National Payroll Week recognises the contribution that payroll makes to the UK economy, especially as taxable income accounts for nearly half of all taxable revenues through the (approximate) £470bn total tax revenue paid to the government with £152bn through income tax and £102bn through NI.
In addition, this year’s National Payroll Week will focus on how payroll can assist in educating the nation with regards to raising their financial awareness and understanding, especially in relation to automatic enrolment, and therefore play an important part in their organisation’s total reward strategy.
Research by Sodexo Benefits and Rewards Services has shown that nearly a quarter (22%) of employee respondents said the stress of their current financial situation impacts negatively on their work productivity. Its Financial stress is impacting productivity for nearly a quarter of UK employees survey, which questioned 398 employers and 760 UK employees aged between 18 and 64, found that this percentage rose to 36% among employee respondents aged 18 to 34.
The Sodexo research also showed that more than three-quarters (79%) of employer respondents felt that helping employees better manage their finances could form part of their HR strategy, as well as the organisations’ corporate social responsibilities. And that 44% of employer respondents do not have any scheme in place to help staff, while 38% offer financial education or advice.
The research also found:
This supports the CIPP’s findings in relation to financial wellbeing and employee productivity, and we are actively encouraging payroll professionals to take the lead in promoting financial wellbeing as part of their organisation’s total reward strategy. What better time to do this than through National Payroll Week?
How can payroll help?
Payroll can take the lead in educating your employees about their payslips, what their deductions are and the importance of saving for retirement. The CIPP has a presentation which is utilised for schools and colleges, but could be adapted to suit your organisation. Visit the community section of cipp.org.uk for more information.
In addition, you are best placed to recommend salary sacrifice, especially for their pension contributions and a financial education strategy as part of your organisations reward package. Both of which will improve your employees financial wellbeing.
Do your employees use pay day loans; even if you don’t know, why not offer them an alternative by partnering with a credit union? Whilst automatic enrolment is helping your employees save for their retirement, saving through another source, having deductions taken from their pay can help them with their more immediate needs. Using a credit union can also provide your employees access to loans and whilst the Institute cannot advise what’s available in respect of low cost loans, credit unions offer much better rates than pay day loans. You as the employer could also consider offering a loan, with the changes from April 2014 an employee can now have a beneficial loan up to £10,000 before they have any tax liabilities. All these initiatives can be a part of your financial and or reward strategy for your employees!
Celebrating National Payroll Week
Here are a few creative ways to get your colleagues involved:
Let us know!
The CIPP loves to see what payroll professionals are doing for NPW so whatever you do, let us know about it by emailing email@example.com
Make sure you and your payroll team get involved in the payroll’s professions biggest celebration in 2014.
*please note due to high levels of demand, we have now run out of stock for National Payroll Week packs