Category Archives: Financial Wellbeing

Financial Wellbeing, News, Training

Punter Southall Aspire urges employers to champion financial wellbeing in Talk Money Week

To tackle employee money concerns and support their financial stability, Punter Southall Aspire is urging companies to prioritise financial wellbeing during Talk Money Week (6-10 Nov).

The theme for this year’s campaign is ‘Do one thing,’ and Steve Butler, CEO of Punter Southall Aspire, is advocating for action.

Talk Money Week, organised by the Money and Pensions Service, highlights that nearly 8 in 10 UK employees bring their money worries into the workplace, impacting their performance.

With 4 in 10 UK adults not feeling confident managing their money, 11.5 million having less than £100 in savings and nearly nine million in serious debt[i] – financial wellbeing and education has never been more important.

To boost financial wellbeing, Punter Southall Aspire has developed a box set of webinars on key areas to support employees at any stage of their life and career.

Steve Butler, CEO of Punter Southall Aspire, said, “During a cost-of-living crisis, investing in financial wellbeing is really important. Offering education and tools to empower people to manage their finances can bring immediate benefits by significantly improving employees’ day-to-day financial circumstances.

“In the spirit of doing ‘just one thing’, employers can offer our financial wellbeing webinars to their staff to help them take action. Taking this single step can make a profound difference in people’s lives and presents an opportunity for employers to demonstrate their care and commitment.”

During ‘Talk Money Week’ Punter Southall Aspire is offering their most popular webinar, Money Matters at a reduced price of £650 +VAT. To sign up, click here.

 

[i] https://www.fincap.org.uk/en/articles/key-statistics-on-uk-financial-capability

Financial Wellbeing

Is There Any Financial Aid Available For Individuals With Multiple Injuries?

Accidents and injuries can happen to anyone, and when they do, they often come with not only physical and emotional challenges but also financial burdens. For individuals who have sustained multiple injuries, the financial strain can be even more overwhelming.

In the United Kingdom, there are several avenues of financial aid available to help individuals cope with the costs associated with multiple injuries. This article explores some of the key sources of financial support and assistance available to those in need.

National Health Service (NHS)

The National Health Service (NHS) is the backbone of healthcare in the UK, providing free medical treatment and care to all residents. If you’ve sustained multiple injuries, the NHS will cover the cost of your medical treatment, from initial emergency care to ongoing rehabilitation and therapy. This can significantly alleviate the financial burden associated with healthcare, as you won’t have to worry about paying for essential medical services.

Disability Benefits

For individuals who have sustained injuries that result in long-term disabilities or reduced mobility, various disability benefits are available through the Department for Work and Pensions (DWP). These benefits include:

  1. Personal Independence Payment (PIP): PIP is designed to help with the extra costs of living with a disability. The amount you receive depends on the level of your disability and how it affects your daily life.
  1. Employment and Support Allowance (ESA): ESA provides financial support to those who are unable to work due to illness or disability. The severity of your injuries and their impact on your ability to work will determine your eligibility.
  1. Attendance Allowance: If you are over 65 and require assistance due to your injuries, you may be eligible for Attendance Allowance, which helps cover the cost of personal care.

Compensation Claims

If your injuries were caused by the negligence of another party, you may be entitled to compensation. Personal injury claims can provide financial aid to cover medical expenses, loss of earnings, rehabilitation costs, and even pain and suffering. 

Because of the complexity of these claims, it’s crucial to consult with a solicitor experienced in personal injury cases to explore your legal options and determine if you have a valid claim. Seeking legal action for a compensation claim can be a complex and challenging process, but it’s often necessary if you’ve suffered injuries or damages due to someone else’s negligence or wrongful actions. 

Here is some advice on how to navigate the legal process for a compensation claim:

Consult with an Experienced Personal Injury Lawyer

The first and most crucial step is to consult with an experienced personal injury lawyer. Choose an attorney who specializes in personal injury law, as they will have the expertise and knowledge necessary to handle your case effectively.

Most personal injury lawyers offer a free initial consultation, during which they can assess the merits of your case and advise you on the best course of action.

Gather Evidence

To build a strong case, gather as much evidence as possible to support your claim. This may include medical records, accident reports, witness statements, photographs of the scene, and any other relevant documentation.

