Payroll partners are those employers who work with their local credit union to offer a range of financial services to the workforce as a perk of employment.
Credit Unions of Wales has more than 140 payroll partners across the country, organisations large and small demonstrating their commitment to social responsibility and their staff’s financial wellbeing.
By becoming a payroll partner, employers support the financial welfare of their staff by encouraging them to save or borrow responsibly.
The Chartered Institute of Personnel and Developments (CIPD) reports 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.
One of the key services offered to the workforce is the payroll savings scheme.
This allows staff to save money by having a nominal sum of money taken from their salary and placed into a savings account – before they have the chance to miss or spend it.
Payroll saving can be an incredibly effective tool to ensure there’s money set aside for a planned event or an unexpected bill.
Here’s how payroll savings work:
- Staff set the amount they wish to save and written authority is provided to the payroll processor in the organisation;
- This amount is deducted from payroll each month and a schedule sent to the credit union to allocate deposits to the staff members credit union savings account;
- Staff request withdrawals direct from the credit union;
- There is no cost or risk to the employer.
Along with savings, your staff will also be able to access credit union loans should they need them.
By borrowing from a credit union, staff are accessing a service with affordable interest rates, helping them to avoid high cost credit and ‘payday’ lenders.
As credit unions are not-for-profit community savings and loan providers, the money saved benefits the members, local community and economy, not third-party shareholders.
By joining their credit union, staff may also access perks such as free life insurance, as well as the rights to have a say in how their credit union is managed and, profits permitting, receive an annual dividend.