How payroll services can help ease financial stress for workers - Mark Fleet

One of these solutions is to take advantage of any payroll services provided by your employer. With financial worries among the biggest causes of stress in the workplace today, payroll services offer employees a simple way of building financial resilience, by enabling them to save or borrow at a competitive rate through their payroll and directly from their salary.

Employers can offer their employees convenient access to a range of financial services directly from their payroll, streamlining the process of saving, borrowing and managing finances, while simultaneously eliminating the need for employees to seek high-interest or unscrupulous external financial institutions. Through payroll partnerships, employees can opt for automatic payroll deductions, directing a portion of their earnings into dedicated savings accounts and allowing them to save through their pay.

This saving mechanism encourages employees to make regular contributions towards their financial goals, be it building an emergency fund or saving for a holiday, and improves their saving habits in both the short and long term - something which is particularly useful at a time when many people are still recovering from the financial impact of Christmas and may be counting the days until they next get paid.

They provide access to affordable loans. In times of unforeseen expenses or financial emergencies, access to affordable loans becomes indispensable. By offering fair and transparent loan options at preferential rates to employees through payroll partnerships, employers can provide an alternative to high-interest loans, loan sharks, doorstep lenders and credit cards, helping employees navigate financial challenges without falling into cycles of debt.

Providing payroll services will also see employers benefitting from an increase in overall workplace satisfaction and retention rates - as well as loyalty and productivity - by demonstrating a commitment to supporting employees beyond their paycheck, which helps to foster a positive workplace culture.

It also improves employee wellbeing by reducing instances of financial stress in the workplace. With research indicating that financially-stressed employees are six times more likely to fail to complete daily tasks, it's clear that this is a benefit that shouldn't be overlooked.

In conclusion, payroll partnerships offer a multitude of benefits for both employers and employees. From promoting financial wellbeing and the importance of saving, to providing access to affordable loans, these partnerships pave the way for a brighter financial future.

At Leeds Credit Union, our payroll partnership program is designed to empower employers and employees alike, promoting a culture of saving and responsible borrowing.

We work with around 30 locally-based payroll partners, to whom we have approved £2,558,225 in loans since the start of our financial year from October 2022.

Mark Fleet is CEO of Leeds Credit Union.