about demographic data or information about their careers. Who are the employees? What are their priorities and difficulties in life? As an organization, how can you go beyond their expectations? What can you offer for these priorities and challenges?
Financial well-being. There are many actions you can take to increase employees' financial literacy and support them in managing and investing money correctly. What can the first step be for you on this subject?
Financial support packages. When there is an imbalance between income and expenses, employees experience more financial stress. How about being the first in helping your employees in such situations?
Fringe benefits. Organizations must go beyond fringe benefits such as health insurance and respond to employees’ needs occurring from remote/hybrid working that are not just limited to contributing to internet, electricity costs for days they work from home. Organizations must ask themselves these questions: What are employees’ difficulties in working from home? Not being able to cook during the busy work schedule, not being able to create a suitable environment for a meeting, going to an office in another city and staying in that city... What would be potential solutions that would both make the lives of employees easier and support them financially? For example, you can organize gatherings at cities where your employees live. By reaching an agreement with coworking spaces, you can ensure that they work together at regular intervals and strengthen the company culture. In addition, by providing a meeting room for important online meetings, you can support employees who do not have a suitable working space at home or have problems with their internet connection.
Motivation packages. During financially difficult times, we can neglect ourselves and our areas of interest. How can you better know your employees and support them in setting aside time for themselves? For example, you can learn about employees' areas of interest and subjects that matter to them in life through a survey. After a busy working period, you can give them such a gift that will make them spare time for themselves. Considering that holiday costs are very high, you can create an opportunity for them to take their loved ones to a holiday.
Open communication. It is necessary to consider this topic from two perspectives. How can you enable employees to speak to you openly in case of need? Also, can you be brave enough to eliminate misunderstandings and wrong expectations by openly sharing what you can and cannot do for employees in this high inflation period?
Managerial approach. Managerial approach is one of the top job change reasons among employees. Are your leader assessments designed to select the right managers? Do you invest in leadership development programs and adopt the coach-style leadership approach throughout the organization? It has become even more important recently.
Employee experience. All touch points, starting from the moment you first contact a candidate until the last day of their job determine if they will recommend you as a great place to work or not. In particular, important moments that matter in the employee experience (recruitment and orientation, performance & feedback, promotion, etc.) leave indelible marks on our minds. So, what about the experiences you offer to your employees? For example, you can plan an orientation program that will make it easier for new hires to get to know and adapt to the job, processes and teams they will work with. You can make them feel valued by adding personalized approaches in that process. Likewise, by structuring promotion or internal job change processes, you can ensure that important moments that matter make good experiences for your employees.
It is important to remember that all the steps you take or do not take will spread among your employees and their friends / families. Considering high turnover rates and high recruitment numbers as a result, it is your actions that will make candidates choose you or not.
Do you want to save the day or your future? The decision is up to you…
This article was written in Turkish for Inc. Türkiye in November 2023 by Jale Aktug Aydogmus, Founder of Outliers Global
Comments