When employers recognize the interconnectedness of employee wellbeing and business success, they lay the foundation for a sustainable future for their organization. Photo via Getty Images

Inflation impacts everyone, including individuals, the workforce and business leaders. As the cost of living continues to rise, employees face diminishing purchasing power, shrinking retirement savings and higher stress levels.

In PwC’s 2023 Employee Financial Wellness Survey, 57 percent of respondents named finances as the top cause of stress in their lives. With these factors in play, employers should consider the support they provide for employees’ financial health, which directly impacts them emotionally and physically. When any one of these elements are out of alignment, employee productivity and engagement suffer, in turn impacting business success.

The Inflation Conundrum

Inflation is the silent financial predator that affects every aspect of life. Coupled with the financial responsibilities of the workforce, like child or elder care and college tuition, inflation erodes the value of money over time. As prices surge and the purchasing power of the dollar declines, the effects can ripple through a person’s life, including the workplace. Here are several ways inflation can impact employees:

  • Diminished Salary Satisfaction: Inflation does not discriminate. When prices rise, compensation does not follow suit at a one-to-one ratio. This can lead employees to feel their salaries are no longer sufficient to maintain their desired standard of living. Employees who do not have enough for their daily needs are not saving for their future goals, which exacerbates salary dissatisfaction.
  • Eroding Retirement Savings: A 401(k) is a critical component for many employees’ long-term financial strategy. However, inflation can interfere as the cost of living finds employees allocating less to their retirement accounts. Fewer contributions can have a significant long-term impact on the workforce’s financial goals.
  • Increased Stress and Anxiety: Financial insecurity and the higher cost of living can impact mental health. The stress and anxiety common with financial challenges often makes its way into the workplace, resulting in decreased productivity and engagement, interpersonal tension and employees seeking additional or alternative employment opportunities.

The PwC survey underlines how financial stress impacts employees beyond their pocketbooks with 50% or more reporting a negative impact on sleep, mental health and self-esteem. While physical health and relationships at home are not far behind at 44 percent and 40 percent, respectively.

The Holistic Approach to Employee Well-being

In times of economic uncertainty, it becomes vital for employers to prioritize their employees' well-being. A holistic approach, proactively addressing emotional, physical and financial health, can mitigate the negative impacts of inflation and foster a more engaged workforce. A few strategies to consider include:

  • Employee Assistance Programs (EAPs): Employee Assistance Programs are a valuable resource for employees facing personal or financial challenges. These programs provide access to counseling services, financial advice and other forms of support. Offering EAPs demonstrates an employer’s commitment to the overall well-being of their workforce.
  • Greater 401(k) Contributions: Employers can consider increasing the company’s 401(k) contributions in recognition of the strain inflation places on employees' retirement savings. A higher match encourages employees to save more and helps offset the erosion of their retirement savings due to inflation. It is important to note, this is not a short-term solution. Once implemented, it is difficult to walk back these changes without negatively impacting employee morale.
  • Open Communication: Open and transparent communication with employees is always key but is especially paramount to understanding their concerns and needs during periods of inflation. Regular surveys or meetings to gauge employees' financial stress levels and field suggestions for improvement can provide valuable insights.
  • Financial Incentives: Though it is not an immediate fix to immediate financial needs, incentivizing employees to save and invest can be a win-win strategy. Employers can offer financial literacy programs, workshops, or provide bonuses or incentives tied to employees' financial goals. These resources, trainings and initiatives can empower employees to make better informed financial decisions.

The Consequences

Business leaders should realize inflation impacts more than balance sheets, sending shockwaves deep into the health, morale and productivity of their workforce. And when employees are suffering with their mental, physical or financial health, they are more prone to look for employment where these needs are met.

Employers are at a crossroads where they can create a workplace culture that not only supports employees during times of inflation but also fosters resilience and loyalty. EAPs, increased 401(k) contributions, open communication, and financial incentives are just a few of the strategies that employers can implement to ease the burden of inflation on their workforce.

When employers recognize the interconnectedness of employee wellbeing and business success, they lay the foundation for a sustainable future for their organization. Employees can weather the storm and eventually thrive when armed with the proper support and tools.


------

Kelly Yeates is vice president of service operations with Insperity, a leading provider of human resources and business performance solutions.

Ad Placement 300x100
Ad Placement 300x600

CultureMap Emails are Awesome

Houston femtech co. debuts new lactation and wellness pods

mom pod

Houston-based femtech company Work&, previously known as Work&Mother, has introduced new products in recent months aimed at supporting working mothers and the overall health of all employees.

The company's new Lactation Pod and Hybrid Pod serve as dual-use lactation and wellness spaces to meet employer demand, the company shared in a news release. The compact pods offer flexible design options that can serve permanent offices and nearly all commercial spaces.

They feature a fully compliant lactation station while also offering wellness functionalities that can support meditation, mental health, telehealth and prayer. In line with Work&'s other spaces, the pods utilize the Work& scheduling platform, which prioritizes lactation bookings to help employers comply with the PUMP Act.

“This isn’t about perks,” Jules Lairson, Work& co-founder and COO, said in the release. “It’s about meeting people where they are—with dignity and intentional design. That includes the mother returning to work, the employee managing anxiety, and everyone in between.”

According to the company, several Fortune 500 companies are already using the pods, and Work& has plans to grow the products' reach.

Earlier this year, Work& introduced its first employee wellness space at MetroNational’s Memorial City Plazas, representing Work&'s shift to offer an array of holistic health and wellness solutions for landlords and tenants.

The company, founded in 2017 by Lairson and CEO Abbey Donnell, was initially focused on outfitting commercial buildings with lactation accommodations for working parents. While Work& still offers these services through its Work&Mother branch, the addition of its Work&Wellbeing arm allowed the company to also address the broader wellness needs of all employees.

The company rebranded as Work& earlier this year.

Rice biotech studio secures investment from Modi Ventures, adds founder to board

fresh funding

RBL LLC, which supports commercialization for ventures formed at the Rice University Biotech Launch Pad, has secured an investment from Houston-based Modi Ventures.

Additionally, RBL announced that it has named Sahir Ali, founder and general partner of Modi Ventures, to its board of directors.

Modi Ventures invests in biotech companies that are working to advance diagnostics, engineered therapeutics and AI-driven drug discovery. The firm has $134 million under management after closing an oversubscribed round this summer.

RBL launched in 2024 and is based out of Houston’s Texas Medical Center Helix Park. William McKeon, president and CEO of the TMC, previously called the launch of RBL a “critical step forward” for Houston’s life sciences ecosystem.

“RBL is dedicated to building companies focused on pioneering and intelligent bioelectronic therapeutics,” Ali said in a LinkedIn post. “This partnership strengthens the Houston biotech ecosystem and accelerates the transition of groundbreaking lab discoveries into impactful therapies.”

Ali will join board members like managing partner Paul Wotton, Rice bioengineering professor Omid Veiseh, scientist and partner at KdT Ventures Rima Chakrabarti, Rice alum John Jaggers, CEO of Arbor Biotechnologies Devyn Smith, and veteran executive in the life sciences sector James Watson.

Ali has led transformative work and built companies across AI, cloud computing and precision medicine. Ali also serves on the board of directors of the Drug Information Association, which helps to collaborate in drug, device and diagnostics developments.

“This investment by Modi Ventures will be instrumental to RBL’s growth as it reinforces confidence in our venture creation model and accelerates our ability to develop successful biotech startups,” Wotton said in the announcement. "Sahir’s addition to the board will also amplify this collaboration with Modi. His strategic counsel and deep understanding of field-defining technologies will be invaluable as we continue to grow and deliver on our mission.”