Many employees worry about money. Saving is hard, especially when bills, rent and food take up most of their pay. Many employees don’t have anything left at the end of the month. Nearly half of all employees in the UK (49%) are said to live pay check to pay check.
This can cause stress, poor sleep and health problems. It also affects how people feel and work. When employees are worried about money, it’s hard to focus or stay positive at work.
Employee financial wellbeing matters. Feeling secure with money helps people stay calm, feel valued and do their best. It improves morale, reduces stress and helps with staff retention. For the business, it means fewer sick days, better focus and a more stable team.
One way to help is by making saving easier. This is where payroll steps up. A payroll savings scheme allows staff to save a small amount directly from their wages before it hits their bank. It’s a simple, low-effort way to build better money habits and help people feel more in control.
Why employees struggle to save and how payroll deduction savings can help
Many people want to save but find it difficult. Life is full of unexpected costs. A boiler breaks, a car needs repairs or a child needs new shoes. These surprise bills can wipe out savings in one go. For others, there’s simply nothing left after rent, food and travel. Even small savings feel out of reach when money is tight.
Some workers struggle with budgeting. They may never have been taught how to manage money. Without a clear plan, it’s easy to overspend. Others start with good intentions, but as soon as their wages hit the account, the money gets used. It’s the classic ‘out of sight, out of mind’ problem for bills and if money’s there, it gets spent.
This is where payroll saving comes in. It removes the hardest part - making the decision to save.
Payroll deduction savings work because:
- They’re automatic, so employees don’t need to think about it
- They reduce temptation, as money is saved before being ‘seen’
- They build good habits without effort
Saving becomes just another part of getting paid, like tax or pensions. It’s easy to set up through the PayCaptain mobile payroll app. It’s simple, steady and stress-free. Over time, it helps staff build up a pot they can rely on in emergencies or use for future goals. This makes them feel more secure, more confident and better able to focus at work.
Help employees build a savings habit that sticks
How do payroll savings work?
Payroll savings with PayCaptain are simple. An employee chooses how much they want to save each month. This amount is automatically taken from their net pay before it reaches their bank account. The money is then moved into a linked savings pot. It doesn’t have to be a lot. Even £10 or £20 a month can build up over time.
There’s no extra app or bank transfer needed. The savings happen automatically as part of the payroll process. Once it’s set up, the employee doesn’t have to do anything.
The savings are easy to view in the PayCaptain app. Employees can check their balance, change how much they save or stop saving whenever they like. The money stays in their name and can be accessed if needed.
PayCaptain’s payroll savings scheme is safe, flexible and easy to use. It’s designed to help employees build savings without stress. It removes the temptation to spend and makes regular saving a habit. For many, it’s the first step towards better money management and long-term financial wellbeing.
Give your employees the tools to build better money habits
How to encourage employees to join a payroll savings scheme
How clear communication encourages employees to join a payroll savings scheme
To boost take-up of payroll savings, good internal communication is key. Many employees won’t know the option exists unless the business explains it clearly. Others may not see the benefit unless it’s made simple and relevant.
Start by sharing how payroll savings work in plain language. Avoid jargon and focus on the benefits. Make it clear that employee saving schemes through payroll are easy, flexible and secure. Explain that even small amounts can make a big difference over time.
Use real examples where possible. If staff have already had success with the payroll savings scheme, ask if they’re willing to share their story. A short quote or video from a colleague can make the idea feel more relatable and achievable.
Use different channels to get the message out. Posters, messages on online payslips, team meetings and intranet pages all help. Keep the message positive. This isn’t just about saving money. It’s about reducing stress, building confidence and having a backup when life gets tough.
Include payroll savings scheme setup in onboarding and training
To increase take-up, businesses should include payroll savings in both onboarding and ongoing training. This helps employees understand the scheme from day one and reminds existing staff that the option is always available.
Here’s how to do it:
- Add a short section on payroll savings during induction
- Include simple step-by-step instructions on how to set up savings through PayCaptain
- Provide links to helpful resources in the employee handbook or intranet
- Walk through the PayCaptain app during training, showing how to view balances, change amounts or pause saving
- Offer refresher sessions throughout the year, either online or in person
- Include payroll deduction savings in wider financial wellbeing talks or events
Many people want to save but need support to get started. Training builds confidence and helps employees see this payroll pay and save functionality as a normal part of working life. It also shows the business is serious about helping staff manage money better.
Send regular reminders to promote payroll saving and employee participation
People often need more than one prompt to take action. Regular reminders help keep payroll savings top of mind. Without them, employees may forget the option exists of keep putting it off.
Use simple, friendly messages to remind staff they can start or increase their savings at any time. Include these in monthly emails, payslip notes or team updates. Repeat key points often. These include how easy it is to start and how even small amounts can build up.
Encouragement matters too. Celebrate savings milestones to show that progress is possible. This could be as simple as sharing how many staff have joined the scheme or how much has been saved across the business.
Here are a few ideas:
- Congratulate employees when they reach a savings goal
- Share anonymous success stats, like “Together, staff saved £10,000 last year”
- Run short campaigns during key moments like the New Year or financial wellbeing week
These small efforts help build a stronger savings culture across the workforce.
