This week (3-7 September) is National Payroll Week. Established by the CIPP (Chartered Institute of Payroll Professionals) as a way to raise the profile and awareness of Payroll in the UK, it helps to demonstrate the impact payroll has on the UK economy. Many people may only think about payroll when payday comes around but those within the industry live and breathe payroll and have had a big effect on the industry. Those working within payroll have helped contribute towards the £4.46bn collected through Income Tax and National Insurance each year.
As such we would like to celebrate all the hard work that not only our own payroll team do but also recognise all the continuing work within the industry in the UK which has contributed to a stronger financial community.
As well as recognising the hard work done by payroll professionals, one of the main objectives of National Payroll week is to inform and educate businesses and their employees about pay and pensions and other payroll related aspects. This makes it the perfect time to ensure that your employees are aware of how their pension works.
Recent statistics have shown that employee engagement with their pensions is very low, with younger employees in particular feeling that they do not know enough about how pensions work and how they could be affected in later life. For many younger workers their retirement seems such a far off matter that they do not consider finding out more information and instead they may focus more on pressing financial concerns such as living costs, education and buying property.
These financial concerns often burden younger workers who may bring their stress into the workplace affecting their productivity and engagement at work. Due to this it is vital that these employees get the support they need from employers in their saving and financial plans.
What can you do?
We have created some top tips to help employers in educating their staff and how you could provide support to all employees.
- National payroll week is the perfect opportunity to open a discussion about pensions and saving. As an annual event it allows employees the opportunity to review their pension, so they can stay well informed and be able to plan for their future. So why not make a day of it. Take a look at the CIPP website for great tips on how you and your staff can celebrate National Payroll Week: https://www.cipp.org.uk/events-main/npw-landing.html
- Allow employees to ask questions and find out more about your chosen pension scheme. If you do not feel you as an employer would be able to answer these questions or concerns, then consider contacting ER Grove and we would be happy to help you provide all the information needed.
- Some employees may be worried that it is too late for them to begin saving towards their pension but it’s never too late to start. They will also be able to benefit from the tax relief on contributions and investment growth. Plus the added bonus of knowing that their employer is supporting them by also contributing towards their savings.
National Payroll week is a great way of educating and informing workers. By engaging workers and providing more information, employees can make better plans regarding their future. As an employer you could see great benefits from this, however you should always be careful not provide information in a way which influences workers to take certain actions regarding their finances or advise them on tax and its implications.
If you would like more information regarding payroll and pensions for your employees, then please contact us for further details.
