If your business offers employees a salary advance scheme, you might wonder if you need an on-demand pay solution like Earnipay. The short answer is that giving employees flexible access to their salaries ahead of payday doesn’t have to cost you.
Let’s talk about salary advances and how it affects your business.
A salary advance or wage advance is an employer’s advance of salary to an employee before payday. It was introduced so that workers didn’t need to go to payday lenders when they were strapped for cash. It is a way for employers to ensure that employees are not shortchanged and can continue working comfortably, provided they reimburse the employer later on.
Salary advance schemes are sometimes known as payroll borrowing or getting a payday loan from your employer. It is not necessarily a wellness package and employees will have to apply for an advance and get it approved by their employer before they receive the funds requested. But this process directly affects the company’s cash flow, and the requests can be unplanned, so they may not have enough money to fund these advances.
On the other hand, on-demand pay allows employees to earn as they work, usually daily, and the fun thing about this is that they can access their salaries whenever they want. Notice the key difference here between salary advance and on-demand pay is flexibility. Employees have their finances in their hands, and they can make plans with what they’ve earned without needing to request funds and borrow from their employer.
Here’s how on-demand pay benefits you as an employer:
Increased employee productivity – When employees know that their money will be there when they need it, they are more likely to work harder and be more productive to boost their earnings potential. They will meet their financial goals quicker than if they were waiting for regular paychecks every month.
Employee loyalty and engagement – Employees who feel valued by their employers are more likely to stay with their company and do their best work. Offering on-demand pay as part of your benefits package encourages employees to be loyal and more productive.
Reduced turnover rates -Employees who have easy access to their earned pay at any time are more likely to stay at their jobs longer than those who are paid once a month or rely only on salary advances. This is especially true if they’re already planning on taking time off; it’s much easier for them to do so if they don’t have to worry about losing paychecks while they’re out on leave.
On-demand pay is the next big thing as employees need more flexibility, and employers are looking to attract and retain their employees with the top benefits. At Earnipay, we are dedicated to ensuring financial wellness for all income earners in Africa. We offer employees flexible and on-demand access to their earned salaries whenever they need it.
Here are some advantages of getting Earnipay for your business:
- Let’s you offer a zero cost employee benefit that helps unlock a more productive workforce
- Removes the need for salary advances, meaning that you no longer have to eat into your cash flow
- You get an all-in-one dashboard and enjoy automated payroll reconciliations at the end of each month
By giving employees the gift of access, you allow them to make more responsible decisions with their money by matching their income with their expenses. Offering Earnipay’s on-demand salary access as a benefit for employees to cash in up to 50% of their earnings as they work and ahead of payday has been proven to help employees feel more confident and in control of their financial health.
You can offer Earnipay as an employee benefit and easily integrate the solution into your existing payroll process at ZERO cost. What’s even better is that it only costs your employees a flat and fair processing fee of between ₦250 – ₦500. They also gain access to Mint, our financial wellness resource program that helps them better plan, budget, save and invest.