REWARD
Payroll – how the profession must change in the wake of the cost-of-living crisis
Julie Lock, commercial director at Advanced , discusses how payroll teams can use their knowledge to help workers through current the cost-of-living crisis
T he cost-of-living crisis presents a impact rising costs may have on their people. Financial worries can compound levels of stress, which, in turn, can impact the physical and mental well-being of employees. How will payroll need to evolve to meet the challenges presented by the cost- of-living crisis? What responsibilities do employers have to safeguard their people and what role does software have to play? unique challenge for businesses who simply cannot afford to ignore the According to research by Wagestream, 75% of the UK workforce have less than £200 in savings. That means a large majority of employees in Britain are living on a knife-edge financially, with any unexpected outgoings having the potential to cause serious harm. Now with Inflation at a high we haven’t
seen for decades and with wages in many sectors not rising to meet price hikes, it’s no secret that the cost-of-living crisis is set to have serious consequences for the long- term financial well-being of many. People are already making very real sacrifices to account for increasing daily costs and there’s genuine cause for concern that cutting back in areas such as food or utilities can actively impact their physical well-being. There’s also an already closely established link between money and mental health, something which is predicted to become especially pronounced as the cost-of-living crisis hits home. You can read more about this here: http://ow.ly/60ro50KRntG. With more and more people set to struggle to keep their heads above water, businesses cannot
afford to be blind to the impact financial struggles can have in leading to spiralling instances of anxiety and depression. What is the role of payroll in safeguarding financial well-being? Payroll professionals have a huge role to play in driving forward greater financial awareness and education among employees. It’s a real cause for concern that there’s little practical, financial advice given to people during their time at school. This means people end up joining the workforce with very little understanding of how to best manage their finances. Payroll teams should act as standard bearers of financial good practice, removing the stigma around talking about money worries and helping their people
| Professional in Payroll, Pensions and Reward | October 2022 | Issue 84 44
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