According to Statista, the rate of global inflation will be 3.81%, with some countries experiencing higher rates than others. They also expect the level to start to come down slowly from 2023 onwards.
The reason for the rise in inflation is down to slower supply and demand chains during the pandemic, the climate crisis that has caused flooding to some areas across the globe, and the massive hike in energy prices.
What will this mean to employees across the globe?
According to The Guardian, who cite research the IMF, there will be higher inflation especially in the USA, and slower global growth. The New York Times reported that experts have said that high inflation isn’t going to stick around because people built up savings for any emergency that could crop up, but others are more concerned. A fix for the situation seems to be employees asking their employer for a higher wage.
However, although some experts believe higher wages is the answer to tackle high inflation, some employees may not receive a pay rise whereas some might. For some lower-paid jobs, it might mean skimping and saving, avoiding buying any luxuries, or putting off any house maintenance, for example. For others, it could mean unsubscribing from streaming services, not buying that gym membership, and finding cheaper alternative travel into work.
The high rate of inflation has also forced some employees to find jobs with higher wages, and in some cases moving to a new region of a country altogether where prices (e.g. mortgage) is lower. This has increased the competition for talent amongst businesses who want to attract and retain employees at this difficult time.
How does a total rewards and benefits platform help employers and employees during high inflation?
Put simply, employers need to offer their existing and perspective employees a comprehensive total rewards and benefits package that complements a decent wage, and this will ensure businesses keep the talent they have and attract and retain more talent. A total reward and benefits platform helps employers create an exceptional benefits and rewards experience while reducing benefits administration, automating processes, radically improving the communication of their employee value proposition and ensuring better data governance and management of benefits and rewards costs.
With a platform in place, employees will find that some employers will pay for their gym membership, offer health and wellbeing benefits, and be kept up to date through an app of the latest financial developments within the company. In times of financial instability, it could be said that every little helps, but in the case of offering your employees the right benefits and show them their total worth, you’ll be able to navigate through the tough times and create some stability.