Partners& has revealed it is rolling out a range of financial wellbeing tools over the coming months as nine in 10 employers claim they expect an increase in the number of their employees experiencing financial difficulties this winter.
In conjunction with financial advice partner Integrity365, Partners& revealed the financial wellbeing support tools will be rolled out next month along with a planned package of additional tools available from early 2023. The firm revealed the services will aim to equip employees with discount options on everyday spending, as well as providing the basic knowledge and understanding to enable “sensible and pragmatic” financial decisions amid the cost-of-living crisis.
The launch coincided with a survey carried out by Partners& at an event last week of more than 160 senior HR, finance, payroll, and C-suite professionals.
The research found that nine in every 10 employers expected either a small (38%) or significant (52%) increase in the number of their employees experiencing financial difficulties this winter. It also revealed that almost two thirds (65%) of organisations are already aware of employees struggling financially.
Millions of workers are struggling financially
Steve Herbert, wellbeing and benefits director at Partners&, (pictured) said: “Despite the government’s announcement of significant support for household energy costs last week – which should keep most household energy bills at around their current levels – it is clear that millions of working people are already struggling financially. Indeed, it is likely that single-income households earning the National Minimum Wage, National Living Wage, or even the voluntary Real Living Wage may already fall within the widely accepted definition of fuel poverty.
“Fuel poverty is only part of the picture though. Inflation on everyday essentials is also very high and currently sits at almost five times the Bank of England target rate of 2%, with increasing interest rates also squeezing household budgets ever tighter. This is primarily a problem for employees and their families, but it is also worth remembering that financially stressed employees are likely to be distracted and working at less than their maximum productivity. So, by extension, this is also a problem for employers too.”
Around a third of employers revealed they have already made (11%), agreed to make (3%) or are considering making (19%) a payment to support their workers through the crisis. Though one in 4 (25%) said that their employer could not currently afford to make a support payment.
But Herbert added that while the appeal of a one-off payment is obvious, the reality is that the inflation crisis might persist not just through this winter – but perhaps as far as the middle of the decade.
“This raises the spectre of these apparent “one-off” payments having to be repeated – perhaps several times,” he continued. “I do wonder how many organisations are financially robust enough to sustain such an approach, particularly if the Bank of England predictions of a year-long recession prove to be correct? Partners& would therefore encourage employers to build a package of measures that also includes other elements to secure financial wellbeing for employees.”
Financial education services
Partners& research also suggests that around a quarter (25%) of employers already offer some financial education services, with around three in 10 (31%) actively considering the introduction of such services this autumn.
Herbert concluded: “Most employees in the UK have never benefited from any formal education around money matters, and it is also the case that very few workers are old enough to remember the last time inflation was at the levels being seen today. It follows that most UK employees have no practical experience as to how to respond to this particular set of economic challenges.
“So, some basic – but informative – sessions around money management can only be beneficial, and we will therefore be launching our Four steps to financial health offering in October. Partners& would encourage many more employers to embrace this approach as part of their employee support measures in the difficult months and perhaps years ahead.”