Employer Payroll Deduction Scheme
How to help your employees with their finances
A payroll deduction is free, simple to administer and is mutually beneficial to employer and employee. All BERKSHIRE CREDIT UNION requires from the employer is a single monthly exchange of data and BACS funds transfer. If the employee wants to alter or cancel their payroll deduction they need to inform the employer.
Payroll deduction is a simple process with administration largely handled by the credit union, not the employer who incurs minimal cost to offer this benefit.
The contractual relationship is directly between the credit union and the member of staff therefore there is no risk to the employer regarding loan repayments and saving security. The employer only acts as a conduit for the transfer of funds.
Click here for a video produced by Cornerstone Mutual Services that explains the save as you earn through payroll deductions concept really well.
- Less stressed employees with improved productivity
- Employees who are in control of their debt
- Meets and demonstrates your corporate social responsibility objectives
- Can help recruitment and retention of staff
- The link between debt stress and depression is well established. It is estimated that at least 50%, and perhaps as many as 90%, of people in debt feel anxious or depressed. (Stepchange, Debt Charity)
- Staff turnover costs British businesses at least £4.13bn every year as new employees take up to eight months to reach optimum productivity levels. (Oxford Economics)
- When staff are pre-occupied by money worries they are not focusing on their work and performance will suffer. Requests for salary advances and loans from employees under financial strain create difficulties for organisations as well as more work for payroll officers if the requests are granted. (Kim, J., Garman, E. T. (2003) Financial stress and absenteeism: An empirically derived model. Financial Counselling and Planning, Volume 14(1)
How do I set a scheme up?
Contact BERKSHIRE CREDIT UNION here to arrange a meeting/discussion and we will take you through the very easy process to create a scheme.