Keep records of all medical bills, expenses related to your injuries, and any lost income or wages due to your condition.

Understand the Statute of Limitations

In the UK, the most common claim in a personal injury case is negligence, and this comes with a time limit of 3 years. This means that the court proceedings must be issued within three years of you being aware of the injury.

If you are outside of this timeframe, then you may not be able to start a claim. There are different rules for when the injured party is under the age of eighteen, but your legal team will be able to explain these and help you through the claims process.

Negotiation and Settlement

In many cases, the responsible party’s insurance company may offer a settlement before going to court. Your lawyer will negotiate on your behalf to secure a fair settlement.

It will, however, be essential to consider the long-term consequences of any settlement offers, as they may include waivers that prevent you from pursuing further legal action.

Litigation

If a fair settlement cannot be reached through negotiation, your lawyer will initiate a lawsuit by filing a complaint. Be prepared for the possibility of going to trial if a settlement is not reached during the litigation process, but your legal team will prepare you for this and represent your interests in court.

Insurance Coverage

If you have private health insurance, it may cover certain medical expenses related to your injuries. Additionally, some insurance policies offer disability benefits or income protection that can provide financial assistance if your injuries prevent you from working.

Charities and Non-Profit Organizations

There are numerous charities and non-profit organizations in the UK that offer financial aid and support to individuals with specific injuries or medical conditions. These organizations often provide grants, equipment, or services that can help alleviate the financial strain. Some examples include the Spinal Injuries Association, Headway (for brain injury survivors), and Limbless Association.

Local Authority Support

Local councils in the UK may offer support services and financial aid to individuals with disabilities or multiple injuries. These services can include home adaptations, transportation assistance, and access to local support groups. Contact your local council to inquire about available resources.

Conclusion

Dealing with multiple injuries can be an arduous and costly journey, but individuals in the UK have several avenues of financial aid and support available to them. From the comprehensive healthcare coverage provided by the NHS to disability benefits, compensation claims, and charitable organizations, there are options to help alleviate the financial burdens associated with injuries.

If you or a loved one are facing the challenges of multiple injuries, it’s essential to explore these resources and seek professional advice to ensure you receive the financial assistance and support you need to regain your health and quality of life. Remember that you don’t have to face this journey alone; help is available to navigate the financial aspects of your recovery.

 

Employee Benefits, Financial Wellbeing, News

Pluxee UK Launches SmartPay: Empowering Employee Financial Wellbeing

Pluxee UK, formally Sodexo Engage, the leading expert in employee engagement, today announces the launch of SmartPay, its latest financial wellbeing solution, to the UK market.

Despite the growing recognition of its significance among employers, financial wellbeing remains a commonly neglected aspect of HR wellbeing strategies. The pressing issues of rising inflation and the cost of living crisis continue to burden the UK workforce.

According to the latest Office for National Statistics (ONS) data, more than half (56%) of adults report that their cost of living has increased compared with a month ago. To offset increasing costs, 47% of adults said they were using less fuel such as gas or electricity in their homes, and more than 4 in 10 (46%) were spending less on food shopping and essentials.

 

Pluxee UK is taking a significant step towards addressing this crucial gap in HR wellbeing strategy with the launch of SmartPay, working to help alleviate money worries for employees, relieving financial pressure while offering peace of mind.

SmartPay presents a smarter way to manage finances, making unexpected home and essential purchases more affordable by spreading the upfront costs over time. This is achieved by offering affordable and manageable salary deductions, ensuring that employees can fulfil their financial responsibilities without turning to expensive high-interest loans or accumulating credit card debt.

SmartPay places a strong emphasis on transparency and control over finances. With an easy-to-use repayment calculator, employees can calculate and plan their repayments, making it easier for them to manage their financial responsibilities. Additionally, Pluxee UK offers a wide selection of eVouchers across tech, wellbeing, and lifestyle to align with individual tastes and needs.

Another key benefit of SmartPay is its flexibility. Employers have the freedom to set their own order limits, payment intervals, and employee repayment terms through convenient net salary deductions, allowing employers to cater to different financial situations.

