How cost of living crisis impacts workforce productivity

As the cost of living crisis in Nigeria continues to escalate, organizations are grappling with the challenge of managing their workforce productivity amidst the evolving economic landscape. Emmanuel Okeleji, the CEO and Co-founder of SeamlessHR, shed light on critical strategies to navigate the current economic climate in a recent interview with CNBC Africa. The Nigerian workforce has been hit hard by a series of economic shocks in the past nine months, including inflation rates soaring to over 33 percent, surging energy costs, and the removal of petrol subsidies. These challenges have put immense pressure on employees, particularly those at the base of the pyramid who lack the necessary shock absorbers to withstand the impact of these shocks. Emmanuel Okeleji highlighted the significant implications of the current economic climate on businesses from an HR standpoint. He emphasized that the pain is most acute for workers at the lower end of the spectrum who play essential roles in various sectors of the economy. From factory workers to night watchmen, the impact of the crisis has been devastating, with reports of individuals resorting to buying yam slices due to skyrocketing food prices. Managing workforce productivity in such a challenging environment poses a significant dilemma for employers. The surge in interest rates and operating costs has forced many companies to declare losses and even shut down operations. To combat this downward trend, Okeleji stressed the importance of boosting productivity on both the employer and employee fronts. Employers are urged to explore innovative strategies to enhance productivity and improve their capacity to earn. Government initiatives aimed at stabilizing the economy, such as forex interventions, offer a glimmer of hope for businesses. Okeleji also pointed out the need for organizations to implement cost of living adjustments to support their workforce during these tough times. Implementing targeted salary increases and financial interventions can help alleviate the financial burden on employees. Companies have introduced measures like transportation subsidies and facilitating access to credit to cushion the impact of the economic crisis. Okeleji highlighted SeamlessHR's initiative with the Bill and Melinda Gates Foundation to provide end-wage access to blue-collar workers in Nigeria and Kenya, enabling them to access their salaries in advance. Technology plays a crucial role in enabling organizations to navigate the cost of living crisis effectively. Tools like end-wage access and digital credit solutions can provide employees with greater financial flexibility and help improve their overall well-being. By leveraging these innovative approaches, organizations can retain and attract top talent while enhancing workforce productivity in the face of economic challenges. In conclusion, Emmanuel Okeleji's insights shed light on the critical strategies that organizations in Nigeria can adopt to overcome the hurdles posed by the cost of living crisis. By prioritizing employee well-being, implementing targeted interventions, and leveraging technology-driven solutions, businesses can weather the storm and ensure sustainable growth in the midst of economic uncertainties.