From the 6th-10th September (National Payroll Week), Thistle Credit Union is joining other organisations across the UK to pay tribute to the payroll industry and all the excellent work they do in keeping the UK paid. We will also be recognising the importance of offering savings and loans via payroll deduction to employees, and why this is a benefit that all organisations should strive to offer their employees.
National Payroll Week was first established in 1998 to celebrate the payroll industry and give it the recognition it deserves. Ahead of National Payroll Week, and after extending our common bond area from Lanarkshire to the West of Scotland, we are relaunching our campaign to onboard more organisations onto the Payroll Deduction Scheme.
COVID-19 has been financially hard-hitting to many sectors and their employees across the UK. Being able to offer the Payroll Deduction Scheme to employees as a benefit will enable employers to help safeguard their employee's welfare and improve mental well-being. Reports have shown that poor financial well-being can cause:
- Higher stress and anxiety levels
- Lower staff productivity
- Poorer job performance
- Reduces ability to concentrate
The Financial Inclusion Centre (2019) study in Leeds, found that 78% of people who save with a credit union through payroll deduction are far more likely to save regularly, compared to 55% of non-payroll savers who are with a credit union, and 47% who are not members of a credit union at all. These figures highlight that when credit unions and employers work together, employees can save more effectively and in turn, results in several benefits to employers too. These include the following:
- Reducing staff sickness
- Helping employees to avoid debt & increase productivity
- Retaining staff
- Cutting costs of staff turnover
- Reduces the need for pay advances, with access to ethical lending options
- Enhances corporate responsibility profile
The Payroll Deduction Scheme comes at no cost to the organisation and allows them to fulfil their corporate social responsibility. Unlike high street banks or other lenders, credit unions are not-for-profit. Meaning that any profits made go directly back to members as a dividend or are used to further strengthen the business. Profit is NOT paid to any external shareholders.
Offering the Payroll Deduction Scheme enables employers to advertise this as part of the staff benefits package & highlight their ethical culture to current and future employees. The credit union also uses its online platforms to showcase our Payroll Partners to our followers.
Currently, we work closely with 30 organisations that provide their employees with access to our ethical savings and loan products via payroll deduction. These include South & North Lanarkshire Council & Community Links. A staff representative from Community Links discusses their journey as a payroll partner:
"Community Links staff have participated in Thistle Credit Union Payroll Deduction scheme since December 2015. The paperwork was very simple to complete for both staff and our payroll administrator. The funny thing is, you don't miss the money as it comes off at the source. Great way to save and peace of mind to know that we are all now regular savers. Would highly recommend it to everyone!"
All organisations, of any size, within our common bond area (KA, G, ML, PA & FK) are eligible to become a Payroll Partner.
If you would like to learn more or speak to our business development team, then please get in contact with us at payroll@thistlecu.co.uk.
