New research from the Chartered Institute of Payroll Professionals (CIPP) has revealed that on the whole, payroll professionals are open-minded to payroll giving schemes.
The CIPP Payroll Giving Schemes survey found that nearly three-quarters (73%) of respondents who participated in the research operated payroll giving within their companies. Furthermore, of those who do not run a scheme, 18% said they are considering implementing one in the foreseeable future and more than half (55%) said they would maybe consider it.
Of the 27% of respondents who said that they do not run a scheme, nearly two-thirds (63%) of payroll professionals foresee a lack of employee engagement as the main barrier for its success. More than half (53%) identify the uncertainty around the administration process as a reason for not operating a scheme and more than a third (37%) pinpoint the cost of running a scheme as a major impediment.
However, more encouraging are the reasons identified by payroll departments for currently running or considering operating a scheme. Two-fifths (41%) said that their employees have requested a payroll giving scheme, more than a third (37%) commented that it is to provide a tax saving to workers and a third (33%) thought it requires a minimum amount of administration work but is a benefit to employees and charities.
Karen Thomson, Associate Director of Policy, Research and Strategic Visibility at the CIPP and a judge at the 2011 National Payroll Giving Excellence Awards, said: “I am impressed by the number of CIPP members who responded to our survey who said that they currently operate a payroll giving scheme, as well as those who are considering implementing one in the near future.
“However, it appears that one of the main obstacles that prevent organisations from operating a scheme is due to the lack of understanding and communication around the process. I encourage payroll departments to speak to their employers about what implementing a payroll giving scheme entails and whether it would be a feasible option for the company.
“Furthermore, payroll departments should also speak to their employees about the benefits of payroll giving for both the company and charity involved, especially the applicable tax deductions. Payroll giving is a fantastic and cost-effective way for employees to provide charitable donations to the causes they care about.
“For more information on the administration around running a scheme, there are many resources available from HM Revenue & Customs, the Payroll Giving Centre and the Geared for Giving Campaign that will help simplify the process. Alternatively, if you are a CIPP member, you can call our Advisory Service on 0845 130 4776, we will be more than happy to provide you with the information you need.”
Rosie Runciman, Campaign Manager at the Geared for Giving Campaign, very much welcomes the CIPP survey. She commented: “We are not surprised to find that 63% of respondents who admit that they do not run a payroll giving scheme cite a lack of employee engagement as the main barrier for its success.
“The Campaign isn’t just about encouraging more companies to offer the scheme; it is about ensuring that those who do communicate it effectively with their workforce. Many employees aren’t even aware that their employer offers this facility to enable them to give to their favourite causes so easily, and, even among employees who are aware that their employer has such a scheme, some aren’t always sure about how to take part.”
