Addressing Worries Around Inflation & Supporting Workers

How Leaders Can Address Worries Around Inflation and Support Workers

Employees feel the effects of inflation when they pay more for everyday essentials, and most look to their employer to at least match the rate of inflation. Failing to boost employee compensation accordingly could mean losing some of your current employees, who would be tough to replace in an already tight labor market.

Here are five ways to support workers and address worries about inflation:

1. Look for other way to relieve the financial burden
   According to a survey by Glassdoor, 80% of employees prefer additional benefits over a pay increase. Some ideas include allowing employees to work remotely, paying a larger percentage of employee health insurance costs, offering tuition reimbursement and more.
   
   
2. Proactively address employee concerns
   Asking employees how inflation impacts them individually can be tricky, but simply reaching out to people can uncover some great insights into what matters to your team. Those insights can help you create a total compensation package that meets their needs.
   
   
3. Leverage available compensation data
   If your organization decides to offer pay raises, how will you determine how much more you should offer? If your decisions aren't backed up by data, you could wind up giving pay bumps that don't move the needle on talent attraction or retention. A compensation analysis can help you determine whether your salaries are within range nationwide, not just within your local market.
   
   
4. Incorporate salary ranges
   Rather than setting a fixed salary for specific roles, consider creating a pay range, as this can motivate employees to grow within their positions. Having a range both makes the position look more appealing and gives the employee something to look forward to during their role’s lifecycle.
   
   
5. Take calculated risks
   Promoting people from within can offer a lot of benefits. For instance, you know the quality of their work and how they fit into organizational culture, and promotions encourage loyalty. If you have valuable people you want to hold on to, it may be better to promote than risk a valued employee leaving if they don’t feel there’s room for growth.

How ADP® Goes “Above & Beyond” in the Face of Inflation
Based in Indianapolis, Above & Beyond is an accounting firm that supports small business owners across the US with tax preparation and advisory services.

When her firm faced the decision of how to best assist and advise their small business clients, Above & Beyond Tax Services founder, Nicole Edwards’ search led to ADP®, which she assumed wouldn’t be a fit for her small firm. She quickly discovered that ADP has been serving the small and medium business marketplace in major ways for many years.

She says, “When I looked into ADP, I saw a real opportunity for improvement and development on how I would advise and assist my business clients, especially with payroll, HR, and benefit needs.”

Edwards also looks to develop the next generation of business leaders and their business acuity, especially during such a tumultuous time of inflation and resignation. A key reason for choosing ADP is attributed to the wide selection of free ADP webinars, trainings, and articles that offer helpful and strategic insights on many business topics.

ADP’s value extends far beyond payroll.
Handling employee compensation struggles amidst inflation isn’t easy. ADP assists clients in all sectors not only with payroll, HR, retirement, health insurance, and more, but also through providing insightful resources to educate their business clients and guide them through the chaotic environment of running a business.

“As entrepreneurs, there are many processes to running your business that are not cost-effective to manage on your own. ADP provides many of the services and resources we need, and at a fraction of the cost,” says Edwards.

Choosing the right payroll solution provider can help you keep the administrative wheels turning, while you focus on your passion. Visit adp.com/ACCE to learn more about the Association of Chamber of Commerce Executives special membership discount. You may also reach out to our ADP representative directly at Brody.McGrath@ADP.com or
(317) 796-5498.

ADP provides small business payroll and HR software. From basic payroll to a full suite of HR tools and services. Calculate and pay your employees anytime, anywhere. With RUN Powered by ADP®, you get 24/7 support from certified payroll experts and get help you need, when you need it.