Wed, 1 Jun 2011

Employers fail to promote benefits of payroll giving

Employers are not doing enough to promote payroll giving schemes, according to MPs, business leaders and payroll giving experts.

The issue was raised during a Public Administration Select Committee meeting last month by MP Nick de Bois, who sought to address why such schemes are not more successful, saying that payroll is an easy way to donate.

Giving evidence, Chris Blackhurst, City editor of the London Evening Standard, said employers must take the lead. ‘If you know your boss gives 5%, you’re more likely to follow suit.’

Sir Sandy Crombie, senior independent director of the Royal Bank of Scotland, where 10% of staff have signed up to a scheme, said top-down enforcement is not the answer. ‘Is it right that chief executives say: “I’m giving through my payroll, therefore so should you?”’

Commenting after the meeting, Jeremy Colwill, director of Payroll Giving in Action, agreed that employers could do more. He told Payroll World: ‘It’s a good thing if a chief executive says: “I support this” because the choice is still there for the employee. If the employee isn’t aware [of the scheme], it’s never going to take off.’

Elena Joseph, head of new projects at Workplace Giving UK, said employers could encourage employees by match-funding donations. ‘The message it gives to the employee is that the company wants to encourage charitable giving and will give a little extra to the cause that is important to them,’ she told Payroll World.

Only 1% of the total amount donated to charitable causes in the UK comes through payroll giving, according to The Charities Aid Foundation.