In a bid to bolster financial security among its workforce, Co-op is set to broaden its automated savings scheme, initially trialled with success.
This innovative scheme, developed in collaboration with Nest Insight, aims to enhance financial resilience by automatically setting aside part of employees’ wages into savings. The strategy allows colleagues to passively accumulate savings each month unless they actively decide to opt-out, thus fostering a culture of saving with minimal effort. Importantly, the savings are accessible without any fees or penalties, providing flexibility for the employees.
The trial phase has yielded promising results, with a notable 70% of participants choosing to save. As a result, Co-op is preparing to extend this scheme to a larger segment of its workforce in the coming months. The focus will particularly be on frontline employees who often face financial uncertainties. After four months of participation, the average savings reached £100, doubling to £200 by the eighth month, demonstrating the scheme’s tangible impact on the employees’ financial health.
The company’s chief people and inclusion officer, Claire Costello, emphasised the significance of this initiative by stating, “Our colleagues told us they needed help to start saving, especially for the unexpected, and autosave has proven to be a simple but powerful way to offer that support. We’re preparing to make this scheme available to thousands more colleagues as we continue to roll it out, because we’ve seen the difference it makes in helping people feel secure, confident, and in control of their finances.”
Co-op is not only expanding the scheme within its own operations but is also urging other UK employers to adopt similar measures to aid their employees in building savings. Moreover, Co-op is advocating for government intervention to support these savings efforts, recognising that businesses have a critical role in advancing social mobility through economic empowerment. “By making colleague financial wellbeing a core priority, we’re also taking action on social mobility, a crucial ambition for Co-op and one that’s central to our vision. As employers, we have a vital role to play in creating a workplace that empowers growth, and I’m proud that Co-op is leading on this,” Costello added.
This expansion of Co-op’s savings scheme highlights a forward-thinking approach to employee financial wellbeing, encouraging similar strategies across industries.
