The Cost of Living continues to have an impact on people across the UK. We know that financial stress and worry can have an impact on our mental health. With this in mind, Mindful Employer Project Coordinator Leigh Staunton has been speaking to Mike Moore at Leeds Credit Union about how this organisation can support employers and employees with financial wellbeing.
What is your role as Business Development Manager at Leeds Credit Union ?
My primary role is to look after the various external partner relationships we have – these include Leeds City Council, Wakefield Council, London Borough of Barking and Dagenham Council, several NHS Trusts, various Housing Associations and local organisations. My focus is to support, maintain and develop payroll schemes with existing and new partners.
If you need more information on this then please contact me on the details below:
Mobile :07970 683057
Email: partnerships@leedscreditunion.co.uk
What does the Leeds Credit Union offer in terms of financial wellbeing support for people working in Leeds?
Leeds Credit Union is a financial cooperative that provides straightforward, affordable financial services. As a mutual, there are no external shareholders so it is owned by its members and always has their interests at the heart of everything it does.
We offer a Money and Budgeting Service (MABS). MABS work with tenants to help create a realistic budget that ensures their bills are paid on time, as well as making the most out of their income. After completing an Income & Expenditure with a MABS Coordinator, they can call providers and creditors on the tenant’s behalf to discuss payment tariffs, look at switching providers and arrange payment plans for arrears.
We offer a range of basic savings schemes, starting from as little as £1.
We provide affordable loans to people who might otherwise borrow from high-cost lenders, with a typical interest saving of nearly £500 across a year for a LCU loan of £620 compared to a high-cost alternative.
Other products include a pre-paid debit card, Cash Perks and the Bill Paying Account.
Tell us a bit more about your Payroll Services and how this can benefit employers and employees.
Leeds Credit Union provides payroll schemes to many organisations. These schemes allow employees to have their savings and loans with LCU to be taken directly from their salary and paid to their LCU membership account.
There are many great reasons to incorporate Leeds Credit Union’s savings and loans scheme into your employee engagement programme:
• Safeguards employee health and well-being – can improve productivity and help to reduce absenteeism and anxiety caused by financial stress.
• Encourages staff loyalty and improves retention.
• Great tool for boosting attraction and recruitment.
• No set-up costs for you or your employees.
• Easy implementation – we manage the employee application process.
• Hassle-free ongoing management via a simple file transfer of monthly data and a single monthly BACS payment.
• LCU is duel regulated by the PRA and FCA, with individual employee savings covered by the Financial Services Compensation Scheme up to £85,000.
• Loans taken through payroll are eligible for a preferential rate.
• Totally inclusive – all your employees are automatically eligible for membership.
What kind of information can people find out on the LCYou Member Advice Corner of your website? Who can access this?
This section provides money saving hints & tips, Calculators such as loan repayment and benefits, news about LCU. Anyone can access it. We will be adding more content to this section during the year.
Leeds Credit Union is dedicated to helping people develop their financial resilience, what does this mean?
By offering a small range of simple, easy to understand savings accounts we want to help people build a savings pot – whether they save £10/month or £100, so that when they come across a financial hurdle in life (washing machine breaks, need to buy new school uniforms) they have a little put aside and don’t need to turn to illegal money lenders/loan sharks. Also, by our affordable loans, borrowers can repair their credit rating enabling them to access mainstream financial services in future.
Why should network members be looking to support the financial wellbeing of their workforce?
Independent Report – Getting Workforces Saving: Payroll Schemes with Credit Unions (February 2021)
“Low levels of financial resilience leaves households vulnerable to economic and financial shocks, and can have collateral effects on health and mental wellbeing, relationships, and workplace performance. Efforts to increase financial resilience, by building a cushion of accessible savings that can help protect against financial shocks, were already a priority before being further emphasised by the pandemic.
Increasingly, the workplace is seen as a prime arena for the delivery of financial services as well as financial guidance and support, offering an efficient opportunity to reach an accessible audience at scale. At the same time, the benefits of improving the financial wellbeing of staff are increasingly recognised by employers of all sizes.
The theory being that workers with better financial wellbeing will have lower financial stress and anxiety and therefore be more effective and productive.
Although not a new concept, payroll deduction is growing in prominence as a mechanism for workers to access loans and put aside savings.
Credit unions, like Leeds Credit Union have been delivering such schemes with
employers for decades.
Payroll deduction appears to be an effective mechanism for attracting non-savers, and converting them into regular savers.
Payroll saving appears to help lower income employees.
This study has shown how the deduction of savings at source, and their automatic allocation to a separate account, is an appealing mechanism for saving – and that the ease of this functionality is an important factor for users.
The findings suggest strongly that membership of a payroll savings scheme is associated with positive savings behaviours, and positive attitudes to regular and persistent savings.
Interventions that help employees to build their financial resilience and reduce financial stresses should also provide benefits for employers themselves – in terms of the general wellbeing and productivity of their staff.”
(Getting Workforces Saving: Payroll Schemes with Credit Unions (February 2021)
What other ways can you support local employers and people working in the city?
Historically we have provided financial and educational support to local schools and we are looking to do some joint initiatives with various faith groups.
We work with partners to help people avoid or leave homelessness, and to assist people gaining employment. We have built a referral network within our communities, to direct members to relevant organisations where specialist help is needed.
We can open accounts for people with non-traditional IDs, for prisoners and ex-prisoners, and for those who’ve been bankrupt.
We have worked with a number of community based organisations including initiatives with local food pantries.
What does Leeds Credit Union do to support the wellbeing of people working at your organisation?
Leeds Credit Union understands the positive impact that healthy and engaged employees make to its success and that mental health, and wider wellbeing issues will play a significant role in an employee’s state of mind.
Inclusivity and Diversity
We celebrate diversity and foster an inclusive
environment where every team member feels valued and
respected. Our differences make us stronger, and we are
committed to providing equal opportunities for all.
Work Life Balance
We understand the importance of maintaining a healthy
work-life balance. Our flexible work arrangements and
supportive policies promote well-being, ensuring our
team members can thrive both personally and
professionally.
Recognition and Appreciation
We appreciate the hard work and dedication of our team
members. Regular recognition programs, employee of the
month awards, and team celebrations are just a few ways
we acknowledge and celebrate our achievements
together.
Professional Development
We are invested in the growth and development of our
employees and provide opportunities for ongoing
training, mentorship programs, and career advancement
to support the long-term success of our team.
We recognise the importance of providing comprehensive benefits to support the wellbeing and satisfaction of our employees. Our benefits package reflects our commitment to their overall health, wellbeing and work-life balance.
This includes, Health Cash Plan, Death in Service, Additional Holiday, Paid Sick Leave, Additional Day Off for Birthdays, and Wellbeing Days.
Thank you to Mike for chatting with us for this blog. You can check out the Leeds Credit Union website for more info.
