My recent conversations with both business owners and their employees illustrate that there isn’t any “ “fat” in either of their budgets for “nice-to-haves”.

Many of us know households are cutting down discretionary spending to combat rising costs, but our new survey reveals it’s no different across the business landscape.

Our online survey conducted in July had 386 respondents who identified themselves as employers.

We asked employers how they are supporting staff with the cost-of-living crisis, and the survey results confirm the sentiments expressed in my recent discussions.

Unable to offer additional support

While 13% of employers are offering further professional development or additional benefits such as health insurance and gym memberships, even more (16%) are simply offering work-from-home flexibility to ease employee struggles.

However, a third (33%) of businesses say they are unable to offer additional support for their employees beyond the base salary package, but the cost of not supporting their staff may far outweigh the pain of the initial investment.

The businesses that we work with often feel no different. We understand that true wellbeing is a balancing act of ensuring a profitable business while nurturing employees to retain their internal knowledge and resources.

No one wants an exodus of trained, experienced employees – that is a far higher cost in the long term.

Often, the company believes the bottom line needs to be improved first before it can consider financial support for its staff. But the truth is that people generally don’t need more money to be supported; often, they just need a better plan for managing the money they already earn.

I find that my financial coaching clients can trim down 10-15% of their spending through identifying and removing inefficiencies – tracking spend, restructuring the mortgage, avoiding taking on debt to service “lifestyle creep” and strategically arranging their bank accounts.

People are often pleasantly surprised to find they can unlock this extra cash flow without a single pay increase – and without dramatically impacting their lifestyle.

While there are ways to improve employee satisfaction without spending up large, many employees are still looking for the golden handout of more money.

Flexible working arrangements might seem like a popular solution, given the 16% offering in our survey results.

However, the time and commuter expense it affords employees is still not enough to ease financial stress if they don’t know what to do with the relief it offers.

Salary bumps or more leave

How can businesses bridge the gap between employees' desire for higher pay, which they believe is necessary to maintain their standard of living, and employers' limited financial resources?

Support doesn’t have to mean salary bumps or more leave.

Many employers overestimate the cost of programmes that equip staff with financial education and underestimate the impact they can have on creating lasting financial stability and security.

Through my role as a financial adviser, I have met many Kiwis who were never taught how to manage their money, not just in knowing how it works, but identifying what triggers impulsivity – the credit card, the short-term loan, the sales and free shipping “deals”.

Once you can see through the glamour of marketing, you regain power over your spending, your finances and your life – because understanding finances shouldn’t be something to feel shame about and it’s time to build literacy into the foundation of our society.

Gone are the days of pay rises being the only way to recognise your employees.

If you’re looking to implement real change in your organisation, start by increasing the financial capability in your team – then watch as staff satisfaction and financial security fall into place around it.

* Shelley Palman is a financial adviser at enable.me.