Employers: Why choose a credit union for payroll deduction?
There are plenty of reasons why employers should choose a credit union to operate their payroll saving scheme for staff.
The contractual relationship is directly between the credit union and the member of staff therefore there is no risk to the employer regarding loan repayments and saving security.
Helping staff to join a credit union and build their capacity to help staff is a significant demonstration of a company’s corporate social responsibility;
Credit Unions are non-profit financial organisations set up by members with something in common to benefit their community.
They offer ethical, local investments and by introducing staff to their local credit union, employers allow them to benefit from all the services and products available like savings and loans schemes.
Credit unions are committed to improving your community by offering affordable loans from the pot of savings invested by its members.
That means your organisation is positively engaging in the local community at no extra cost to your business.
When staff are encouraged to save money regularly it protects them from unexpected financial pressures and helps manage their money more effectively.
Quite simply payroll savings allows a set sum to be deducted from their wage packet and placed into a savings account.
It can put your workforce on a firmer financial stronghold which in turn makes them more secure, productive members of staff.
Anxieties about money have been associated with ulcers, headaches, back pain and an increased risk of heart conditions.
Citizens Advice found that 74 per cent of people with debt worries found it affected their mental health and led to absenteeism from the work place.
Therefore employees who manage their money are shown to have lower levels of stress.
By offering a cost-free staff benefit with a credit union, employers can enhance the package available to their employees while improving the prospects of staff recruitment and retention.
Staff can improve their standard of living by accessing affordable loans for things they might otherwise be unable to afford like a holiday, which could reduce the stress levels, sick leave levels or staff turnover.