Inflation is at record highs and its effects are seeping through into all aspects of society: including how we work and, of course, our HR departments.
Here are three ways that inflation is starting to affect HR.
1. Tightening budgets
Inflation ultimately means higher prices for products and services and that’s not good news when it comes to organisational budgets.
Human Resources departments should expect senior management (rightly or wrongly) to cut back on areas of investment that are seen as long-term objectives rather than short-term, quick wins.
2. More employees access company mental health resources
It’s concerning that some HR professionals are reporting seeing more of their employees turning to company-administered mental health resources to help them cope with the mental strain of living through one of the worst cost of living crises in history.
Organisations have a statutory duty to look after the physical, and the mental health, of their employees, so it’s vital that employers take this issue seriously. Training mental health first-aiders is a good way to start building a base of support that can be accessed in the workplace itself.
3. More remote work requests
Human Resources professionals on social media have been reporting a deluge of employees requesting more flexible working arrangements. On the surface this might look like an odd coincidence and not directly related to inflation, but it’s actually deeply intertwined with it.
Rising fuel prices, combined with ongoing industrial action in the transport industry (itself partly caused by inflation and transport workers asking for their wages to meet the new cost of living) have made it more and more difficult for employees to commute to the office without incurring significant costs.
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