Inflation is raging around the world along with gas prices due to Russia’s attack on Ukraine. The prices were increasing before this major international conflict which has impacted costs negatively for consumers. Prices seem to be increasing for everything from fuel to groceries. Running a business can seem like a challenge with costs rising and money becoming tighter for customers/clients.
Wages have yet to be adjusted by governments as it has been decades since the US adjusted federal minimum wage. In that time, expenses like rent have multiplied in a variety of locations. Taking the time to evaluate increasing costs of living when considering raises is something that will be highly appreciated. Below will outline some tactics to allow a business to thrive in a world of high inflation.
Financial Education of Your Current Employees
The financial education of employees can allow them to see how 401k match programs along with other benefits impact them. Employees that make wise financial decisions will likely be less stressed out personally. You want employees to be able to take care of themselves so offering financial education can be a perk that they use to their advantage for years. Employee match programs for retirement accounts can truly add up over the years to a point where the money saved could be life-changing.
Employees nearing retirement age should know to move investments to more conservative options. Leveraging current assets can also be very important during inflation. Equity that is built over time in a house can be paid out through the use of a reverse mortgage. Getting monthly payments for a home that you live in is a perfect arrangement for those at or nearing retirement age. A reverse mortgage calculator found here https://reverse.mortgage/calculator can help you figure out how much money you can qualify for monthly.
Allow Employees to Work Remotely
Ditching the traditional office environment can save money on rent and utilities monthly. Companies saw during the pandemic that a number of employees were actually more productive in a remote setting. The pandemic pushed remote work ahead by years according to some experts on the matter. The roles available could attract current employees so matching the offerings of an industry is imperative.
Remote work can also save on wages for certain positions where the company might find international employees. There are some professionals that have vowed to never return to the traditional office setting. A business wants to retain employees during this time as it is going to be very expensive to train employees that might not stay with the company.
Picking from a talent pool that spans the entire country or even the world can improve the average quality of hire. People are looking for remote positions due to the additional time they have for their personal life. Eliminating a commute in a time when gas prices are astronomically high will not be lost on current and future employees. The reduction in childcare costs and more time at home are both very attractive to professionals that are parents.
Wages Need to Adjust to Attract Top Talent
Perks in the office don’t really appeal to most people that want a remote role. The compensation along with benefits offered can attract top talent. You want versatile employees that are flexible and willing to adjust to anything the company tasks them with. Listing salary ranges on job websites is very important. Some potential employees might not even consider spending time applying without a potential salary.
Hiring software is a great investment in a company as it helps make the hiring process more efficient. Sifting through hundreds of applications can be done automatically with top applicants identified. The software might even use artificial intelligence to help identify these applicants. The seamless process of scheduling interviews or sending rejections can be done automatically with a click of a mouse.
Adjust Pricing
Pricing needs to adjust with inflation as employee wages will likely have to increase. Employee retention is very important during the time of “The Great Resignation”. The pandemic revealed to some people how important work-life balance truly is for their mental health. Do not reach out to current clients to increase pricing as this could lead to negative impacts on client relations. Adjusting prices can be done by a certain percentage that aligns with the rest of a company’s industry. Clients that a company has healthy relations with won’t mind an increase in price as this is happening in nearly all areas.
Offer Loyal Client Discounted Pricing
The cost of customer acquisition can be quite high in some industries. Loyal customers can help save money on customer acquisition. The discounted prices will be more appreciated during inflation than ever before as costs could be rising on their end as well. Sending out email blasts or custom discount packages can be important. There are some clients that might have tighter margins than others so custom discount packages can factor this variable in. Price increases will be more acceptable after services/products have been discounted for a period.
Don’t Restrict Employee Side Hustles
Side hustles can bring in supplemental income for employees in various ways. Freelancing is a popular way to earn supplemental income on a consistent basis. Companies that try to impose rules against these side jobs might see employees leave. The time that a company owns is the time the employee is paid for, not for their free time as well. Skills that are learned through side hustles can be applied to their jobs in some situations.
Offering additional opportunities to earn for the company can also be done. There could be a need for marketing content that would be sourced to freelancers. If an employee has great marketing copywriting skills, they can earn while simultaneously improving these skills. Finding those hidden talents of employees can allow them to earn additional income. Don’t view this as costing more as this work would have otherwise been sourced to freelancers.
Inflation can be tough for any business of any size to deal with. Small businesses can thrive during this time with the right tactics. Do not let inflation cut into the profits of a business by making the needed adjustments.