Cost of Living - Employees, What Should You Expect?

This month we are putting a special focus on the cost of living crisis due to its impact on the decisions we make around work. As so many are finding that their wages are not rising in line with inflation and prices, this is effectively a big pay cut… for everyone.

As the people who pay us, naturally, we look to our employers and consider whether we are getting enough support. This is a crisis that is hitting everyone, and unfortunately, that also means the organisations that employ us. 

However, it has led to more honest workplace discussions around the support we are given from our employers and how much we should expect. 

Whether you are an employee or an employer, this article is for you.

Should I ask for a payrise?

There is often a fear of asking for a pay rise due to the concern that it could unsettle people’s work situation or impact work relationships. People worry that they would be seen as ungrateful or disloyal to the company. However, with the crisis as widespread as it is, it is likely that your employers will have already put some thought towards what it means for salaries. 

Given the severity of the crisis, most people are experiencing a noticeable rise in outgoings. The situation will be very different for each employer and whether they are in a position to be able to give wage increases, but most people would be entirely reasonable if, after some thought, they considered approaching their company for a raise. 

Despite how reasonable it sounds, “the cost of living is rising, I need more money to afford my bills” is unfortunately not how to ask for a pay rise. While the cost of living can definitely be referenced, ground your argument in demonstrating how your performance deserves to be acknowledged and how you have grown your responsibilities beyond your original job description. Here are some quick tips:

• Come up with a strong case that your performance and responsibilities have grown in value to your employer. Demonstrate the value you bring.
• Salary research: if indeed, glassdoor, LinkedIn etc. suggest that the industry average is higher than what you are on this is an excellent bargaining tool.
• Name a figure: this is really hard we know, but with careful consideration of your needs plus how much you think you are worth to the company, come up with a figure that your company can work with. Don’t make them work harder or feel more uncomfortable than you have to.

What else can you expect?

Ultimately, what people want from their jobs is a liveable wage and proper time off. Without those, there’s no conversation to be had. A ping pong table does little to inspire anyone who can’t pay their rent.

Since 2019 we’ve been running the Escape 100 campaign, where we find the very best companies with the most progressive working practices. Since the pandemic these conversations have become even more prominent, so whether you’re an employer or an employee, these are a few examples of how companies support their staff. 

Flexibility

This is quickly turning from a nice-to-have into a must-have. Employees everywhere are demanding flexibility from their employers, whether this be in time or in location.

Starting with time flexibility. This is so important, especially to working parents. Time flexibility grants your employees control and autonomy over their day, it is an explicit nod to the fact that your employees have a life outside of work and that responsibilities such as children don’t respect 9:00-5:30 working hours. 

The most popular and so far, very successful, time benefit is the 4-day-work-week. We practice what we preach here at escape, and we have been a 4-day week employer for over a year. It’s been a massive success. It’s such a radical, all-in-one solution for employees. For people who are struggling financially, it allows them an extra day to earn a little more money through a side hustle or to provide important social care. 

The option to work from home is effectively a way for companies to give a payrise for free. Saving someone the cost of their commute can seriously add up over the course of a year. It also provides a much better work-life balance for employees.This study showed that remote workers are 20% happier. 

Help with costs

With more of us enjoying the option to work from home, is it reasonable to expect our employers to help out with the costs this involves, eg. internet and heating our homes? Not all companies will be in a position to provide this, but it is something all companies should consider. 

Unfortunately, there are no particular rules for employers to follow when supporting staff with the costs incurred by working from home. Workers will, presumably, be using more energy in their homes than they otherwise would at work and we are seeing some employers help with this burden. Employers still retain responsibility for health and safety and therefore may well be required to ensure that their staff have appropriate chairs and equipment. Employers should also be providing risk assessments to ensure that workers have safe and proper conditions to work from at home.

The responsibilities of employers are complicated when someone may only work one or two days a week from home, or when the contract doesn’t state that they are required to work from home. However, asking what your company’s regulations are around supporting workers from home should be a good way to start a conversation with your employers about the support that they should provide to you.

Clear pathways to promotion and pay rises

This is a biggie. If, as a company, you are unable to provide a pay rise that an employee has asked for, this should never be the end of the conversation. Pathways to promotion, upskilling, moving up in the company, taking on more responsibility, and ultimately earning more should always be laid out for employees. If you want to earn more to keep up with your bills, or to get into a position to start saving, then you should always be clear on how to get there.

Health and well-being

As the newspapers and news channels scream into our faces daily about how difficult things are globally, let alone individually, employees might rightly need some support with their mental health. There are a number of companies that focus on improving mental health in the workplace and this is something that all companies should be providing. When more of us work from home, more regular check-ins are vital, or a beefed-up HR department who are focused on employee well-being. 

Quick list of old benefits that don’t count anymore

• Mousepads
• Changing rooms
• Tea/coffee
• Flexibility to work one hour outside of the core hours of 10-4
• Fruit bowl
• Cycle to work scheme
• Can of warm beer on Fridays
• A sofa 
• Pool table
• First Aid Training
• Flu jabs
• FREE WATER
• The legal minimum number of holidays and listing bank holidays like you invented the concept of Easter.

As a champion of progressive and caring organisations, Escape believes that for a company to be truly meaningful, it has to consider taking care of its staff as one of its most important responsibilities. A progressive company doesn’t provide the bare minimum benefits to avoid raised eyebrows or just to entice people in, it provides brilliant benefits because it cares for people, and that starts with its staff.

We hope that as an employee this will help you begin conversations with your employer about the kind of support you may need this winter. Don’t be afraid to ask for what you need and remember what a great job you do for them. 

#AskEscape

At Escape, we’re here to help you create a future that you’ll love and get a job you care about. Right now, our futures need as much support as possible and we want to help. We’ll be running monthly #AskEscape campaigns where we’ll be taking questions from you on a range of topics from money and savings to interviews and CV tips. We’ll seek expert responses from our army of purpose-driven companies. This month we are focussing on the cost of living, if you have any questions, please get in touch with us onTwitter, LinkedIn, Instagramor by email at tim@escapethecity.org

Send us your questions!

If you want to read more about what progressive companies are doing then check out our series shining the spotlight on some of our Escape 100 winners. Check out 5 green employee benefits (and the organisations offering them), alongside4 organisations we love with a 4-day work week.