REWARD
“Broader involvement with external financial organisations enhances the value of payroll services by embedding financial wellbeing as part of the employee experience. Rather than employees turning to high-interest loans or payday lenders during difficult times, they can access supportive, employer-endorsed financial services directly through payroll”
these types of initiatives. See https://ow.ly/ mFOX50TUQgi. Debt repayment tools: many employees struggle with managing their debts, whether they are credit card balances, personal loans or other forms of borrowing. Look for a provider that partners with reputable organisations that can help employees manage debt and provide support for more sustainable repayment plans. The importance of collaboration Collaborating with financial wellbeing organisations and external partners is crucial for payroll departments to achieve their goals of supporting employees. These partnerships bring several key benefits. Expertise and resources: payroll teams, while essential in processing wages, may not have the in-depth financial knowledge to support employees with their personal finances. In most busy payroll teams, bringing in the additional element could be too much of a stretch, so collaborating with expert organisations allows payroll departments to offer employees access to professional financial advice and support. This collaboration brings together the operational strengths of payroll and the specialised knowledge of financial wellbeing organisations. Comprehensive employee support: financial wellbeing is about more than just payday; it includes savings, managing expenses, debt management and preparing for future financial challenges. Working with external partners enables
payroll to support employees across all these areas, ensuring they have the tools and resources to manage their financial health comprehensively. Improved employee retention and engagement: employees who feel financially secure are more likely to be engaged and satisfied with their jobs. In fact, employers that support their employees’ financial wellbeing often see improvements in retention, productivity and overall workplace satisfaction. Payroll departments that work with financial wellbeing organisations contribute directly to these outcomes, helping to create a more engaged and resilient workforce. Tackling inequality: financial stress disproportionately affects lower-income employees. By collaborating with financial wellbeing organisations, payroll can provide targeted support to those who are most vulnerable. Services such as payroll automated savings can be particularly impactful for employees who
may have limited access to traditional financial services. Payroll departments in the UK are evolving to take on a much broader role in supporting employee financial wellbeing. By collaborating with external financial wellbeing organisations, payroll teams can provide valuable support to employees that goes far beyond processing wages. This shift is driven by a growing recognition of the profound impact that financial stress has on employee wellbeing and productivity. Innovative companies are leading the charge in integrating financial wellbeing into payroll services. Offering tools like on- demand pay, financial education, payroll automated savings and debt management support can help employees to build long- term financial resilience. This collaboration between payroll and external financial wellbeing organisations is essential for fostering a financially secure, engaged and productive workforce. n
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| Professional in Payroll, Pensions and Reward |
Issue 106 | December 2024 - January 2025
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