‘Businesses must better support staff’ – Three CEOs comment on inflation data
Posted by: electime 19th April 2023
Sam Martin, CEO of Peckwater Brands
The ONS has released its latest monthly Consumer Price Index this morning, showing that inflation has fallen to 10.1 per cent. Here, three CEOs of UK SMEs comment on what the data means for British businesses…
Chieu Cao, CEO of Mintago, said: “It’s poignant that today’s inflation data comes right in the middle of Stress Awareness Month. While prices are falling again, we cannot underestimate the huge impact the cost-of-living crisis is having on people’s financial wellbeing and, in turn, their mental health.
“It’s more important than ever that people are given the tools they need to navigate an extremely challenging economic climate. This is best done in the workplace, where not enough support is being provided. Indeed, Mintago’s own survey of over 1,000 UK employees this month has revealed that while 51 per cent of people say their stress has increased notably as a result of the cost-of-living crisis, just 36 per cent benefit from financial wellbeing support through their employer.
“By implementing better financial wellbeing support systems for their employees – whether that’s connecting staff with financial advisers, or giving them more control over their pensions – employers could alleviate much of the financial stress that so many people are facing by simply giving them a clearer image of their financial situation. Yes, inflation might be slowing, but today’s data shows there is no room for complacency; UK businesses should act to support staff as a keen priority.”
Atul Bhakta, CEO of One World Express, said: “Businesses will breathe a slight sigh of relief seeing that inflation is falling once again. But the relief is only very slight. Make no mistake, while millions of UK consumers have suffered at the hands of the cost-of-living crisis, businesses have also been significantly impacted by rising costs over the past 12 months.
“Rising overheads, the need to pay staff more, higher interest rates affecting debt repayments and commercial rents, and diminished customer spending power – all of these factors have combined to create a hugely challenging economic climate for businesses to navigate. We have to hope this is not a false dawn, but the start of a downward spiral for inflation in the months to come.
“Businesses, meanwhile, cannot allow inertia to set in. They cannot wait and hope things will improve around them. Now is the time to be proactive; to seek out ways to reduce costs across their supply chain, or access new markets to expand their customer base. Inflation remains high, so those companies that seek out new opportunities rather than bracing for choppy waters will be well placed to emerge from this period in better health.”
Sam Martin, CEO of Peckwater Brands, Europe’s largest virtual food brands operator, said: “Today’s CPI figures show an encouraging downward trend in inflation, but many business owners will worry that they might not survive this period before things go back to normal. Hospitality businesses in particularly are still at great risk, with foodservice price inflation remaining over 20 per cent.
“The triple threat of high inflation, rising energy costs and staff shortages has seen pubs and restaurants shutting at an alarming rate, with closure rates higher than pandemic-hit 2021. Indeed, a third of UK hospitality businesses are at risk of closure in the next 12 months.
“Hospitality is a vital provider of employment and a major driver for the economy; something needs to be done to help businesses cope with the challenges of energy and food prices. Times are harder than ever for consumers, but I hope communities will come out in support of their local businesses and that most of our nation’s pubs, cafes and restaurants will make it through unscathed.”
