How Payroll Saving Schemes Help Staff and Employers
With one in eight people in the UK having no savings at all and one in three having less than £2,000 tucked away, employers can help improve the financial welfare of their staff by helping them access an easy payroll deduction scheme with a credit union.
By becoming a Credit Unions of Wales Payroll Partner, employers can help staff build up a savings pot that will make them far less susceptible to the inevitable financial ‘shocks’ that life throws at us, from washing machine repairs to leaking roofs.
It also makes sound business sense. The Chartered Institute of Personnel and Developments (CIPD) has reported that poor financial well-being can cause:
• Higher stress and anxiety levels;
• Reduced physical and mental health;
• Lower staff productivity;
• Poorer job performance
• Reduced ability to concentrate;
• Increased likelihood of absenteeism.
Meanwhile, research by the Chartered Institute of Payroll Professionals (CIPP) found that significant personal debt and financial stress causes the loss of 17.5 million UK working hours each year.
With a Credit Unions of Wales payroll savings scheme the staff member decides on the amount of money they want to save, then it’s transferred at source from their salary before they have chance to miss or spend it.
There is no cost to the employer in running the scheme and, as with any bank or building society, all savings with a credit union are guaranteed up to £85,000.
As they are saving with a financial co-operative, there are no external shareholders, meaning that profits are ploughed into providing the best possible services to the members.
It also helps the wider locality, as savings and interest paid on loans helps the credit union provide services to everyone as well as lead important projects such as school savers clubs or reaching into underserved communities with collection points.
Along with savings, payroll deduction can help staff access loans with affordable interest rates, helping them to avoid high cost credit, ‘payday’ lenders or asking their employer for ‘subs’.
To find out more, contact your nearest credit union here or email us at firstname.lastname@example.org.