Singapore’s rising inflation rate in 2022 has been a major concern for businesses - especially for their employees. According to the latest Singapore Index of Inflation Expectations (SInDex), the city-state’s headline inflation expectations for the year hit an 11-year high, rising to 4.6 per cent in a September poll from 3.9 per cent in June.
Employees are feeling the pinch because of the cost of living crisis, with prices of daily essentials increasing over time. While white-collared professionals and top executives may be less impacted by the rising costs of goods and services, the rank-and-file workers are the ones who are typically affected the most. They usually have to spend a large amount on daily essentials, and with costs rising, they will find themselves making difficult financial decisions.
That said, supporting employees has become a priority, and there are several ways in which employers can help employees cope with rising inflation in Singapore. In this Pacific Prime CXA article, we have 3 practical ways business leaders can support employees with the high cost of living crisis.
1. Actively listen to employees’ concerns
Your employee's problems are your problems. Period. Remember that the effects of inflation not only affects your business but also your employees, and, therefore your operations. If employees have financial concerns that they need to let out or share, then it is your obligation to provide anonymous communication and feedback channels for employees to voice their thoughts with you.
Not only does this allow you to collate information in an efficient manner, but you can tailor solutions and approaches while showing your employees that you care for their financial well-being.
2. Allow for remote or hybrid work arrangement
It doesn’t hurt to offer employees the option to work from home or wherever they want so that they can manage their expenses while concentrating on their performance and workflow.
“In general, people spent more on transport (60.2 per cent), shopping, entertainment and travel (56.7 per cent) and food (38.7 per cent) over the past year. This could likely be due to inflation and pent-up spending from the reopening of borders and easing of Covid-19 measures.” - Mr Irvin Seah, Senior Economist, DBS Group Research
Allowing employees to come up with a new work arrangement can help employees save on commuting fares and food as well. They can cut back on such expenses which helps them put more away in case of uncertainties ahead.
3. Introduce a financial wellness plan
In case you weren’t aware, financial wellness is the state in which you can comfortably manage your money in pursuit of reaching both your short- and long-term goals, according to StashAway. At Pacific Prime CXA, we have known for a long time that financial wellness can only be improved if employers have the right tools and resources to support their employees during financial difficulties like the current rise in the cost of living.
Fortunately, we can help employers like you address your employees’ financial health risks by using technology to drive engagement and improve financial wellness with a number of resources and partners. You will also benefit in the long run, with unparalleled support from experts and access to a comprehensive flex and wellness portal.
Reach out to Pacific Prime CXA
From business plans and tailored employee benefits solutions to help employers and their employees with the cost of living crisis, Pacific Prime CXA can help you design, implement and administer (or optimise) your employee benefits and financial wellness plan using the latest insurtech methods and approaches. Contact our team of experts to learn more or request a FREE demo!
About Pacific Prime
Pacific Prime is an insurance advisor that offers local insurance solutions and a wide range of plans to cover businesses, individuals and families. For more information about any of our articles, or to find out more about the services we offer, visit our site here.