how firms are wrestling with cost of living spikes
Global – The last few years have greatly shaken the economy – the covid pandemic, the lockdown, the war between Russia and Ukraine and much more. Whether it’s coffee, food, housing or bills, the staples of our daily lives have become more expensive in the last six months. Wages are also rising, but not as fast, which means that many people have to struggle to survive.
Big UK banks like Barclays and Lloyds are giving out-of-season pay raises or cash bonuses to low-wage employees, while smaller businesses are also giving bonuses to workers to help them cope. The current rise in the cost of living. Other large companies are also trying to raise pay or give bonuses to underpaid employees.
On the other hand, firms want to save money in case a recession hits, and some organizations may not be able to move quickly. Logically, they also have a desire to keep workers in a tough job market that favors job seekers, because if firms don’t do more to help workers, workers can go where they can.
Many workers are struggling to cope with increased costs associated with rising energy, fuel and food prices due to the war in Ukraine, as well as shortages of goods and labor. Now almost everything is expensive – food, clothing, gasoline, child care and utilities, and housing; This also affected housing rent, which increased several times. Even the commute itself seems more expensive as commuting, food and other unexpected expenses rise.
Decades ago, workers in many Western countries joined unions that pushed for cost-of-living adjustments. But these days, union membership in the UK and the US has plummeted, meaning that, in the absence of collective pressure, it is up to companies to decide whether they should help.
Many of the firms that choose to help are large private sector organizations. Some throw money at the problem. ExxonMobile, which gave US workers a one-time bonus of 3% of their pay to weather price spikes. In the UK, Virgin Money offered employees a one-time bonus of £1,000 on top of a 5% pay raise in January.
There are companies that decide not to give a bonus or a raise, but try to help an employee to a friend. Some small companies in the US have started giving workers gift cards or $50 weekly allowances to pay for fuel or offer free meals for employees who come to the office. Others allow employees to work from home, which means savings on travel and other work-related expenses.