By providing a practical and effective financial wellbeing tool, SmartPay not only empowers employees to make significant purchases without high-interest debt but also enhances their overall financial management.

 

Graham James, Director at Pluxee UK, says: “SmartPay represents a significant leap forward in prioritising the financial wellbeing of employees. In today’s challenging economic climate, it’s not just a benefit; it’s a lifeline. At Pluxee UK, we believe that by empowering employees with the tools and flexibility to manage their finances, we can alleviate their financial stress, ultimately leading to a happier, more engaged workforce.”

 

By offering SmartPay as part of their Employee Value Proposition, organisations can demonstrate their dedication to supporting the financial wellbeing of their workforce. This, in turn, strengthens their ability to attract top talent and retain their current employees, ultimately creating a happier and healthier workforce.

For more information about SmartPay, please visit www.sodexoengage.com/smartpay/

 

Financial Wellbeing

Common Types of Mortgage Fraud and How to Detect Them

The quest for homeownership is a dream shared by many, but it often involves securing a mortgage, a significant financial commitment that spans decades. But within the realm of mortgage transactions lies an unseen threat: mortgage fraud.

Mortgage fraud poses significant risks to both lenders and borrowers. In this guide, we’ll look at seven prevalent forms of mortgage fraud, offering valuable insights to help you identify them. 

Armed with this knowledge, you can approach your home-buying journey with confidence, safeguarding your investment. However, it’s crucial to emphasize the importance of selecting a trustworthy lender, whether you’re looking to get a reverse mortgage loan or a conventional one.  

Identity Theft

Identity theft ranks among the most common types of mortgage fraud, involving the misuse of personal data like names and credit histories to secure mortgages fraudulently.

It can occur at various stages of the mortgage process. Fraudsters may target your personal information during the application process, such as Social Security numbers and financial details, and apply for a mortgage in your name without your knowledge.  

Identity thieves may use false documentation or falsified information to secure a mortgage on your home and fraudulent loans against it. Once approved, scammers could divert disbursed funds by changing disbursement instructions into their accounts and deprive you of receiving funds that rightfully belong to you.

To protect yourself against identity theft when applying for a mortgage, you must:

  • Work with reputable lenders: As we mentioned earlier, make sure your lender or financial institution has an excellent track record of providing trustworthy lending services.
  • Monitor your accounts: Always remain vigilant in monitoring all of your financial accounts and credit reports.
  • Secure personal information: Safeguard your personal information by not sharing it with unverified parties or over unsecured communication channels. Only provide sensitive information to trusted professionals.
  • Seek legal and financial advice: Consult with an attorney or financial advisor who specializes in mortgages or reverse mortgages to ensure you fully understand the terms and implications of the loan.

Income Fraud

Income fraud is a deceptive practice that frequently surfaces in the realm of mortgage fraud. Risks of income fraud climbed 27.3% and property fraud rose 22.6%, posting the largest year-over-year increase in the second quarter of 2022.

This form of deceit involves borrowers misrepresenting their income to qualify for a mortgage loan. Often, individuals may exaggerate their earnings or furnish falsified documents to persuade lenders to approve their mortgage applications.

Detecting income fraud requires scrutiny of financial documents, tax returns, and pay stubs to identify any inconsistencies or discrepancies. It’s essential to remain cautious when dealing with lenders who pressure you to inflate your income and to always verify the accuracy of your income information. By understanding the nuances of income fraud and knowing how to spot the red flags, borrowers can protect themselves from falling victim to this detrimental form of mortgage fraud.

Appraisal Fraud

Appraisal fraud is a common type of mortgage fraud that revolves around manipulating the property’s valuation to secure a larger loan or more favorable terms. Perpetrators may intentionally misrepresent a property’s value, often by collaborating with unscrupulous appraisers who inflate the appraisal amount. To detect appraisal fraud, borrowers and buyers need to conduct market research, comparing the appraised value with recent sales of similar properties in the area.

Additionally, a thorough inspection of the property’s condition and features can reveal inconsistencies with the appraiser’s report. Being vigilant for unusually high appraisals or values that don’t align with market trends is essential for safeguarding your investment in the mortgage process.

