Company distributes more than $300 million to employees to help them with inflation

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  • Banxico expects headline inflation in Mexico to reach 8.1 percent in the fourth quarter of 2022 and core inflation, 7.6 percent.

  • Despite the global crisis, Sixt achieved record profits at the end of the first half of the year, with a 59.4 percent increase.

  • Now, the international will use that money to counteract the effects of inflation in the pockets of all the employees it registers.

With the loss of purchasing power and critical levels of inflation, which have even reached their maximum point in 22 years, it is obvious that a company cannot offer a salary adjustment to its staff, but there is a need to resort to alternative measures to distinguish itself during the crisis and benefit the employees who make its operation and permanence in the market possible.

The analytical solutions agency wtw highlights intangible incentives as the most recommendable when it comes to preserving human talent, especially in a scenario in which even Banxico has increased its inflation forecast for Mexico to 8.1 percent until the fourth quarter of 2022.

For this reason, companies can offer the workforce financial well-being programs where they are helped to plan their expenses and maximize their income, in addition to providing, to the extent of their possibilities, benefits superior to those of the Law that are focused on facilitating and increase their quality of life through goods or services to support the coverage of some basic needs, such as food, transportation or health.

Company grants millionaire aid to its employees for inflation

In times of inflation, the workers’ pockets are the most impacted, which is why some companies and brands take the initiative to generate support programs that are reflected in their savings and family well-being.

An example of this was Sixt, car rental company that has decided to combat the global economic crisis hand in hand with its workers, to whom it distributed 15 million euros (about 30 million 110 thousand 4940 Mexican pesos) in special bonuses.

And it is that the first half of the year the German company had good news, with results achieved and record revenues and a consolidated increase of 59.4 percent, compared to last year. The results of the first half of the year are related to the international business that it offers, where, for example, Europe represents 40.6 percent of all its income, while the United States and Germany became the second collecting force, with 29.8 and 29.6 percent respectively.

The measure consists of rewarding his entire team with a special payment of one thousand 700 euros each (around 34 thousand 135 pesos), something that has characterized them, because in June and October 2021, given the financial uncertainty generated by the Covid-19 pandemic, the company also gave its workforce 2 special bonuses.

The company announced that, with the measure, they plan to expand their workforce, with more than a thousand new employees.

“There is a fundamental part behind this success and it is not just the numbers, it is also each and every one of our employees. That’s why We have opened 70 new offices, which generate employment, and increased our fleet by 25 percent compared to 2021, despite the fleet crisis that we have suffered. We have also continued to invest heavily in IT to maintain our position as a leading company in technological innovation in the mobility sector, but now we also we want to invest in one of our most important values, our more than 8 thousand employeess,” said Alexander Sixt, Co-CEO of international premium mobility provider Sixt.

Like this, many companies are beginning to plan actions to help their workers and reward the effort they make every day, as happened in July this year when the owner of a marketing agency in Australia was crowned “the best boss in the world” for giving their employees their first “work vacations” and taking them to work remotely in Bali, all paid, this also as part of a celebration for obtaining better results than expected.

Both examples lead you to think about the business path that should be taken locally, because in Mexico, although the minimum wage has increased since the beginning of 2022, inflation threatens to decompensate their quality of life with high costs in basket products. and an increase in the cost of their basic activities, such as mobility.

Obviously, a company cannot control the consequences of inflation, but it can take measures so that its workers do not suffer the impact of it so much, since those actions will also be rewarded with time, effort, work and loyalty on the part of their payroll.

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