Almost all employers surveyed by intermediary Partners& think the financial difficulties currently being experienced by their employees will increase in 2023.
The survey of 169 senior HR, finance, and C-suite professionals found 97% of employers now expect the numbers of their employees experiencing financial difficulties to increase in next year, and more than two thirds of employers (67%) revealed they were actively aware of employees already struggling with their personal finances.
The vast majority of employers (90%) also expected at least some of their workers to be in fuel poverty when the next increase in domestic fuel prices takes hold.
Inflation and the cost-of-living crisis (31%) is expected to remain the single biggest financial challenge for employees in 2023.
But while almost two thirds (62%) of employers suggested that the combined impact of both soaring inflation and high interest rates posed the biggest issue for workers, 6% considered rising interest rates as the single biggest financial challenge for their employees and their household finances into next year.
Steve Herbert, wellbeing and benefits director at Partners&, (pictured) said it was clear that employers expected 2023 to be a financially challenging one for many or most of their employees.
“Some organisations remain financially strong, and these employers may be able to reward their workers with healthy – possibly even inflation matching – pay awards or one-off cost-of-living payments,” he said.
“Yet many others will struggle to make such payments during a potentially lengthy recession, and will need to find other ways to support their workers.
“Partners& would strongly encourage all employers to offer financial wellbeing support to their workforce, to help employees better manage their finances throughout this difficult period and beyond.”
