The Cost of Working: Can we all afford to work?
Do we often overlook the day-to-day cost of working – of simply showing up to work when we consider our HR management and strategy?
In a world where equity is at the forefront of the working landscape, we should be considering socioeconomic inclusion to ensure all staff have equal access to work with a level playing field for all. These costs can be anything from day-to-day travel costs to office attire, to the cost of a sandwich and coffee at lunch! Apart from accessibility concerns, there could be additional repercussions for individuals facing challenges in covering these daily expenses – impacting not just their level of engagement, but more significantly, the overall wellbeing of employees.
The Day-to-day Cost of Working
The costs that an employee may encounter on a daily basis can be varied but plentiful, with some of the costs causing more of a block to progression than others. There are the costs of getting through each day which enable one to be present and included at work: travel costs and parking costs, lunch with co-workers, a coffee from the office canteen and clothing. The inability to afford these things is likely to have a detrimental effect on the employee’s wellbeing as the cost of attending work will not be the only cost they are struggling with.
Many people will also have the day-to-day cost of dependents. The cost of childcare, for example, is a particularly prominent cost for many workers across the UK. Some opt to withdraw from work altogether, rather than pay childcare costs as this is the more viable option financially. Some employees may also have adult dependents, elderly parents, or people in their lives that require specialist care. These are things that require budgeting for, and if these financial needs cannot be met, this will be an enormous push factor for the employee to look for alternative or even additional work.
The Cost of Personal and Professional Development
The cost of professional development, and the disparities between those who can and can’t afford to invest money in their own professional careers is also an issue. If an employee can not foresee a professional future due to economic barriers it can create a lack of drive. These costs can come in the form of professional memberships or subscriptions. Being a member of professional institution such as the CIPD gives an employee access to a vast amount of training and resources. These professional bodies also provide the opportunity for networking and building industry connections. Access to these opportunities is behind a pay wall, and this can also act as an economic barrier for professional development. As an employer, we can look at covering the cost of various memberships in an effort to facilitate professional development for those who may not have the financial capacity to do this for themselves.
There are also studying costs to consider with economic equity. Studying for a qualification, such as a bachelor’s degree, in the modern day is more accessible than it has ever been in every single way except for financially. There are various options to learn remotely, with flexible learning times, various methods of assessments, different types of qualifications to suit the needs of anyone looking to develop their credentials within their field. However, the cost of studying has been increasing year on year for over a decade. Prices rose faster than increases in student loans in the 2022 to 2023 academic year, with 58% of students claiming that the student loans do not cover their living costs – according to the Office of National Statistics (2023).
What do These Barriers Mean for the Future of the UK workforce?
These economic barriers have implications and knock-on effects for the employee’s wellbeing, the organisation’s ability to get the most out of their workforce and the working landscape of the UK as a whole. Many of the aforementioned day-to-day costs of working are leading to a resistance for employees to return to the office full time. Those who converted to remote or hybrid working as a result of COVID have experienced the financial and practical benefits of working from home and are either reluctant to return to the office or are unable to return to the office due to changes in financial circumstances. Despite benefits to being in the office such as learning opportunity, and ease of communication within teams, these are outweighed by the vast financial benefits from not travelling and not having to pay for day-to-day costs associated with the office.
As employers, we can look at supporting members of our organisation struggling with costs through (SHRM, 2023):
- Salary increases, one-off payments and loans
- Salary sacrifice arrangements
- Discounts, subsidies and financial advice
- Flexible work and well-being support
- Assisting employees
Looking at all the financial barriers in the UK workplace, it is clear that when individuals struggle to afford transportation, work attire, meals, and other essential expenses associated with employment, it will obstruct their ability to develop professionally. This can perpetuate cycles of poverty by limiting access to higher-paying jobs or professional development opportunities. As a result, individuals from lower-income backgrounds may face barriers to climbing the social ladder, widening the gap between socioeconomic classes and hindering overall social mobility within the UK workforce. Addressing these financial challenges through policies that promote fair wages, affordable childcare, and accessible education and training opportunities is crucial for fostering a more equitable and inclusive society.
https://www.shrm.org/topics-tools/news/uk-how-employers-can-help-staff-with-financial-difficulties