Q: I”™m worried about my employees. Our workforce is loyal and hardworking. Many of them don”™t have much put away for retirement. And it seems like living expenses are going up faster than the pay increases we can afford to give out. Am I crazy, or is it getting harder and harder to pay a livable wage? And what can I do about it?
Thoughts of the day: Lots of people have made sacrifices over the past few years to keep their companies afloat. Employees, too, are caught between a rock and a hard place ”“ glad to have a job, but worried about making ends meet. While many of us are living paycheck to paycheck, there are things employers can do to make a difference.
In the past few years, as company profits tanked, employee compensation and benefits stalled or declined. In today”™s tight economy, demands to rebuild, upgrade and market, along with increased expenses for transportation, electricity, etc. continue to eat up profits. Planning for employees seems to come last.
Meanwhile, employees are stretching to make ends meet. Some households have taken double hits as one spouse gets laid off and the other”™s salary flatlines or drops. Real middle-class wages have fallen over the past 30 years when adjusted for inflation.
What can a concerned employer do? There are a number of options. It”™s time to get creative.
Education is a big driver. Companies that continue to do the same old thing are likely to decline. Get smarter about how work is done. Find new niches and ways to compete more profitably. Invest in technology in order to boost profits.
Encourage employees to get on the education bandwagon. Start at the bottom of the organization where you”™ll have the most impact. Institute training programs that support technology upgrades.
Ask local and state agencies for training assistance and funds. Set up workplace-training sessions. Award certificates and pay increases when people complete milestones. Promote from within as employees build skills.
Make sure each employee has an individualized training program that leads to a better economic future. Keep in mind that two-thirds of people in the U.S. don”™t complete a college degree, which translates into higher unemployment, lower wages and poorer retirement prospects. Set aside funds for full or partial tuition reimbursement. Break the cycle by driving home the importance of skill building.
Budgeting and long-term planning are essential tools for companies as well as individuals. Teach employees about their role in protecting and growing the company”™s bottom line. Share information on costs. Ask employees to assist in sourcing quality vendors at reasonable fees. Show people how to build and live within a budget.
If you can”™t afford to pay the full amount for health care premiums, split the cost with employees. Investigate savings programs that close the gap on out-of-pocket health care. Hold training programs on how to improve physical and mental well-being. Encourage exercise and healthy eating.
Offer employees stock in lieu of pay increases. Stock helps everyone focus on what”™s good for the company; and distributions are taxed at a lower rate than payroll.
Set up a buying co-op. Ask a farm to visit the company office periodically with produce for sale. Use the company”™s purchasing clout to bulk-buy items that employees all need, and then pass the goods along at cost. Negotiate with a local child-care provider for day care and after-school discounts.
And as soon as funds are available, put them toward employee retirement plans. Encourage employees at every pay grade to save for the long term. Ask your company”™s insurance and investment advisers to come in and educate everyone on why it”™s importance to build a nest egg, get debt free and plan for life after work.
Looking for a good book? Try “Just Good Business: The Strategic Guide to Aligning Corporate Responsibility and Brand” by Kellie A. McElhaney.
Andi Gray is president of Strategy Leaders Inc., strategyleaders.com, a business-consulting firm that specializes in helping entrepreneurial firms grow. She can be reached by phone at (877) 238-3535. Do you have a question for Andi? Please send it to her, via email at AskAndi@StrategyLeaders.com or by mail to Andi Gray, Strategy Leaders Inc., 5 Crossways, Chappaqua, NY 10514. Visit AskAndi.com for an entire library of Ask Andi articles.
