Wagefit Can Build Inflation Resilience

Cost and prices of almost everything are up by incredible percentages and where prices have stayed the same there has been shrinkflation to contend with.

Compared to Jan 2024, Feb 2024 annual inflation rate rose to 31.70; food inflation also increased to 37.92%!

What on earth is going on?

Welcome to Galloping Inflation or better put Inflation on Steroids.

Far many more households and consumers are feeling the excess strain on their finances in ways that have not been felt before in a very long while. We outlined some ways one could try to navigate this period however there is no one-size-fits-all solution here at the moment. It's a case of every single suggestion helps that bit more and employers have it within their control to provide that extra help.

Whilst the Federal Government works through taming the galloping inflation beast.

A question burning through your mind is: What additional help can an employer offer their staff during this inflationary period?

Answer: Sign-up and offer Wagefit to your employees. Wagefit, an Earned Wage Access (EWA) provider, won't increase wages as only an employer can increase employee wages, for example, as a result of a promotion, applying any government (or non-government) wage awards or applying any increases to minimum wage post April 2024; however Wagefit will do the following:

1. Immediate access to earned unpaid wages - Access to a portion of earned unpaid wages through Wagefit means an employees ability to promptly respond to price fluctuations. This quick and flexible access can make a world of difference when prices are rising due to inflation yet urgent needs still need to be catered for.

2. Budgeting - Wagefit empowers workers to prioritise essential needs, track & adjust spending and manage their finances proactively. During an inflation you have to be strategic in how and where you deploy your earned money.

3. Debt dependency avoidance - During an inflation the need to access cash quickly can result in taking out high interest short-term loans. Wagefit provides a much cheaper, ethical and controllable alternative for employees to alleviate financial stress without the associated high interest (%) compounding loan debt, late fees or overdraft charges.

4. Financial stress alleviation - Financial stress typically increases during an inflation. The knowledge that an employee has immediate access to a portion of their earned unpaid wages, through Wagefit, can significantly improve their overall wellbeing and mental health by reducing the burden associated with making ends meet.

5. Employee satisfaction & retention - Employers will need their employees to propel them forward when macroeconomic factors improve and inflation subsides. Offering Wagefit to your employees indicates that you are with them in trying to alleviate their financial challenges; employees would appreciate and won't forget this gesture.

6. It's a worthy employee benefit - Pension, Life Insurance, HMO, Parental Leave, Transport Allowance, Holiday Pay (paid time off), Learning & Development are just some of the benefits employers offer their employees nowadays. Wagefit should be thought of no differently; earned wage access is akin to a benefit to access a portion of already earned money if needed. Employee benefits helps foster a positive work culture, retain talent, and increase employee morale and productivity. Besides Wagefit does not cost an employer a kobo to implement or offer to their employees; default free for employers with no affect on working capital.

In conclusion.

Wagefit provides liquidity at the point of need, reduces stress and enhances financial resilience during inflation.

Of course this inflationary period is a significant challenge for Nigeria's population and Wagefit alone won't solve everything however employers need to consider their responsibilities and look to support their employees financial wellness in other ways through a broad package of measures which includes EWA options. It’s an invaluable resource for both employees and employers during these times.

Get in touch to find out how Wagefit can build inflation resilience and tolerance for your staff.