On our ‘Engaging People, Powering Companies’ podcast last week,

Amrit delved into a subject that again, just like our last topic (The Post Office Scandal), we would not even be talking about in an ideal world. That is, the deep level of poverty that 6 million people are currently living in. As leaders of organisations, we have to ask, what is our role, our responsibilities, and how do we support without overstepping the mark when it comes to caring for the wellbeing of employees living in poverty? This is not a topic that has easy answers, but it is one that is reality for many people, and that deserves airtime and consideration.

The prompt for this came from one of Amrit’s leadership development sessions where he was talking about how as leaders, we need to look after ourselves to be our best, so we can best serve others. We often talk about all that we know through science, that allows us to be at our best physically and mentally, including fuelling ourselves in the right way. It prompted a leader in the room to share that he notices towards the end of the month, the performance of some employee’s dips, because he knows they have run out of money, meaning they don’t have enough money to feed themselves. They simply do not have the funds to fuel themselves, let alone it being in the right way.

In the recent report by the Joseph Rowntree Foundation ‘UK Poverty 2024, The essential guide to understanding poverty in the UK’ it states:

• Over the past 20 years, very deep poverty has risen. Six million people were in this position which is one and half million more than 20 years ago.
• Four million people experienced destitution in 2022. This is a 148% increase over the last five years. This includes one million children which is three times as many as in 2017.

The report states that this is ‘social failure at scale – a failure we pay for twice over’. Firstly, poverty means people are facing unavoidable hardship which strips them of their dignity, damages relationships, and impacts on their physical and mental health and wellbeing. Secondly it piles the pressure on already stretched public services, keeps people off work through poor physical and mental health, creates huge attainment gaps at school, and the report says ‘poverty becomes the enemy of opportunity: talent and potential are wasted in its wake’. It is a truly devastating place for people to find themselves.

Households are considered to be below the UK poverty line if their income is under sixty percent of the median household income, after housing costs for that year. People classed in very deep poverty would need an extra £12,800 per year to get them to the poverty line according to this report. £12,800. Obviously, the answer can’t be that employers just double salaries, and even if they could, that is far too simplistic a solution. It is obviously a deep-rooted issue within our society at large, however employers must be able to do something. Some suggestions within the report that employers could be conscious of, and proactive with:

• Raising the basic level of workplace rights and protections, including expanding rights to flexible working, alongside improving financial protection if people lose their job or cannot work for a period.

• Protecting time for families and for caring around working life, while building up and strengthening the infrastructure of care services that families can rely on.

We spend energy, time and money thinking of the best ways to engage with our employees in order to drive connection, belonging, engagement levels etc, and many have reward and recognition programmes in place to help drive a commitment to wanting to perform well. All good, but what if a staff member is starving? Or their kids are starving? How will they be able to think of anything other than those basic needs that are unmet?

What is our role as employers in this situation? ACAS states that ‘Employers have a 'duty of care'. This means they must do all they reasonably can to support their employees' health, safety and wellbeing’. Amrit shared examples of schools making sure that children had the opportunity to eat breakfast before exams, helping make sure they were fuelled and able to give it their best.

He also shared that in Japan it is common for employees to exercise in the mornings together. For almost a century the Japanese government has broadcast Radio Taiso, an exercise routine whereby workers exercise together. They have also been said to weigh employees and measure their waistlines. Supportive or draconian, you decide. For me this is overstepping the line, but is there a healthy, supportive middle ground where we can step in to truly care for the wellbeing of our people?

As I said above, there are no hard and fast rules or answers to this. But we do have a responsibility towards our people and a duty of care. Maybe firstly, like the leader in Amrit’s session, it is to care enough to notice. Can we understand what is going on and for whom? Do you know the individuals in your teams and what it is they might be struggling with or needing? Are we equipping ourselves and others in leadership roles to have meaningful caring conversations, helping people feel seen and heard?

Are we considering our people when we look at cost saving measures, making sure that we don’t cut things that some people may have come to rely on? Or when we are looking at reward programmes, can we find things that actually help and add value to people’s lives rather than being perhaps fun and gimmicky. If it is going to cost money, can it really be of value and not just look good? All things to ponder.

In the meantime, let’s keep our eyes peeled for ways we can help those around us. I am fortunate, I know that. I am about to clear my cupboards out and take things to the local food bank before I find them out of date and in need of chucking. I also want to clue myself up on what is available in terms of support, so that I can sign post if ever there is a need. I guess if we can all take some personal responsibility for making the smallest difference, it helps. More than all of this though, what I know for sure is that people are struggling, and when they are struggling, to feel that they are seen and acknowledged, goes an awfully long way.

Listen to the podcast here.