Benefits of Rewarding Employees As a Tool to Combat Effects of Inflation

Person balancing a stack of coins on a wooden balance structure

As an employer, are you aware of the benefits of helping employees and how you can help them better deal with the rising inflation?

Canadians are experiencing the effects of soaring inflation each time they fuel up their vehicles, pay a utility bill, or shop for groceries. The increased cost of living adds stress to the lives of many and has employees looking to employers for assistance.

According to a recent survey by Ento Canada, 57 percent of Human Resource leaders and Canadian employers have considered adjusting employee benefits and rewards to contend with inflation and the labour shortage.

Bar graph showing Canadian Inflation Rate from 2012 to 2022

Adjusting employee benefit packages to increase total compensation for employees is a relatively easy and more cost-effective way to make and keep employees happy. Employers can realize the significant benefits of rewarding employees and have multiple options available to them.

As a business owner, here are some options to consider:

  • Increase your contributions to an employee’s healthcare premiums
  • Add a wellness account or personal spending account
  • Or even pay into other flexible benefits

Though these initiatives may come at an incremental cost, they can help alleviate some pressure from employees, boosting morale and productivity.

Employers can also invest in financial literacy and holistic health programs for employees, improving both their financial and personal well-being.

Studies have shown that workforces with lower stress are more productive, and less likely to be looking for other employment.

Talk to our experts at Benefit Strategies Inc. to learn more about the benefits of rewarding employees. Discover how you can combat inflation by enhancing employee benefit plans as an alternative to standard wage raises, and how to attract and retain talent.

To learn more, call us at (780) 437-5070 or send us an email.