Supporting Staff Through the Cost of Living Crisis

Many individuals continue to be affected by the rising cost of living. Alongside this, an increasing number of organisations are also feeling financial pressure, resulting in things such as limits on hiring, pay freezes, lower (or non-existent) bonus payments, and restrictions on training and development.

We always encourage organisations to consider both financial and non-financial motivations – there are some elements of reward and retention that do not need to be expensive (and in some cases no cost at all) but that can result in increased morale, motivation and processes.

Some things you might want to consider would be flexibility in working hours, the ability to work from home, reward and recognition schemes (i.e. employee of the month), recommend a friend schemes (to reduce recruitment costs), salary sacrifice, or internal benefits such as succession planning, mentoring and training.

Creating an environment where staff can discuss any financial concerns in an open manner is essential. Financial pressures can result in a number of effects for employees, including presenteeism (people attending work when sick or not well enough to do so), reduced performance, and in extreme cases burnout through having to work other jobs to make ends meet.

Case law

A recent case reported through the tribunal system was that of a civil servant who was accused of earning £350,000 by simultaneously juggling five full-time roles in the public sector.

Between February 2020 and September 2023, Kashim Chowdhury used a combination of sick notes and working from home to help him cope with his workload. He also said he was caring for his “unwell mother”. Over three years he held overlapping jobs at three organisations.

The tribunal heard of the lengths he went to in convincing his employers he was unwell, including wearing white make-up during a video call to look pale, which wore off during the call.

He is accused of 9 counts of fraud, which is denied. He denies that he acted dishonestly or intended to make financial gain. Prosecutors say he “exploited” the work from home culture that existed over the pandemic.

Eventually his performance suffered, and he was signed off from some jobs due to “mixed anxiety and a depressive disorder” but he did not hand his sick note to all employers.

If you need any support to review your policies, processes or reward and retention strategies, please contact us on team@hrprime.co.uk.