It is known that money worries are the top source of employee stress. According to research by PwC, when employees experience financial struggles, they are hardly able to “leave it at the door.” In fact, 77% of employees with financial worries admit that they spend up to six working hours a week thinking or dealing with issues relating to their personal finances and resulting in dampened productivity at work.
When employees struggle with their finances, it may also lead them to take out loans in order to solve the problem, which could then result in them entering into debt cycles. Some of these online lenders give soft loans within a relatively short period of time and this has made them attractive to thousands of borrowers.
However, scores of unprofessional online lenders have in recent years deployed very crooked and illegal means to recover loans from those they consider chronic debtors. Sometimes, they employ crude and illegal means to embarrass clients who fail to repay their loans after a few days.
On-demand pay is here to change the game – On-demand pay is an employee payment method in which employees can receive their wages as they earn them.
The pros of on-demand pay for employees include:
- Quicker payments: With on-demand payments, employees don’t have to wait until their next payday for money. This flexibility allows employees to receive, save and spend their money on their own schedule.
- A financial safety net: If an employee is suddenly facing unexpected bills or other urgent payments, on-demand pay can help the employee quickly cover these expenses.
The advantages of on-demand pay for employers include:
- Better employee retention rates: Employees whose employer has implemented on-demand pay may interpret this offering as proof that the employer cares about their well-being. As such, employees may feel less compelled to leave the employer.
- More productive employees: Studies have shown that personal finance challenges can distract employees. Offering on-demand pay may give employees a larger financial safety net and thus limit this distraction.
Employees are better equipped to manage their expenses and debts properly when they have a Flexible Salary Access solution. Earnipay is one of the leading solutions changing the game on how salaries are earned.
Earnipay does this by providing a solution that partners with employers to offer employees flexible access to their earned pay. This means that employees can access up to 50% of the money they’ve worked for in their bank accounts at any time before payday. This helps them stay within budget and avoid payday loan cycles.
It’s time to ditch the loan apps and say hello to On-demand pay, if you are an employee, refer Earnipay to your employer at ww.earnipay.com. If you are an employer, one of the best perks you can give your employees is freedom from debt cycles. Request a demo here.