Straw Buyer Fraud

Straw buyer fraud entails employing a third party to acquire a property on behalf of the actual buyer, frequently in an attempt to secure a loan that the legitimate buyer wouldn’t otherwise qualify for. Detecting straw buyer fraud requires a multifaceted approach. First, scrutinize the buyer’s motives by delving into their financial history and discerning the reasons behind their property acquisition. Second, validate the buyer’s identity and financial capacity to ensure transparency.

Finally, remain vigilant for red flags such as buyers who have no intentions of residing in the property or transactions that appear rushed or shrouded in secrecy. By employing these precautions, you can safeguard yourself against the potential pitfalls of straw buyer fraud in the real estate landscape.

Flipping Fraud

Flipping fraud occurs when a property is bought and sold multiple times in a short period of time, each time at an inflated price. This artificially inflates property values. To detect flipping fraud, you need to verify:

  • Sales history: Investigate the property’s sales history and any recent renovations or improvements.
  • Financial details: Examine the financing details and price increases between sales.
  • Frequent transfers: Be wary if the property has changed hands frequently within a short period of time.

Final Words

Mortgage fraud poses a grave threat to homeownership dreams, potentially leading to financial losses, legal battles, and damaged credit ratings. Familiarizing yourself with these common forms of mortgage fraud and learning how to detect them early may help you protect yourself against becoming a victim.

Always work with reputable lenders and professionals, and don’t hesitate to seek legal advice when needed. With knowledge as your shield, you can navigate the home-buying process with confidence, ensuring a secure and successful homeownership journey.

Finance and Banking, Financial Wellbeing

Explained: how online tools can support financial planning

Financial planning is one of the most essential processes for building your wealth effectively, through whatever financial situation you’re in.

Therefore, it’s important you have everything you need to make this process as beneficial to your wealth as possible.

This includes online financial planning tools.

Read on to learn how you can access these advanced tools, and what they can provide for your financial planning process.

How can you access financial planning tools?

The first thing to know about online financial planning tools is where you can obtain them. The answer – your modern wealth management service.

Your expert wealth managers can offer you a variety of powerful online tools that are designed to make your financial planning process as efficient and accurate as possible.

You’ll be able to monitor, evaluate, and adjust various aspects of your finances with these tools, to devise the right approach for your financial ambitions. This can include your investments, tax wrappers, pension, and much more.

This can allow you to have the best chance of achieving a successful financial outcome and reaching all of your financial goals in the future.

Once you’ve obtained your wealth management service, discuss with your expert what your financial situation is, and how you can access the online tools.

Your wealth manager can then make the right recommendations for your financial planning, and help you select and utilise the right tools that align with your future goals and financial circumstance.

How can online tools help you with financial planning?

Your modern wealth management service can offer you advanced tools to assist in your financial planning process in many ways. This includes:

  • Full visibility of your accounts

One of the main benefits of online planning tools is that they enable you to have full visibility over your wealth. You can use the tools to accurately track all of your investments and accounts, and receive a wide range of useful data on each.

As an investor, you may have several investments spanning across different providers. Therefore, it can benefit you to have all these accounts tracked and managed from one central platform.

This can include investments in your pension, Individual Savings Accounts (ISAs), Junior ISAs, General Investment Accounts (GIA), and much more.

With full visibility, you’ll always know how your investments are performing, and how effectively you’re building your wealth.

  • Effective wealth planning

You can also use online planning tools to effectively plan your wealth and create the right approach for achieving your financial goals.

This can be done through key insights and controlled variables when planning your investments.

For instance, you may be planning for your retirement and looking to create the right structure for your pension contributions to build your wealth tax-efficiently.

You can use the tools to plan out your future contributions and see how different amounts and various timings of your contributions could have an impact on your savings.

You can change variables such as the amount you contribute, as well as drawing different levels of income, to see how this might alter your wealth as you build it.

  • Insightful guides

Another key benefit of online planning tools is the unique guides and information you can receive from financial professionals.

You can gain access to a range of articles, webinars, and more, created by experts with extensive knowledge in the financial sector.

This can help you devise the right approach to your financial situation, regardless of what it may be. For example, you can gain insight into how to plan for your retirement effectively, navigate a divorce whilst protecting your wealth, or shelter your estate from tax when receiving or inheriting money.