Tools and financial education to help employees engage with payroll savings schemes
Budgeting tools and apps to support payroll saving habits
Budgeting is a skill many people have never been taught. Employers can support staff by giving them access to simple budgeting tools and apps. These help people see where their money goes and spot areas where they can save.
There are many free tools available, like the MoneyHelper Budget Planner. This lets users enter their income and spending, then gives a clear picture of what’s left. It also helps people set goals, like saving for emergencies or paying off debt.
Employers can:
- Share links to trusted budgeting tools on the intranet
- Include app suggestions in onboarding packs or financial wellbeing emails
- Offer short training sessions to show how to use them
- Encourage staff to review their budget regularly
When employees understand their spending, they feel more in control. They can plan better, avoid overspending and find extra money to put into payroll savings. Budgeting tools turn good intentions into action. They help employees build stronger financial habits over time.
Discover payroll savings tools that help employees budget, plan and save with confidence
Host financial literacy workshops to boost payroll savings scheme take-up
Financial literacy workshops can make a big difference. They give employees the chance to learn useful skills like how to budget, how to save and what to think about when investing. Many people want to make better money choices but don't know where to start. Workshops provide a safe space to ask questions and build confidence.
Businesses can:
- Run short sessions on topics like saving tips, managing debt or planning for the future
- Invite trusted experts, like financial advisers, to speak
- Offer sessions both in person and online to suit different working patterns
- Make workshops part of wider wellbeing programmes
Where possible, include options for personalised support. Everyone’s situation is different. Some may need help with credit cards, others with planning for a big life change. Signposting to financial guidance services or offering one-to-one advice through external partners can help meet individual needs.
Workshops build knowledge and trust. They show that the business cares and wants to help employees take control of their money.
Provide access to financial advisors to support payroll saving and long-term planning
Giving employees access to financial advisors helps them plan for the long term. It offers a chance to talk through money goals, ask questions and get expert guidance. Many people don’t know where to start with pensions, savings or investing. An advisor can explain things clearly and help make a plan that suits each person’s needs.
Businesses can partner with financial wellbeing providers or independent advisors to offer this support. Some may also choose to bring in advisors for drop-in sessions or one-to-one chats.
This kind of help builds confidence and reduces stress. It also supports better decision-making and is a simple step that can have a lasting impact.
Payroll saving with a difference – smarter saving with SmartPay
SmartPay is a different kind of payroll savings tool. It doesn’t just move money into a savings account. SmartPay helps employees take meaningful action towards their financial goals, with guidance that fits their personal situation.
Unlike normal payroll deduction savings, SmartPay offers personalised support that fits each employee’s timing. It also considers their income, goals and financial habits. It's built directly into PayCaptain’s payroll software, making it simple and seamless for employees to engage.
And it works. One client saw the number of employees saving increase by 229% after introducing SmartPay. When saving feels relevant, easy and timely, more people take part. And stick with it.
SmartPay helps build long-term financial wellbeing in a way that’s more even more personalised than traditional payroll savings options.
Discover the smarter way to save through payroll
Use personalised saving prompts to support payroll savings habits
SmartPay helps employees build strong savings habits by meeting them where they are. It doesn’t rely on fixed schedules or generic advice. Instead, it uses real-time payroll data to spot the right moments to act. SmartPay responds with timely, helpful prompts.
These prompts are tailored to each person. They reflect what’s going on in their financial life, so the support feels achievable and relevant. For example, SmartPay can:
- Suggest starting to save after a pay rise or bonus
- Recommend increasing savings once a loan is paid off
- Encourage saving when spending patterns allow
This removes the pressure to get everything right all at once. Instead, SmartPay helps employees take small, steady steps that lead to long-term change.
It’s this personalised, flexible approach that makes SmartPay incredibly effective.
Integrated payroll savings features that make saving easy and effective
SmartPay is fully integrated into PayCaptain’s payroll software, which means there’s no extra setup, no separate app and no need to move money manually. Saving becomes part of getting paid, just like tax or pension contributions.
Employees can manage everything in one place, directly through the PayCaptain app. They can:
- Set and change how much they save
- Create multiple savings pots for different goals
- Track progress and make changes any time
Each savings pot is held in an interest-bearing savings account. These accounts are FSCS and FCA protected, giving employees the security of a regulated financial product. PayCaptain is the only UK payroll provider offering this level of protection and competitive interest rates. It’s all part of the payroll experience.
This makes saving feel easy, safe and rewarding. SmartPay removes the barriers and puts employees in control, helping them build strong financial foundations more easily.
Boost confidence, reduce stress and support smarter saving habits
Final thoughts from PayCaptain
Financial wellbeing should be part of everyday working life. When employees feel more in control of their money, they’re less stressed, more focused and better able to plan for the future. An employee savings scheme through payroll makes this easier. It turns good intentions into action, helping people build healthy habits without extra effort.
Many people find it hard to save money. Bills, food and other costs come first. This can make them feel stressed. When employees feel better about money, they’re happier, healthier and do better at work.
Helping staff save doesn’t cost a lot. But it makes a big difference. For employers, supporting financial wellbeing means a happier, healthier and more productive team. It also strengthens staff loyalty and trust.
Ready to turn financial stress into long-term confidence?
