Will Tax rises and rising energy costs give companies the opportunity to positively engage their people?

It was a fair question raised earlier this week. Many have not understood just how their finances will be challenged in April with the double hit of rising in N.I at 1.25% and energy costs which are expected to almost double household energy bills. Will this pressure see many either seek a return to offices, with all the benefits and services offered, or seek new positions?

There is certainly an opportunity for companies to show empathy and support for their people with extra investment in their own site services which can bring some respite to their people. Of course, the counter argument is that many companies have no plans to invest and this will, of course, be true but equally there are many who understand that in order to win back the hearts and engagement, food service may well sit right at the heart; and if this improves productivity then it is investment which is worthwhile.

There is a shift in thinking which is beginning to happen as many venues, hotels and businesses now are beginning to develop plans for investment so that they can become a destination where audiences want to be. With the increase in cost, the battle for every pound will become that much more intense. The average spend per person in hotels and restaurants across the country is £52 per week. For those with salaries between £40 to £80k, costs are likely to increase by £26-£34 per week. It does tell its own story. Food inflation is being equated to an extra £15 per week. It is little surprise that many are calling this the “year of the squeeze”

Of course, commuting costs may have decreased but these costs too are rising in April so how will companies respond?

It is a challenge and it is also an opportunity. As noted, there are many focused on cost; others who understand that real investment in supporting people can retain more people, improve productivity and be the basis of a more engaging culture. It will be fascinating to see which companies follow which road. The main cities will return to strength in time, even if it is with new audiences. The question is how all this will be impact on the political, social and city landscapes. It is to be seen.