'Not normal times'
Meanwhile, senior partner at Richmond Wealth, Chris Bryans, said his firm has introduced additional pay rises to help offset wage stagflation, as well as one-off payments.
“We recognised the particular circumstances that staff were in and sought to address this,” said Bryans.
“For example, some part-time staff had sought additional hours to help make ends meet. There was a company-wide conversation around the impact rising prices were having on both clients and staff.”
As a result of this meeting, Richmond Wealth looked at each person's specific circumstances and aimed to help with additional hours, a further pay rise, a one-off payment or a combination of these things.
“Unfortunately, we don’t see things easing in the short-term and feel we may end up having to revisit this again in the winter,” said Bryans.
“We have wealthy clients commenting on the rising cost of eating out and having a glass of wine – this is a subject that would not have come up before. Clients are also reassessing their financial situation and some with very large pension and investment portfolios have questioned whether they need to cut back because of the impact of inflation.
“We are finding that those with longer memories have a real concern about what high levels of inflation can do to their wealth.”
Even at home, Bryans said employees are more conscious of what is switched on, what gas and electricity is being used and whether to improve loft insulation.
“These are not normal times.”
Nucleus helps staff earning less than £30k
Providers are also doing their bit to make up for disproportionate prices at a time of little to no wage growth.
In May, investment platform provider Nucleus introduced a ‘Special Assistance Payment’.
“With the current cost of living crisis and inflation hitting 40-year highs of around 9 per cent, Nucleus wanted to move quickly to support those in the business they feared could be hardest hit in the months ahead,” chief executive Richard Rowney told FTAdviser.
The company is making payments of £1,500 to its people on permanent or fixed term contracts who earn less than £30,000 a year.
Eligible staff are being paid in three equal instalments of up to £500 in May, July, and September 2022.
The firm also intends to review salaries and “legacy payment structures” in the annual remuneration process at the end of the year.
FTAdviser understands other providers intend to announce extra financial support for employees sometime in August.
ruby.hinchliffe@ft.com
