Research from employee benefits technology provider, Zest has found two in five (41 per cent) UK employees saying they want more financial support from their employers to manage rising energy costs.
As the Iran war affects energy prices, employee demand for support with energy bills is likely to grow over the coming months. Energy consultancy Cornwall Insight estimates that average annual household energy bills could go up by £332 in July as a result of global disruption caused in the war in the Middle East.
Half of people (49 per cent) in the UK admit they are concerned about the rising cost of energy bills as prices surge putting additional pressure on household finances. This has led to employer contributions to energy costs being named as one of the most in-demand workplace benefits on offer – however, only a quarter (27 per cent) of workers currently receive this support.
Four in ten (44 per cent) employees say they want additional financial support from their employer more generally with increasing mortgage and rental costs and the rising price of childcare named as other areas of concern.
As living costs rise and wage growth stagnates – the latest ONS figures show wage growth is at its slowest rate in five years – employers must reward and motivate their workforces through alternative benefits and financial support mechanisms to remain competitive or risk losing talent.
Six in ten (58 per cent) employees thought their benefits package was inadequate last year and seven in ten (70 per cent) admitted that they’d leave their job if another company offered them better benefits.
“As energy prices soar many households are approaching a financial breaking point,” observes Matt Russell, CEO of Zest and Epassi UK. “Employers can ease some of the pressure by offering greater financial support to their employees to manage rising costs of energy bills or consumer goods.
“Businesses should be looking for alternative solutions to maintain morale and support the financial wellbeing of employees,” says Russell. “Employers who are unable to do this risk losing talent, which impacts their competitive edge and ultimately commercial performance.”
