The cost of living crisis is affecting many businesses, in various ways. We know that this is an uncertain time for many and we are here to support you through the latest guidance to tackle the rising costs.
What is causing the cost of living crisis?
When we look at the challenges businesses face, it’s important to consider what is causing the rising costs and what practical changes businesses could implement to save costs.
The rising costs are being driven by several factors, including:
- Energy – High energy businesses such as manufacturing and hospitality are facing huge costs this winter with the rise in energy prices.
- Inflation – A rise in the cost of materials and business services which raises business outgoings. Inflation also creates pressure as consumers also face rising costs and therefore seek higher salaries from their employers to be able to afford their lifestyles.
- Supply chains – the cost of transportation and shipping, including importing and exporting goods, has increased across the board. Costs like fuel prices and procuring shipping containers have soared and are having a real impact on businesses.
These factors may feel impossible to cope with, but there are practical things businesses can do which might help. To read more about the helpful tips for businesses, click here.
To read more about the Energy Bill Relief Scheme, click here.
How can I support my employees?
- Ensure you are paying people fairly. It is a UK-wide recommendation that businesses pay the ‘Living Wage’. 93% of Living Wage businesses have benefitted since accrediting. Read more about Living Wage here.
- Increase and promote any financial support available to staff. Use your staff newsletters or employee portals to share practical advice on tackling the cost of living crisis. The South Yorkshire Mayoral Combined Authority website has the latest local and national support for households. Read the advice here.
- Address challenges for employees. If any of your employees are carers, or have childcare commitments, they may need extra support during this time.
One-to-one support from the Growth Hub
During this uncertain time, we know many businesses are facing challenges such as supply chain, cash-flow forecasting and staffing issues. If you would like guidance through any of this, our team of advisors are here to help. You could be just one phone call away from resolving some of the challenges that are worrying you.
Call the Growth Hub now to speak to a business advisor.
03330 00 00 39