Cardiff sets the standard for staff financial well-being

Cardiff and Vale Credit Union has reached a new milestone signing up its 50^th employer to become a payroll savings and loans scheme partner.

Cardiff University has joined the ever-expanding group of employers across Cardiff and the Vale of Glamorgan prioritising the financial health of their staff and benefitting the local community.

Professor Colin Riordan, Vice-Chancellor of Cardiff University, stated: “As one of Cardiff’s anchor institutions and the responsible employer of more than 7,000 staff, we recognise how important it is to support the financial wellbeing of our people.

This is more vital than ever after a pandemic year in which colleagues may have experienced reduced earnings through the furlough scheme or even job losses within their households. That is why we have decided to expand our suite of support initiatives to include safe saving and generous borrowing schemes as a member of the Cardiff and Vale Credit Union.

Membership will be a complementary addition to our suite of Health and Wellbeing initiatives and one I hope will help colleagues navigate the remaining challenges of the pandemic into the future.”

Helping employees across Cardiff and the Vale of Glamorgan build financial resilience by accessing ethical savings and affordable credit is a priority for the credit union, in its mission to help local people recover from the economic impact of the pandemic.

The credit union’s Chief Executive Leanne Herberg said: “We are delighted that Cardiff University is joining other responsible employers in partnering with us to support their staff.  

Offering employees the option to become a credit union member and save directly from salary is a strong perk of employment, helping build resilience  for whatever lies ahead, such as unexpected emergencies or a big life event such as a wedding.” 

The credit union has more than 10,000 members, with combined savings of over £8 million and more than £3 million in loans to those members who want to access affordable credit.”

Partners already working with the credit union include Cardiff Council, Cardiff & Vale NHS, Legal & General, Welsh Water, Welsh Government and Admiral. A combined 3,500 employees currently benefit from the scheme, which enables them to save – or repay loans – directly from their salary.

The ease of saving or making repayments directly from salary helps many staff develop a savings habit, as Lindsey Dyson, a Customer Accounts Trainer for Admiral, explained: “I was paying off a loan at £200 per month and when it was fully paid, I decided to save that same amount that I had already budgeted out of my wage into savings.

Having it paid straight into my savings account from my employer was another plus as I didn’t even miss it and, over time, it helped me to become a homeowner!”

Since becoming a partner in 2014, over 500 Admiral employees have benefited from the partnership including nearly 300 current employees.  

While many staff and employers deal with the financial impact of the Covid pandemic, there is evidence that including employee financial wellbeing as part of a company’s staff benefit strategy can help reduce stress and related absenteeism, increasing productivity and talent retention within Welsh organisations.

The Chartered Institute of Personnel and Development (CIPD) found that one in five employees regularly lost sleep due to money worries, and in 2020 the Money and Pension Service found that employees with high financial stress took around twice as many days of sick leave.

Leanne added: “Feeling confident and empowered about personal finances is strongly linked to positive mental health and effectiveness at work. Money worries can cause stress at all salary levels, age and demographics.

We make it easy for employees to save directly from their salary, with an amount of their choice transferred to their credit union savings account each month. For those who borrow from us, loan repayments are transferred along with the savings, making it as easy as possible to build a regular savings habit and borrow safely and affordably if they need to.”

Employers are not involved in or informed about loan applications made by their staff, and details of any loans repaid from salary are not shared with employers.”

With an eye on the financial impact that the pandemic has had on many workers across Wales, the credit union is looking for additional ways to support their members at work. This includes a joint initiative with Money Saviour, a local money advice social enterprise, to offer ‘Money MOT’ webinars for staff of the credit union’s employer partners, beginning with Admiral employees this autumn. The sessions will cover budgeting, income maximisation, saving and accessing credit.

The credit union is keen for more employers to become partners. Leanne said: “We know that employers partnering with us can make an enormous difference to the lives of staff who want to improve their finances. It also supports the local community and Welsh economy by keeping money local.  

There is no charge to employers and it’s simple to administer.  Our vision is for all workers in Wales to have the option to benefit from credit union membership as a perk of their employment.”

info@cardiffcu.com