As winter nears, rising utility costs are pushing millions of working families to a financial breaking point.
- Past-due utility balances rose nearly 10% year over year, according to Politico
- Nearly 6 million households will soon have utility debt reported to collections
- Heating costs could rise by as much as 20% this winter, according to the National Energy Assistance Directors Association
This isn’t just about missed bills or slightly higher expenses. It’s a red flag for the growing financial stress employees are carrying. Why? Utility payments are typically among the last expenses to be delayed, right alongside rent, mortgage, or car payments.
With 70% of working Americans living paycheck to paycheck, many employees will soon find themselves under even more financial pressure. That financial stress weighs on them at work, influencing productivity, workplace safety, and even how they interact with customers and colleagues. For employers, this strain also presents critical business challenges, including higher healthcare costs and turnover.
How employers can help with rising utility costs and other financial challenges
Despite that many employees are struggling with everyday money problems and basic needs such as utility costs, traditional financial wellbeing benefits aren’t built to support these situations.
And while earned wage access or short-term loans may help employees cover cash shortages, they often lead to cycles of dependency and deeper financial harm, without the proper guardrails and longer-term solutions that address the underlying problem.
Brightside Financial Care supports employees who are financially struggling
We created Financial Care to fill a gap in the financial wellness benefits space, with a model that’s uniquely built to support working families with all financial needs, including when they’re in crisis, while also delivering ROI for employers.
Brightside Financial Assistants work one-on-one with employees (by phone or chat) to quickly find the best free and low-cost options for any financial need, question, or goal, whether that’s involves a utility shutoff, car repair, eviction, student loans, or major purchase.
Financial Assistants are non-judgmental, confidential supporters who always act in employees’ best interests. They not only work quickly to triage urgent needs, but also make it easy for employees to take continued steps toward improved financial stability and resilience.
Blair’s story: A utility shutoff, prevented
Blair, a frontline worker, struggled to keep up with basic living costs on a single income after her husband lost his job.
Just six days before a scheduled utility shutoff, she contacted her Brightside Financial Assistant. Within hours, Brightside found an organization in Blair’s area that paid her entire $300 utility bill and provided the family with free groceries and ongoing food assistance.
Now that Blair’s husband is back at work, the family has regained financial stability. Blair continues to work with her Financial Assistant to build an emergency savings fund, and find additional ways to reduce expenses and stretch her paycheck further.
Zuri’s story: Help that mattered for a struggling new mother
Zuri had recently moved and given birth when she contacted Brightside. With all of the new expenses and changes, she fell behind on utility bills and owed $420. She was struggling to cover the cost of diapers, let alone overdue utility payments.
Her Financial Assistant helped her secure free diapers and other baby supplies and connected her with a nonprofit that paid the full balance on her utility bill to prevent a shutoff.
Once her immediate needs were met, Zuri and her Financial Assistant kept working together to find more resources, including employee benefits Zuri didn’t know she had, that helped cover the costs of other essentials.
Brightside brings results for employees and employers
Brightside Financial Care is uniquely built to support working families with free and low-cost solutions that address all financial needs, including urgent situations, along with exclusive deals that put hundreds, even thousands, of extra dollars in their pockets.
Employers who offer Brightside see:
- Lower absenteeism and turnover
- Fewer 401(k) loans and hardship withdrawals
- Reduced healthcare costs
- Increased productivity and focus
- Improved use of other employee benefits
Rising utility costs are a reminder of the kind of financial support employees really need
With only 30% of employees considered financially healthy, more benefits leaders are following the lead of Amazon and other forward-thinking employers to look beyond traditional financial wellness benefits and explore more relevant ways to support employees’ financial needs.
Those that do will see the impact positively reflected across several measures, including workforce retention, performance, and healthcare costs.
Schedule a demo to learn more about how Brightside Financial Care can support your workforce.