—

Will you be contacting your wealth manager to gain access to their powerful online tools and help elevate your financial planning process?

—

Please note, the value of your investments can go down as well as up.

Cost of Living Crisis, Financial Wellbeing, HR, HR News, News

“Almost all” employers now expect their workers to experience financial difficulties in 2023

Recent research* undertaken by Partners& finds that increased fuel poverty, rising mortgage costs, and continued high inflation will intensify financial challenges for employees and their employers next year.

A survey of 169 senior HR, Finance, and C-suite professionals – representing a combined workforce of almost 189,000 employees – confirms that 2023 looks set to be a financially gloomy one for employees.

The research was undertaken by risk management and insurance intermediary Partners& on 30 November 2022, and reveals that 9 in every 10 employers (90%) expect at least some of their workers to be in fuel poverty when the next increase in domestic fuel prices takes hold.

 

Steve Herbert, Wellbeing and Benefits Director at Partners&, explained:

“The Chancellor, Jeremy Hunt, has announced that the Energy Price Guarantee will increase from its current typical level of £2,500 per annum to £3,000 per annum from April 2023. 

One widely accepted definition of fuel poverty is any household spending more than 10% of its income on energy usage.  So, in simplified terms, any family earning less than £30,000 per annum in 2023 could soon fall into fuel poverty. 

Our survey suggests that 59% of organisations employ at least some workers on salaries of less than £30,000, with a further 1 in 4 (24%) employers paying “most” of their workforce less than this level.  A small number of respondents (7%) indicated that nearly all of their employees are earning less than £30,000.

 

But employee financial problems in 2023 don’t stop there.  The same research by Partners& found that the growth in interest rates – and, in particular, its impact on debt and mortgage repayments – is now becoming a very real problem for workers too.  Inflation and the cost-of-living crisis (31%) is however expected to remain the single biggest financial challenge for employees in 2023, yet almost two thirds (62%) of employers suggest that the combined impact of both soaring inflation and high interest rates pose the biggest issue for workers, and 6% now consider rising interest rates as the single biggest financial challenge for their employees and their household finances next year.

 

Herbert continued:

“The Bank of England’s base rate for borrowing has been at record lows for much of the last decade, and as a result house prices and mortgage borrowing have boomed during that period.  With such high levels of debt even relatively small rate increases are causing real pain to many working families with mortgages, particularly as inflation and other household costs also remain high.”

 

Other survey findings show that almost all (97%) employers now expect the numbers of their employees experiencing financial difficulties to increase in 2023, and that more than two thirds of employers (67%) were actively aware of employees already struggling with their personal finances.

Partners& highlights that financially distracted or distressed employees are likely to be less engaged and productive than those without money worries, which makes this issue a genuine concern for employers seeking to navigate their way safely through the recession ahead.

 

Herbert concluded:

“It’s clear that employers expect 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.  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.”

—

Please visit the Partners& website for our full range of Wellbeing and Employee Benefits services, and our Financial Wellbeing pages for details of the impact on financial stress on employees, and our services in this area.

*The Research was undertaken at the Partners& Employment Webinar on the 30th November 2022 amongst an audience of 169 senior Human Resources (HR), Finance, Payroll, and C-suite attendees representing a combined workforce of almost 189,000 employees.  The employers represented in the survey arose from a range of Private, Public, and Third Sector employers.

About Partners&

Partners& is a Chartered insurance broker providing specialist insurance, employee benefits, risk management and claims advice to businesses and private clients. As a next generation insurance advisory business, Partners& combines the best traditions of broking, such as technical advice and client service, with modern thinking and intelligent use of technology, to enhance the client experience and create a dynamic workplace for its talented team. The company recently received two awards, Best Diversity & Inclusion Programme and Best UK Start Up at the 2021 UK Broker Awards.  It has also been awarded its second gold Investor in Customers award demonstrating its commitment to delivering exceptional client experience.

 

For more information, contact Malia Brown at malia.brown@partnersand.com or visit www.partnersand.com

Cost of Living Crisis, Finance and Banking, Financial Wellbeing, Fintech, News

UK gig workers face financial exclusion when accessing loans and mortgages

New research finds that 76% of UK gig workers have struggled to gain approval to access financial products such as a loan or mortgage.

