Inflation Anxiety: The Facts
Inflation is real, and it’s affecting people and employers across the nation. Prices are currently rising steadily each month and are expected to continue doing so in the wake of tariff impacts. Additionally, rent prices are consistently increasing, with housing costs claiming over 50% of total inflation; the average rent for an apartment grew by roughly 29% between 2020 and 2025. These price hikes can be devastating, especially for healthcare workers with dependents, or those who already live paycheck to paycheck.
But healthcare organizations are also suffering due to inflation, and may not be able to support their staff to the extent that they would prefer. Read on to learn more about the effects of inflation and different ways to support healthcare staff.
How Inflation Affects Employers
Yes, it’s important to support staff who face inflation anxiety, but inflation affects employers, too. According to McKinsey, healthcare providers could receive a 1.2 to 2.8 percentage point decline in profit margin due to inflation. In an ideal situation, increased government subsidies or higher reimbursement rates would help healthcare organizations make up the difference. But until that happens, providers may be struggling. These solutions, while not prescriptions, are ideas to consider while navigating this difficult financial time.
Effects of Inflation Anxiety on Healthcare Workers
Inflation can make it hard for healthcare workers to access their basic needs: food, housing, and transportation. But it can also cause significant harm to mental health. According to a recent CNBC poll, 73% of Americans are under financial stress, citing inflation as its main cause. Money anxiety can affect both mental and physical health, and exacerbate the burnout symptoms already common in healthcare.
How to Combat Inflation Anxiety
Raise Salaries
Raising salaries is much easier said than done, but it’s still worth noting as the most direct way to alleviate financial anxiety. Even with yearly raises, the effects of inflation mean that over 40% of American workers are still taking a pay cut. However, inflation is hurting employers too. It’s possible, even likely, that higher salaries aren’t possible right now. If this is the case for your organization, there are other things you can do to support your staff.
Flexible Benefits
Flexible benefits allow employees to choose what benefit package works best for them. This allows them to adjust their finances and benefits when they’re under money stress, reducing inflation anxiety. This is a concrete way to help your staff.
Financial Coaching / Planning
While not a replacement for material assistance, access to financial coaching can help your employees plan for their future. Consider pairing this with career coaching, to allow your staff to create a holistic plan for the future. Goals and planning can help staff reduce their inflation anxiety. This is a popular solution across industries, with 43% of employers saying that they offer personalized financial counseling, coaching, or planning. Some 401K platforms offer financial planning with their other services.
Be Flexible
Empathy and understanding are always important, but especially so when your employees are experiencing inflation anxiety. Be prepared to support your employees, particularly those who are parents or caregivers. Make sure your employees know that the door to HR is always open, and that you are there to offer them support. Listening to staff goes a long way.
Be Transparent
Discussing financial matters is still taboo in some work settings. Unfortunately, this stigma can make it harder for employees to approach HR when in need. As a first step, acknowledging the recent increased financial pressure can help. Try themed newsletters about financial literacy, workshops, town halls, or more. It’s also helpful to be transparent about your own pain points. Letting workers know what you can or can’t offer can increase understanding between employees and employers. Be flexible with scheduling if possible, and meet your employees where they’re at.
Consider Bonuses
If you don’t have room in your budget to increase salaries, consider offering bonuses. A bonus still has a measurable financial impact, and can really make a difference when your workers are struggling. Incentive bonuses for perfect attendance and employee referrals can be cost-effective ways to go about this. You can even consider bonuses for picking up extra shifts.
Offer Mental Health Support
When finances are tight, it can be easy to deprioritize mental health. Offering flexible benefits can help employees continue to seek mental health support during difficult times. Adding wellness perks and taking the time to clearly inform employees of their mental health options can also make a difference. This can come in the form of offering access to mental health apps, gyms, and other health related businesses, or a flat reimbursement amount for wellness. Better mental health support can also help you improve company culture as a whole.
Better Hiring with Apploi
Use Apploi to streamline your hiring and onboarding process, so you can save money and spend more of your time supporting employees. Interested in learning more about how you can recruit, hire, and onboard healthcare staff quickly? Contact us today for a free demo of our talent management solution.
