It is no longer news that most Nigerians are experiencing severe economic hardship due to the recent FX policy and subsidy removal.
The economic challenges arising from the opening up of the foreign exchange market and the removal of petrol subsidies have resulted in soaring inflation and a significant drop in the value of the naira against the dollar.
This has led to skyrocketing fuel prices, affecting the costs of other essential commodities and services, including food items, transportation, education, and healthcare.
This increased economic burden falls on the citizens. It has significantly impacted the lives of Nigerians, leading to calls for the government to provide palliatives and policies to cushion the biting effects of the deteriorating economy. As citizens continue to wait on the government to roll out relief packages for the public, the private sector has swung into action, taking up the gauntlet of easing the financial burdens of its workforce.
Many organisations have taken swift action to ease the financial burdens its employees face, representing a substantial portion of the Nigerian population.
For, example, Union Bank of Nigeria (UBN) said it has implemented a comprehensive compensation strategy, which includes a notable upward salary review for all its staff. This salary increase applies to full-time and contract staff and support staff, such as cleaners, drivers, and security guards.
“The salary review, which is the second time this year amounts to over 50 per cent, demonstrates Union Bank’s commitment to providing an enabling environment for its customers and dedicated employees. In addition to the compensation review, the bank will launch a bus pick-up service for all staff to alleviate the high cost of transportation, showing its dedication to improving the overall well-being of its workforce,” the Bank said.
Union Bank noted that the actions align with its core values, which prioritise customer and employee welfare, saying that “the bank has a track record of impactful humanitarian interventions, such as the Union Bank Employee Volunteer Scheme and Union Cares program, which have provided relief to impoverished communities nationwide. Additionally, the bank’s Save & Win Palli Promo, launched during the height of the COVID pandemic in 2020, has been widely popular and has rewarded over 1,000 customers with over 100 million naira. The promo is set to return for its third season later this year.”
While private sector organisations are taking proactive steps to support their employees during these trying times, there is a need for the government at all levels (federal, state, and local) to step up and address the multi-dimensional poverty and crippling economic hardship faced by the people.
Ways Employers Can Help Staff Through High Cost Of Living
Employers are recognising that they need a well-defined wellbeing strategy to support their employees when they need it most
Salary Sacrifice Scheme
Employers can offer what is known as ‘salary sacrifice schemes’. These schemes allow staff to pay for things through payroll and therefore they are paid for before the employee receives their salary. This reduces the amount of tax paid on certain items and therefore can help your employees to save money.
Help Employees To Reduce Expenditure
Employers could offer free or subsidised meals, drinks and snacks at work to help support staff who are struggling with the everyday cost of living. Employers could offer more flexibility for their staff such as working from home (where possible) to avoid the cost of commuting to and from work.
Promote Financial Wellbeing It is now more important than ever that employers ensure they are paying real living wages and provide regular salary reviews and increases where possible. Businesses could also consider paying one off lump sum payments to staff during the winter months to assist with the increased cost of living.
Employee Health And Wellbeing
Having a healthy workplace is important for people to flourish and reach their full potential, and all businesses should be taking additional measures to support employee wellbeing and health.
As cost of living and inflation rises in the country, businesses have an obligation to look out for their workforce. Since not all businesses are in a financial position to give pay rises, but there are non-financial ways companies can help their employees cope with rising costs. The goal for every initiative should be to increase employee wellbeing. That is the only way to retain your employees, attract talent and ride out these turbulent times together.