  • Just over 7 in 10 of gig workers* surveyed have been denied a loan, despite having a good credit score.
  • On average, gig workers surveyed have had to apply to three different lenders before receiving access to a credit card or loan.
  • Over half (52%) of gig workers surveyed have lost out on a new home due to being declined by a bank or building society, despite knowing they have affordability.

Rollee, a fintech start-up providing secure and consented access to income data, today reveals that over three quarters of UK gig workers surveyed struggle to gain approval from financial institutions to access financial products such as a loan or mortgage. The findings in The Hidden Cost of Gig Worker Living report from Rollee, also reveals that just over 7 in 10 (74%) UK gig workers have been denied access to basic financial products such as a loan, despite having a good credit score.

Of 1002 gig workers surveyed, over a half (60%) of gig workers have had to apply to three or more different lenders before receiving access to a credit card or loan. 10% were successful when applying to their first lender.

There are 4.4 million people working for gig economy platforms at least once a week in the UK today who contribute £20bn to the UK economy.

The hidden cost of gig worker living

The report highlights that the struggle to access financial products is having an impact on the lives of gig workers across the UK. In fact, over half (52%) of gig workers surveyed have lost out on a new home due to being declined by a bank or building society, despite knowing they have affordability.

Gig workers surveyed also expressed the struggles they experienced when accessing financial services such as loans, or credit cards. Almost a third (32%) say it has placed stress on them and their families. Others report it has caused them financial hardship (29%), has prevented them from accessing housing (20%) and impacted the opportunities available to them in life (29%).

Looking ahead, 80% of gig workers surveyed feel concerned that the current-economic climate will impact their ability to be approved for a loan and to help with the cost of living throughout winter and the Christmas period, 25% will apply for a loan over the next couple of months.

Ali Hamriti, CEO and Co-founder at Rollee comments: “This research reveals the level of financial exclusion gig workers are facing. The struggle gig workers experience is not because they can’t afford a loan or mortgage, but because the current credit scoring systems of financial institutions are not set up to verify their multiple records of income and employment data. And with financial institutions under increasing pressure this results in workers being denied access to products they should be entitled to.”

“Self-employed workers need a fair chance to be able to prove their solvency to financial institutions. As the number of independent workers continues to rise, it is vital that financial organisations find new ways to gain full visibility of self-employed workers’ employment data to assess them fairly, and ensure they are not excluded from financial products just because of their working status.”

Rollee helps financial institutions to make fair and accurate decisions when applying for financial services. In the UK, Rollee is working with lenders, insurances, accountants and PCO fleet managers to provide them with a gateway to gain easy, reliable and fast access to income and employment data.

—

About the survey

This survey was commissioned by Rollee and conducted by Opinion Matters, among a sample of 1002 gig workers in the UK working in at least 1 self-employed job, or platform job. Fieldwork was carried out between 7th November – 14th November 2022. Opinion Matters abides by and employs members of the Market Research Society which is based on the ESOMAR principles.

About Rollee

Rollee is the first API platform in Europe enabling financial institutions to have easy, reliable and fast access to income and employment data. Rollee’s mission is to build the gateway to access employment data to enable financial institutions to make fair and accurate decisions when providing financial services. Visit www.getrollee.com for more info.

 

*Respondents who have applied for financial products since being a gig worker

 

 

 

Finance News, Financial Wellbeing, HR News, News

HR experts: Cost-of-living crisis may last for years

Research* undertaken by national intermediary Partners& in September suggests that the vast majority of senior HR leaders expect the inflation crisis to last for a year or longer, and 1 in 10 employers are uninsured against criminal activity

 

Hardly any senior HR and employment professionals (1%) expect the UK’s inflation rate to return to its pre-crisis target level within the next twelve months.

This worrying statistic was established in a survey of more than 160 senior Human Resources (HR), Finance, Payroll, and C-suite professionals by fast-growing national intermediary Partners& in September.  The survey revealed that 9 in 10 employers expected the inflation crisis to last for more than a year, with 40% believing that inflation would return to its target rate in 1 – 2 years, and exactly half of all employers (50%) expecting the reset to take 2 years or even longer.

