How payroll saving schemes make a real difference

Employee financial wellbeing is a moving target, particularly as means, needs and challenges change according to life stage. Developing a multi-generational financial wellbeing programme will be essential to catering to the needs of your entire workforce. 

In this blog

How payroll saving schemes work

Employee financial wellbeing: The benefits

In practice: Three employee examples  

Conclusion and key takeaways

How payroll saving schemes work 

A payroll saving scheme sets aside a regular amount from an employee’s earnings into a separate savings pot. This ‘set and forget’ approach makes saving automatic and effortless, helping employees build a buffer or emergency fund over time. 

It’s the most popular of all financial wellbeing employee benefits. Research found that 41% of employees want to be able to save directly from their earnings via payroll. 

Employee financial wellbeing: The benefits 

Payroll saving schemes let employees offer numerous benefits for both employees and employers, including: 

• Improved financial resilience: Employees can build a safety net for unexpected expenses. 

• Reduced financial stress: With savings automatically deducted, employees worry less about managing their finances. 

• Enhanced engagement and productivity: Financially secure employees are more focused and motivated at work. 

In practice: Three employee examples 

Let’s look at three employees at different pay scales to see how much they could save with a payroll saving scheme. 

1. Entry-level employee 

2. Mid-level employee 

3. Senior-level employee 

These examples demonstrate how payroll saving schemes can help employees at different pay scales build significant savings over time. For the entry-level employee, having effectively £1,000 saved in a year can provide a crucial buffer for unexpected expenses, reducing financial stress and enhancing their overall wellbeing.  

For mid-level employees, saving more than £2,000 annually can contribute to larger financial goals, such as a mortgage deposit or funding further education. Senior-level employees, with virtually £4,000 saved annually, can build a substantial emergency fund or invest in longer term financial security. 

The positive impact for the organisation 

The impact of these savings extends beyond individual financial health. Employees who feel financially secure are less likely to experience stress-related issues, which can lead to improved mental and physical health. This, in turn, translates to higher productivity, lower absenteeism, and greater engagement at work.  

Conclusion: Payroll saving is a win for everyone 

Organisations that implement payroll saving schemes can benefit from a more motivated and loyal workforce, reduced turnover rates, and a stronger employer brand. Making saving automatic and effortless helps employees build a financial safety net, reduce financial stress, and raise their engagement and productivity.  

By supporting employees in building financial resilience, HR and leadership will also create a truly positive difference for the whole organisation. 

Key takeaways

• Payroll saving schemes make saving automatic and effortless, as illustrated by the savings of entry-level, mid-level, and senior-level employees. 
• Employees at all pay scales can benefit from building a financial safety net, with significant savings over even just one year. 
• Improved financial wellbeing leads to reduced stress and increased productivity, contributing to better mental and physical health. 
• Employers can differentiate themselves by offering payroll saving schemes, attracting and retaining top talent. 
• Financially secure employees become more engaged and motivated, fostering higher productivity and lower absenteeism. 

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Make saving easy for employees 

Help your people build financial resilience with MyView PayNow—a comprehensive app featuring payroll savings, budgeting tools, and flexible pay options.