Every employer in Scotland should partner with a credit union
In todays’ fiercely competitive market place, employers need to find new, cost effective, and innovative ways to set themselves apart.
What better way to do this than providing a benefit that not only appeals to your employees, but is also good for your business and your community. Credit unions have been around for decades, but only now are Scottish businesses starting to understand the real benefit they can provide.
Glasgow Credit Union is one of the UK’s largest and most successful credit unions. Here we highlight 4 reasons why every employer in Scotland should join the credit union revolution:
1. It’s a FREE employee benefit
Along with competitive pay and a good working environment, employees consistently cite an attractive benefits package as an important factor in their decision of where to work. While benefits like holiday allowance and flexible working cost money to employers, partnering with a reputable credit union won’t cost a penny – but adds lots of value for employees.
Credit unions provide a range of financial services, from easy access savings accounts, to low rate personal loans and mortgages – and through Employer Partner schemes, employees can access these services directly via their salary.
The process of setting up a partnership with a credit union is simple and as well as providing promotional material such as posters, newsletters, web content, and leaflets, credit unions can also offer free resources for employees such as financial education workshops, and budgeting literature.
2. They’re championed by the Scottish Government and Chartered Institute of Payroll Partners
It’s not just people within the credit union industry that are singing the praises of employer/credit union partnerships.
The Scottish Government also champion credit unions as an alternative to high street lenders and a way out of high cost credit for employees trapped in the cycle of payday loans. In 2016, they produced a publication entitled ‘Scotland’s Credit Unions: Investing in Our Future’, in which they encourage all employers to offer the services of a credit union as a standard workplace benefit.
The First Minister took the step of writing to Scottish employers, to highlight the benefits of credit union membership and to urge them to set up a partnership scheme with ‘a view to improve financial health and boost the productivity of Scotland’s businesses’.
The Chartered Institute of Payroll Professionals (CIPP) are also actively working to increase the number of partnerships throughout UK employers and have developed an Employer Engagement Standard.
3. Credit unions make employees more productive
In countries such as the USA, Canada, and Australia, where credit union employer partnerships are commonplace, it is widely recognised that there is a direct link between employees’ financial wellbeing and their productivity (source: The Filene Institute).
A financially stable workforce results in less absenteeism, less turnover in staff, and lower employer benefits costs. In other words – partnering with a credit union can have a positive impact for any company.
4. Credit unions can help meet your Corporate Social Responsibility objectives
Credit unions are social enterprises so their over-arching ethos is to improve their community through financial empowerment and education. By partnering with a credit union, employers are sharing and investing in this ethos. The services offered to employees help to increase their financial capability, but more than that, a portion of the profits generated by the credit union are invested back into their local community.
Credit unions are financial mutuals owned by their members, which creates a level of trust between the organisation and the member not found with other financial institutions. Employers can trust that their staff’s financial wellbeing will be put ahead of the credit union’s profit margin – again, helping to meet CSR objectives.
If your organisation is based within the UK, your employees are eligible to join Glasgow Credit Union.
Contact Paul Rytel, Business Development Executive, on 0141 274 5415 to discuss how Glasgow Credit Union could enhance your employee benefits package.
Please check first that you are eligible to apply:
You are aged 18 or over
You have a UK bank account in your own or joint names
You are a permanent UK resident
You have never been bankrupt or had a Court Decree
To complete your application you will need:
Your current employer's address details
Details of monthly income and outgoings
Bank or building society details (sort code and account number)
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Please be aware that the longer you take to pay back a loan, the more you will pay back in interest. If you go for a shorter term your monthly repayment might go up, but you'll save in interest and pay back your loan faster.