 

Steve Herbert, Wellbeing and Benefits Director at Partners& said: “There appears to be a persistent myth in the national media that the peak of inflation will mark the end of the cost-of-living crisis.  Yet passing the peak of inflation means only that prices are continuing to increase from their already high level, just at a slightly lower rate than before that peak was reached.  This effect is known as disinflation. 

“It follows that employees pay will continue to be squeezed until inflation returns to somewhere near it’s expected 2% Bank of England target level, adding to the long-running stagnation of real earnings which the UK has experienced ever since the financial crisis of 2008.  Employers will therefore need to be mindful that financial stress and money worries will continue to plague many employees throughout this period.”

 

Partners& also point to the recent turbulence in financial and currency markets – and in particular the rapid growth of mortgage interest rates – as another concern for millions of employees.  Mortgage market experts are currently predicting the Bank of England (BoE) base rate to increase from its current level of 2.25% to as high as 5% or even 6% next year.

 

Herbert continued:  “By historical standards these base rates would not be considered particularly significant, yet they are more than double the current rate, and much higher than the record low of 0.1% experienced during the pandemic.  It should also be noted that the level of mortgage debt is now very much higher than it was the last time that interest rates hit the 5% level, and it follows that the impact on monthly repayments is likely to be quite penal for those with mortgages.  This is worrying, not least because around 1.8 million households will reach the end of their fixed term mortgage deal in 2023.

“We are deeply concerned that the cost-of-living crisis combined with the increased cost of borrowing will leave employees facing years rather than months of difficult financial decisions.” 

 

Partners& highlight that financially distracted or distressed employees are likely to be less engaged, focused, or productive at a time when employers need each and every employee to deliver their optimum level of productivity.  The intermediary is encouraging employers to offer workers practical support via the targeted use of employee benefits, discount schemes, and financial wellbeing tools.

Partners& also warn employers that the extremely difficult financial situation ahead could force some workers to cross a line into areas of professional bad practice or even potential criminality.  Employers need to be aware of these risks, and ensure that they have the right insurances in place to protect their organisation.

 

Matthew Clark, Cyber Director at Partners& added: “Our research reveals that more than 1 in 10 employers (13%) don’t have crime or cyber-crime insurances in place currently, leaving their entire organisation dangerously exposed in the event of criminal activity.   It is also the case that fewer than half of all employers (46%) surveyed actively reviewed their cover provided on an annual basis to ensure that it is still appropriate.

“We would strongly encourage all employers to urgently review their cover in case there is an increase in illegal activity in the difficult months ahead.” 

 

Please visit the Partners& website for details of their new Financial Wellbeing support offering and Cyber insurance services.

 

—

*The Research was undertaken at the Partners& Employment Webinar on the 8th September 2022 amongst an audience of more than 160 senior Human Resources (HR), Finance, Payroll, and C-suite attendees.

About Partners&

Partners& is a Chartered insurance broker providing specialist insurance, employee benefits, risk management and claims advice to businesses and private clients. As a next generation insurance advisory business, Partners& combines the best traditions of broking, such as technical advice and client service, with modern thinking and intelligent use of technology, to enhance the client experience and create a dynamic workplace for its talented team. The company recently received two awards, Best Diversity & Inclusion Programme and Best UK Start Up at the 2021 UK Broker Awards.

For more information, contact Malia Brown at malia.brown@partnersand.com or visit www.partnersand.com

 

Financial Wellbeing, News

9 in 10 employers expect their employees to experience financial difficulties this winter

 Research* undertaken by national intermediary Partners& last week highlights growing concerns about the financial wellbeing of employees as the cost-of-living crisis continues

 

A survey of more than 160 senior Human Resources (HR), Finance, Payroll, and C-suite professionals last week highlights how challenging the next few months may be for many employees, and by extension their employers also.

The research found that 9 in every 10 employers expected either a small (38%) or significant (52%) increase in the number of their employees experiencing financial difficulties this winter.  The same survey also revealed that almost two thirds (65%) of organisations are already aware of employees struggling financially.

 

Steve Herbert, Wellbeing and Benefits Director at Partners&, commented:

“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.”

