Conversations about our money struggles are not the most convenient to have. When it comes to our financial worries, we always wish someone could understand how we feel and do something about it, and your employees feel this way, too, most of the time.
For instance, you’d hardly find any of your employees walking up to you to tell you about an outstanding loan or their inability to pay their bills, as they would not want to be perceived as having bad money habits. But with prices of necessities ramping up every day and pressing needs that might arise, your employees might have even wondered if they could get some of their salaries in advance to sort out some emergencies.
As an HR looking to improve your employees’ well-being, it is no news that your employees’ financial well-being can significantly impact their productivity. A survey shows that 80% of UK employees believe that financial stress has a negative impact on their work performance. Despite this, 66% of workers said they would be uncomfortable discussing their situation with their boss. Therefore, introducing on-demand pay as part of your employee benefits package would make them feel valued and cared about and offer a solution to one of their significant stressors- money. In this article, we will explore everything you need to know about on-demand pay and the myriad of benefits that come with taking advantage of it for your employees’ overall well-being.
What is on-demand pay?
First, when you hear on-demand pay, what comes to mind? If getting paid on demand was your first thought, you are right. On-demand, pay is an employee payment method that allows employees access to some or all of the wages they’ve earned. On-demand pay has revolutionized people’s pay by giving them total control over their earned wages. Instead of being subjected to a biweekly or monthly payment schedule, they can decide when to be paid the wages they’ve earned up to a specific limit.
To introduce this benefit, you would have to collaborate with payroll service providers whose systems are designed to allow employees to access their wages the day they are earned.
How does it benefit you and your employees?
Given its impressive benefits, the increasing popularity of On-demand pay in every part of the world should not be surprising. For example, survey in the US reveals that more than 60% of US workers want to be able to access their earnings before their regular paydays. Also, a study by Citizens Financial of 200 middle-market companies revealed that 71% already use EWA services in some capacity.
With what these suggests, examining some of the benefits on-demand pay offer to employers and employees would be worthwhile. They include;
- In a labour market that continuously competes for the best hands, on-demand pay can help your company attract top talents and retain existing ones.
- Companies that offer on-demand pay are likelier to have a more productive workforce since they are a significant employee stressor.
- Companies that offer on-demand pay are reputed for being attentive to employees’ needs and would appear to talents as a place to work for.
- It gives employees more control over their finances by being aware of their earnings accumulated over time.
- Employees can use their salaries instead of borrowing from loan apps to deal with unexpected expenses.
- On-demand pay serves as a means of relieving employees’ financial stress and improving their productivity at work.
How to get started with on-demand pay
The first step in providing this benefit is to partner with a reputable payroll service provider. Since you might be hesitant at first to have your employees’ pay go through a third party, you must use a reputable provider like Earnipay.
At Earnipay, we provide flexible salary access to company employees for a small fee payable upon withdrawal. Here’s how to get started with our on-demand pay solution
- Head over to our website and create an account.
- Upload all employee details, including their net salaries. Our algorithm prorates each employee’s net wage into daily payments.
- Your employees would be invited to sign up by downloading our app and have instant access to all our features.
- Once signed up, your employees can access 50% of their daily salaries by default. However, you can customize it by setting limits.
Like all company perks, on-demand benefits both the organization and the employee, even though the latter needs it more. Embracing on-demand pay would help improve company operations and improve your employees’ financial wellness, which would, in turn, drive productivity. Now that you’re aware of the many benefits this product offers, it’s time to take action, and you can start by visiting our website to learn about our on-demand pay offering.