In the ever-evolving landscape of today’s workplaces, employee well-being is a crucial metric for many organisations. A recent study by Zellis* has unveiled eye-opening statistics about the financial stress affecting UK employees, including:
As well as affecting employees personally, this stress also impacts their employers, with 35% of staff saying that the worry makes them less able to focus at work; 22% saying it takes them longer to complete tasks; and 17% admitting that they make more mistakes or errors. And a report by CEBR on behalf of Aegon UK**, suggests this worry is costing employers £10.3bn each year.
According to the Zellis research, a significant percentage of staff grapple with the challenge of managing day-to-day expenses, with a notable portion expressing concerns about handling unforeseen emergencies. In this context, the financial well-being of employees has become a pressing issue, impacting job performance, job satisfaction, and overall workplace morale.
Payroll saving could be part of the solution
As businesses seek effective ways to address these challenges, payroll saving programmes stand out as part of the solution. Offered by many credit unions, payroll savings schemes are free – for both employee and employer – and help staff begin to build some financial resilience.
Credit unions – such as Leeds Credit Union – are member-owned financial cooperatives. Everyone who saves (or borrows) with a credit union becomes a member and has their say on how the credit union is run via their annual general meeting. Fully regulated by both the PRA and FCA, most are also members of the Financial Services Compensation Scheme, so any savings are protected should the worst happen.
How do they work
The fine details may vary slightly between different credit unions but, in general, an employee joins the credit union, then tells it how much they would like to save each month. This amount is then automatically deducted from the employee’s salary and paid into their credit union account.
This not only cultivates disciplined saving habits but also addresses some of the financial challenges identified in both the Zellis and CEBR reports, helping to build long term financial resilience and reduce worries about money.
Leeds Credit Union works with many employers – both large nationals and smaller local businesses – in delivering payroll saving and lending.
If you would like to find out more about helping your employees through payroll savings, please email: partnerships@leedscreditunion.co.uk
or contact our Business Development Manager Mike Moore via LinkedIn at: https://www.linkedin.com/in/mike-moore-9655571b/
*”Under pressure – How financial stress impacts employee wellbeing and productivity 2023”. zellis.com
** “Financial wellbeing & productivity in the workplace” A CEBR Report for Aegon UK September 2023