 

As widely reported in the national media, many organisations are seeking to help their workers with “one off” cost-of-living payments, and the Partners& research revealed that a third of employers have already made (11%), agreed to make (3%) or considering making (19%) such a payment to support their workers through the crisis.  Yet some employers are just not in a position to make such an expensive gesture, with 1 in 4 (25%) indicating that their employer could not currently afford to make a support payment.

 

Herbert continued:

“Whilst 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 – and 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.”

 

Partners& – in conjunction with their ecosystem financial-advice partners Integrity365 – are launching a range of Financial Wellbeing tools in October 2022, with a planned package of additional tools available from early 2023.  These services will aim to equip employees with tangible and useful discount options on everyday spending, as well as providing the basic knowledge and understanding to enable sensible and pragmatic financial decisions against the backdrop of the cost-of-living crisis.

Partners& research suggests that around a quarter (25%) of employers already offer some financial education services, with around 3 in 10 (31%) actively considering the introduction of such services in the autumn of 2022.

 

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.”

Employee Benefits, Financial Wellbeing, HR, News

Cost Of Living: Employers Aren’t Doing Enough To Keep Up With The Cost Of Inflation, Say Employees Forced To Turn To Alternative Measures

Nearly three quarters of Brits (71%) say they do not feel that their employer has adequately kept up with the cost of inflation, according to data from people analytics company Visier.

When asked how they plan to handle the rising cost of living in the next 12 months, over two in five Brits (43%) say that they feel they could be forced to find alternative ways of making money if their workplace does not do more to support them. Some employees said that they plan to hand in their notice at work to take on a new role offering a higher salary (17%) or increase their value with their own employer by showing them they could get a job somewhere else (14%).

 

Keeping pace with the rising cost of living

The survey – of 2,010 full time employees who work at organisations employing more than 250 people in the UK – reveals that fearful Brits expressed concerns with paying their energy bills (75%), rent or mortgage (53%) and paying for food (57%).

The vast majority of respondents (94%) agreed that household incomes simply cannot keep up with the rising cost of living. And, as  the cost of living continues to rise, 79% said that they think their employer has an obligation to support them in managing this.

 

Tackling ‘reverse retention’ challenges

The data suggests that increasing living costs have led to a growing trend in ‘reverse retention’ tactics whereby employees would consider attempting to get an employer to improve their employment package by threatening to leave.In fact, when asked the percentage salary increase they’d expect if handing in their notice in order to negotiate a pay rise, a quarter (25%) said they’d be looking for a 9-10% salary rise.

And, despite 79% of respondents admitting to having never done this before, the data suggests that it’s not just salary concerns that appear to be driving Brits to threaten to quit.

Almost three in five respondents  (58%) do not feel guilty about planning to hand in their notice in order to improve their employment package. When asked why they do not feel guilty, needing money to pay energy bills (67%), an alternative employer might pay more (63%) and the most competitive recruitment market in a generation (45%) were cited as the main reasons.

Alongside these concerns with the rising cost of living – including record high gas prices – employees also highlighted the financial benefits to working from home, which included saving money on commuting (79%) and saving money on buying lunch at work (47%).

For employers, it’ll be important to recognise that as prices continue to soar, employees will be looking to their employers for ways to support them in cutting back on costs and flourishing in the workplace. It’ll therefore be critical to start thinking about retention tactics now in order to get ahead of employees’ resignation letters – or negotiation tactics – before they arise.

The good news is that respondents said that if their employer offered flexible or hybrid working schemes (31%), more learning and development initiatives (23%) and a bonus scheme (45%),they would be less likely to employ “reverse retention” tactics.

 

“An increasingly competitive labour market, ongoing economic uncertainty and the rising cost of living are likely to continue to fuel employees confidence in threatening to go elsewhere if their workplace package is not up to scratch”,  said Ian McVey, MD EMEA at Visier.

“To get ahead of this trend – and support employees during these particularly turbulent times-  business leaders must find the answer within the people data the business is operating with. For example, keeping abreast of employee sentiment and implementing robust employee experience strategies can create a picture of what it is like to work at a company, and how employees are feeling. Empowering  line managers, and HR teams with these insights can help businesses to not only place more emphasis on improving their retention strategy based on what the data is telling us that employees expect, but in supporting employees with the things they need in order to stay at the company”.