Inflation rates worldwide have risen in 2022, skyrocketing to even higher than pre-pandemic levels. The Eurozone hit a record high of 8.9% this July, while the US reached 8.6% in May, prompting the inflation problem to be the number one concern for American citizens.
The current climate of inflation is a cause for worry not just for consumer and consumer goods prices but also for employers. It is not uncommon for employees to demand higher wages during times of inflation, which can further strain your business and compound struggles.
Fortunately, a relatively simple solution may alleviate some of the stress of inflation and keep your employees both satisfied and productive. A recent study has shown that remote jobs and hybrid schedules can reduce wage-growth demands, reduce costs, and create a more positive work environment for employees.
This article outlines how remote work can ease your inflation worries, updates inflation rates for 2022, and shows you a worldwide practical and effective solution for hiring.
Inflation in 2022
When planning to expand overseas, you must be able to assess both opportunities and risks in the new market. To help you make the right expansion choices, we’ve listed some countries with high and low inflation rates for 2022.
High Inflation Rates
▫ Turkey’s inflation rate was at 78.6% in June and was expected to rise to 81% by the end of July. Its inflation rate is one of the highest in the world, exacerbated by the economic stress of the Ukraine conflict.
▫ The sudden resignation on July 2 of Argentina’s economic minister has increased the country’s woes. Inflation has been at 64% for the past 12 months and is predicted to rise to 70%.
▫ In June, the UK reached a record high of 9.4% inflation, and employee wages are now also on the decline.
▫ At 10.8%, Spain’s inflation rate is the highest since 1984. The Spanish economy and fuel prices have been impacted by the conflict in Ukraine and the past two years of pandemic measures.
Low Inflation Rates
▫ In comparison to the drastic increase of other countries, Japan’s inflation has only risen to 2.5%.
▫ China’s inflation rate rose to 2.5% in June, a rise but not particularly significant yet.
▫ Australia’s annual inflation rate is currently at 6.1%, its highest since 2001 but still relatively low compared to other major economies.
How Does Remote Work Fight Inflation?
A survey conducted across a wide selection of US companies showed that in the past 12 months, 38% of firms have been implementing work-from-home options to manage wage-growth demands. Another 41% said they would likely take that action in the coming year.
Because of modern improvements in technology, remote work is now possible for any industry, far beyond the old ideas of simple data entry. There are several different ways that remote work is beneficial for both employers and employees.
· Remote Work Reduces Wage-Growth Pressures
In practice, this may happen in several ways. For example, workers are more willing to receive lower salaries or raises to benefit from working from a home office. Workers are also more likely to apply for jobs with smaller wages but with the option to work from home.
· Remote Work Is More Labor-Diverse
Studies also show that remote work allows many companies to utilize their part-time workers better or employ independent contractors and leased employees. New hires can also be found from a larger global pool, using coworking spaces to provide an office environment for even the most remote employees.
Remote work also created more job opportunities for physically disabled employees or workers unable to leave home.
· Remote Work is Appealing to Employees
Around 60% of job seekers prefer to work from home for a variety of reasons. The benefits of work from home jobs include saving costs on transportation, schedule flexibility, no relocation costs, and more time with their families.
A hybrid work schedule where several days a week are work-from-home is an attractive option to employees across industries.
This positive work environment also decreases employees’ stress, improving their productivity and the customer service experience.
· Remote Work is More Labor-Efficient
When working remotely, staff save commuting time or time lost on breaks. An office can also be full of distractions, meaning employees working remotely are more likely to stay focused on the task.
Modern technology allows remote workers to make the most of new efficiency boosting tools like virtual assistants, social media, and scheduling platforms. While maintaining efficiency in a remote team based on a purely digital or hybrid work model might have been difficult before, now it is relatively simple.
Remote work also means remote interviews as part of the job search process, which can save on recruitment expenses.
Hire Globally with INS Global
With the rise in inflation rates in countries worldwide, many businesses are struggling to retain their staff and continue to reach company goals without heavy losses.
Shifts in global economies can also impede international expansion plans. You may quickly find yourself wondering if you can still make a transition smoothly and successfully.
That’s where having the knowledge and expertise of a partner like INS Global can be invaluable. We’ve been helping businesses for over 15 years, we’re familiar with the changes and fluctuations of global markets, and we have time-tested methods and innovative strategies to keep your business strong and profitable in an unstable global climate.
Our recruitment and hiring team can counsel you on the best ways to find talented workers worldwide. Our legal team can ensure that you are legally compliant with local business practices. Through our PEO and global EOR, we can also help you hire independent contractors, part-time workers, or full-time employees from anywhere in the world.
Contact us today to find out how we can help you with all your global expansion needs.