With the Bank of England forecasting inflation will peak in late-2022 at a staggering 11 per cent, the cost-of-living crisis is not likely to ease up any time soon. For millions of people, this means the value of their earnings is eroded; even if they receive a pay rise it’s likely to be well below the rate of inflation, meaning a cut in real earnings.
For employers, this poses a number of challenges, not least the potential damage that arises from having a stressed and underperforming workforce. But it also adds to the risk of staff moving on – something that’s already being seen in the post-Covid ‘Great Resignation’ – with people more likely to seek a better-paid job.
One way in which HR can help is through payroll and more specifically through the use of pay-on-demand. This enables employees to access money they have already earned when they need it, rather than having to wait until a set pay-day. For those on lower incomes in particular, this can make a real difference, potentially avoiding the use of credit cards or, worse, payday lenders.To download please sign in.
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