Money makes ‘the world go around’ ‘the world go around’ – so the musical Cabaret tells us!
Money is useful in lots of ways; it can provide a roof over our head and food on the table, but it can also cause problems too and sometimes there doesn’t seem to be enough of it to go around.
This month, we’ve teamed up with our friends at Wolverhampton City Credit Union to explore the benefits of regular savings, and how setting up a payroll deduction scheme can support employee financial wellbeing.
Why is putting money aside regularly good for my employees?
Research from the Association of British Credit Unions (ABCUL) Work Not Worry campaign revealed that:
- 1 in 4 employees lose sleep over money worries
- 26% of working age adults in the UK have no savings and 29% have less than £1000
- 59% of employees with money worries say they are not working at their best
Things have a habit of going wrong at just the wrong time – that unexpected bill, maybe your fridge freezer and your tumble dryer have packed up in the same week. Typical!
Money worries can keep your employees awake at night and leave everyone feeling more stressed out during the day. And we know that if your team aren’t feeling 100% at work their performance can suffer, making them feel even more stressed.
Building a nice cushion of savings direct from their salary means that employees will have money tucked away to cover things just like that. But it’s not just for those unexpected bills. Saving builds financial resilience, moves away some of those “what if” thoughts, and ultimately reduces some of those everyday pressures, supporting a better sense of wellbeing.
Setting up payroll deduction for your employees (or suggesting it to your boss) shows that you really care about your colleagues’ financial wellbeing – which is equally as important as their physical and mental health – and can help you stand out as a responsible employer.
How does a Payroll Deduction Scheme work?
Setting up savings via payroll deduction means that your employees can save and borrow direct from their salary.
The money comes out before they get paid and they will see it on the “deductions” side of their payslip, normally below their national insurance and income tax, and it goes straight into their credit union account.
They can save and borrow for any purpose – a new car, special holiday, wedding etc, the list is endless.
Wolverhampton City Credit Union (WCCU) was established in 2002. It’s a community based credit union, providing savings and loans to people who live or work in a WV postcode area. They have over 7000 members, with savings of £3 million and loans of £1.6 million.
WCCU currently have payroll deduction schemes with employers such as City of Wolverhampton Council, Royal Wolverhampton NHS Trust and Wolverhampton Homes. Here’s what the employers had to say:
“The partnership with the credit union provides a simple but effective way of helping employees to build their financial resilience and wellbeing.” -Jeremy Vanes, Chairman, The Royal Wolverhampton NHS Trust
“I’m all in favour of the credit union payroll deduction scheme. It means that our colleagues have an additional benefit with no added expense and it helps to encourage a savings culture with the added bonus of access to affordable credit.” -Lesley Roberts, former Chief Executive of Wolverhampton Homes
“The partnership with the credit union supports our organisation’s commitment to our employees’ financial wellbeing. It’s also an investment in the area in which we work, where the need for fairer finance is ever more pressing.” -Karen Williams, Chief Officer at Bushbury Hill Estate Management Board
Where can I get more information?
If you’re interested in discussing a Salary Deduction Scheme for your employees please get in touch – email WCCU directly at firstname.lastname@example.org and we’ll happily chat to you about our payroll products and how simple they are to set up – alternatively have a look at our payroll page: https://www.wccul.co.uk/employer-partnerships
Wow, thanks guys – a really interesting read for businesses who are interested in payroll deduction schemes!