On-demand pay is a term now frequently used in the business world. Many workers see it as a solution to their financial hardships.
An average Nigerian individual needs about ₦43,200 to survive in a month, as stated in research conducted by Statista in August 2022, and a Nigerian family needs about ₦137,600. This estimate does not fit well with the ₦30,000 minimum wage. Most workers need to find a side hustle to make up for their expenses, while most must find better ways to manage their finances.
The effects of the employees’ financial hardships on the business’s growth are not something to be taken lightly. Many deals have been lost because an employee has divided attention caused by the distraction from thinking about ways to sort out their financial hardships.
What business owners are doing now
Businesses are looking for ways to change their workplace dynamics. Many policies and benefits are being looked into to help the development of the workplace. Business owners are devoting their attention to the financial wellness of their employees. Most businesses now think taking their employees’ financial wellness seriously is necessary as they have recognized its role in developing their businesses.
One fast-rising method with which employers offer financial wellness to their employees is on-demand pay. With on-demand pay, employees can access their earned wages as they work and will not have to wait for the traditional method of receiving their salaries four weeks after their last payday.
What is on-demand pay, and how does it relate to an employee’s financial wellness?
On-demand pay, also known as instant pay, is a flexible method of payment where workers can request their earned wages before the actual payday. That is, they can withdraw the money they have earned over the days they have worked.
Suppose a worker earns about ₦200,000 a month. They do not have to wait till the end of the month to collect the earnings in total. All the employee has to do is calculate the wages earned for the number of days they have worked and initiate a withdrawal of a certain percentage. This way, the employee can see to their emergency needs.
Emergency expenses are a problem affecting employees’ financial wellness in the workplace. Many employees are forced to take payday loans with high interest at the risk of being unable to pay on time. The thoughts of how to repay the loans can negatively affect their mental health, which can translate into their work habit.
As an employer, you must welcome ideas to help maintain your employees’ financial wellness so your business can grow. Introducing On-demand pay as a payment option to your employees is one way to go about it.
How do I join the On-demand pay movement as an employer?
Many third-party payment services now offer on-demand pay as one of their services. You can easily register with them online and let them handle your employees’ payments. An example of an online payment service that offers on-demand pay as one of its services is Earnipay. With Earnipay, you can onboard your employees to their platform to enjoy the on-demand pay service in just a few steps.
You do not have to stress yourself or your accounting department handling the payment process. We will handle the payment process. All you need to do from your company’s side is to supply us with the necessary payment information for each employee. We will invite all your employees to bring them on board the app so they can enjoy on-demand pay.
What to seek when considering implementing on-demand pay
Before knowing if on-demand pay is for you, you must look at your company. Many companies might not be able to implement the payment option due to the company’s size or the cost of implementing on-demand pay as an option in their payroll system.
Here are a few questions to ask when choosing the on-demand pay option;
- How much does it cost employees? Different on-demand services have different ways with which they charge users for withdrawals. Some allow flexibility in their service charge. That is, an employer can choose to handle the transaction charges. They can also choose to share the cost with the employee or make the employee pay for the charges.
- Does it offer employee wellness education? Financial planning is another essential tool for financial wellness. Some on-demand service providers offer educational materials to help users plan their finances.
- Does it help set employees up for financial success? Some on-demand pay service providers offer tools to help users achieve their financial goals. Some offer them investment plans, savings plans, and many other ways to help them grow their finances.
The Bottom Line
On-demand pay is now a widely accepted payment option by employers and many employees. It is a proven solution for employees’ financial wellness, so many CEOs and HRs are implementing the payment option in their payroll system. It is easily implemented and comes with many benefits.
Earnipay’s on-demand pay product allows you, as a business owner, to provide your employees with the option of on-demand pay with no stress. Our program will handle the payment method with no room for human error. You can head to earnipay.com to sign up and join other businesses to ensure your employees’ financial wellness.