We live in a world still slowly recovering from the effects of the COVID-19 pandemic that disrupted supply chains and triggered inflation. As a result, prices of goods and services are on the rise while the purchasing power of the average person continues to decline. Your competitive salary is now truly competing against a hike in the prices of all the goods and services you require monthly, and it is losing the fight.
This harsh reality has led to calls for a change in the current compensation structure for employees. Instead of waiting for “salary week,” employees now prefer to access a part of their accrued wages for the days they’ve worked before payday. This concept, known as on-demand pay in Nigeria, is gaining popularity as it provides workers the financial flexibility they need to manage rising expenses and unforeseen financial needs.
This allows workers to better manage their cash flow, especially in an economy where inflation continuously erodes purchasing power. Transitioning to on-demand pay not only supports employees in meeting their immediate financial needs but also enhances their overall financial well-being.
The Nigerian reality is that you are just one phone call away from an unplanned expense, it is easy to understand why this is happening.
Imagine your car starts overheating, and your mechanic says you need a new radiator because the engine overheated, burning the gasket and cracking the radiator. You have to pay for the repairs, but it’s the last week of the month, and you just spent money on a family “owambe.” Now, you have little money left and need to use public transport. You’ve worked almost a month but still have to wait until payday. If you fear danfos, you might take out a loan, causing ongoing financial stress.
On-demand pay lets you access earned salary before payday, helping you manage unexpected expenses without loans. This service offers a practical way to handle financial emergencies and break the cycle of financial stress.
According to a survey by the International Foundation of Employee Benefit Plans (IFEBP), 4 out of 5 employers say their employees’ financial issues are impacting job performance negatively. Employees who are financially stressed lose nearly one month of productive workdays per year and they are also two times more likely to seek a new job opportunity.
Earnipay solves this problem with a flexible salary solution that allows employees to track how much they’ve earned per day and allows them to access 50% of this accrued earnings at any particular time. Earnipay is the hack for increasing retention and boosting productivity in the workplace. The rationale is simple: financially free employees are more productive and less stressed.
If you are an employer looking to provide a perk that truly matters for your employees, visit our website; www.earnipay.com to get started.
Leave a Comment