REWARD
How payroll and HR professionals can help make work a more reliable route out of poverty
Charles Cotton, senior policy advisor at the Chartered Institute of Personnel Development (CIPD), the professional body for human resource (HR) and people development, provides a selection of tips on how experts in these departments can help staff in their organisations E ven before the current cost-of-living crisis, one in eight workers were struggling to make ends meet. With earning less than £20,000 a year. The survey can be accessed here: https://bit. ly/2JyYQY9. Organisations that act to reduce the
A liveable and fair wage A liveable wage enables people to lead a dignified life and meet the cost of living. There are several benefits in paying an hourly rate equivalent to, or higher than, the Living Wage Foundation’s voluntary living wage, including: ● improved recruitment and retention ● better staff-management relations ● higher employee engagement. Out of 2,500 employees questioned, almost three in every ten admit money worries have negatively affected how well they do their job
inflation predicted to rise to just over 11% in the coming months, it’s likely more will find themselves struggling. So, what actions can HR and payroll professionals take to improve the financial well-being of their workforce? Tackling poor financial well-being not only benefits your employees; it can also benefit your organisation. The CIPD report, Financial Well-being: An Evidence Review shows money worries can affect employee health, such as through loss of sleep, absenteeism or being unable to focus on work. The report can be viewed here: https://bit.ly/3eDEAsA. This affects performance. The CIPD’s 2022 Reward Management Survey finds that out of 2,500 employees questioned, almost three in every ten admit money worries have negatively affected how well they do their job. A proportion that jumps to more than one in three among those
risk of employees falling into poverty, and assist those who are in poverty, could not only have more committed and productive workforces, but they can also show they’re a responsible business to current and future employees, investors, customers, etc. To tackle in-work poverty, the CIPD recommends that HR and payroll professionals help their organisations create a financial well-being policy that includes the following: ● a fair and liveable wage ● opportunities for in-work progression ● financial well-being benefits. It has also has teamed up with the Joseph Rowntree Foundation (JRF) to create a free online resource that HR and payroll professionals can use to create their policies, which can be found here: https:// bit.ly/3qqgDYl.
| Professional in Payroll, Pensions and Reward | October 2022 | Issue 84 50
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