A joint research project between PayCaptain, the London-based payroll service provider, and the Behavioural Insights Team has uncovered new findings on employees’ barriers to saving.
With economic pressures on employees continuing to increase and one million households expected to have run out of savings by the end of 2023, the research has uncovered behavioural biases, security concerns and financial overwhelm as key reasons why employees are failing to save. The research also demonstrates the crucial role that employers must play in promoting and facilitating saving amongst their employees to support them in becoming more financially resilient.
Key findings from 3046 survey respondents were:
- 73% of under 55s said they would use savings tools if offered by their employer
- 67% said they would like to enrol in a workplace pension immediately on starting a new job most employers have a 3 month waiting period before an employee can join their pension, for particularly mobile employees this also reduces their opportunity to build retirement savings
- 70% said they wanted an easy way to start saving via their payroll
- Breaking down savings to daily amounts reduces financial overwhelm, making savings more accessible
PayCaptain, the world’s first B Corporation payroll company, was launched in 2020 with big aspirations to help employees improve their financial wellbeing. In conjunction with the Behavioural Insights Team, PayCaptain has leveraged evidence-based principles to help employers of choice to play a central role in promoting and facilitating saving amongst their employees.
Founder and CEO of PayCaptain, Simon Bocca, says, “I’m delighted that this project has resulted in even deeper understanding of employees’ barriers to saving. People are struggling and employers need to offer payroll savings tools built with overcoming behavioural bias and ease of use in mind. This research lets us take payroll saving to a new level.”
Senior Advisor at the Behavioural Insights Team, Ellie Lugt, says, “Employers have an important role to play in supporting their employees’ financial resilience. Applying behavioural science to digital tools and customer journeys can make it easier for employees to make timely, positive financial decisions in ways that work for them, without taking away their freedom to choose a different course of action.
PayCaptain Payroll Solutions Limited, www.paycaptain.com is a Payroll/FinTech company that delivers a fully automated cloud payroll service. The solution contains many unique and innovative features for employees, helping them to take control of their pay and increase their financial wellbeing. PayCaptain incorporates functionality that is specifically designed to positively impact financial resilience for people struggling with money, or vulnerable and low-income employees.
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PayCaptain is HMRC-approved Payroll software and was created to radically improve the payroll process. It combines payroll, banking and wellness tools, allowing employers to support and empower their employees to take control of their finances to achieve greater financial wellbeing.
Payroll with PayCaptain:
- Fully automated cloud payroll software with flexible bureau services
- Transforms the payroll experience for employees
- Helps payroll professionals to add greater value to their company with smart and intuitive technology
- Enables employers to ensure payroll is on brand and aligned with company values.
PayCaptain’s aim is to improve the financial resilience of the nation and reduce the negative effects of financial stress in the workplace. As a B-Corporation, PayCaptain delivers positive outcomes for customers and their employees.
PayCaptain is the current holder of the Chartered Institute of Payroll Professionals Software Product of the Year award. PayCaptain is the holder of two B Corp ‘Best for the World’ awards for being in the top 5% of highest scorers within both the Workers and Governance impact areas in the B Corporation Impact Assessment. The company has also been recognised in consecutive years as an Escape 100 organisation, achieving 7th place in 2023 out of over 13,500 businesses nominated.
PayCaptain is registered with the Financial Conduct Authority as an EMD Agent of PayrNet. PayCaptain provides payment services, facilitates business transactions and currency exchanges. Money held in PayCaptain accounts is safeguarded with regulated credit institutions in the UK, in accordance with e-money regulations. All card transactions are processed by the Visa network and is protected by Visa Scheme rules.
About the Behavioural Insights Team
The Behavioural Insights Team (BIT) is one of the world’s leading behavioural science consultancies, working around the world to deliver social impact and improve people’s lives.
BIT works in partnership with governments, local authorities, businesses and NGOs in over 70 countries, often using simple changes to tackle major policy problems and deliver improved public services and social outcomes.
BIT was established by the UK government in 2010. In 2014 it became an independent social purpose company, part owned by the Cabinet Office and innovation charity Nesta, and since 2021 has been entirely owned by Nesta.