On-Demand Pay in Nigeria

An Employer’s Guide to Implementing On-Demand Pay: A Case Study of Pomegranate.

On-demand pay is a new approach to employee compensation that has gained popularity in recent years. It allows employees to access their earned salaries before payday, enabling them to better manage their finances and avoid costly borrowing options like payday loans.

This Pomegranate case study delves into the company’s challenges before using the on-demand pay solution and how it could mitigate this and record a successful outcome. Let’s dive right in.

What challenges did Pomegranate face?

Prior to implementing Earnipay’s on-demand pay product, some of the issues Pomegranate include:

Increase in loan and salary advance requests: Without access to their earned salaries before payday, employees frequently requested loans or salary advances from the company, which strained the company’s financial resources and administrative workload.

Reduced productivity: Studies show that financial stress and worry can lead to reduced productivity, which can have a negative impact on the company’s overall performance. Pomegranate employees couldn’t give their best at work because they were constantly worried about money.

Difficulty in retaining employees: Limited financial flexibility caused employees to feel undervalued and disengaged from the company, which increased the employee turnover rate and cost the company in recruitment and training expenses.

Inability to attract top talent: A lack of flexible and innovative compensation options, such as on-demand pay, made it difficult for Pomegranate to attract top talent in a competitive job market. This limited the company’s ability to grow and expand its operations.

What were some of the solutions Pomegranate implemented?

Having recognised these challenges, Pomegranate stepped up to proffer solutions such as:

Offering traditional loans: Pomegranate offered traditional loans to employees who requested salary advances. However, this put a strain on the company’s financial resources and required significant administrative work to track the loans and payments.

Implementing a flexible pay schedule: Pomegranate tried to address the issue of delayed payment by implementing a more flexible payment schedule, such as paying employees bi-weekly instead of monthly. However, this only addressed the issue partially and created other administrative challenges.

Offering financial counselling: Pomegranate offered financial counselling to employees to help them manage their finances better. However, this did not address the root cause of the problem, which was the 28-day wait period before payday, which didn’t grant employees access to cash flow.

Increasing employee benefits: Pomegranate tried to address the issue of delayed payment by increasing employee benefits, such as healthcare, retirement, or paid time off. However, these benefits did not provide employees with the immediate financial relief that on-demand pay offers

After unsatisfactory attempts with these solutions, Pomegranate recognised the benefits of on-demand pay and implemented Earnipay’s on-demand pay product for their employees.

Life after signing up for the Earnipay on-demand pay solution

By signing up on Earnipay, Pomegranate is offering her employees one of the leading employee benefits in the workplace at zero cost to the business.

Salary advances and loan requests have dropped drastically by 67% at Pomegranate as employees now can access their earned salary to care for their immediate needs.

Pomegranate has recorded a 72% increase in productivity as employees can focus on delivering their best work without feeling overwhelmed with money worries. This has significantly improved the bottom line of the company.

Pomegranate has saved her employees from predatory loans or other forms of credit. These types of loans typically come with high-interest rates and hidden fees, which can quickly spiral out of control and lead to financial ruin. With the on-demand pay solution, employees can access their earned salaries at no additional cost, avoiding these types of loans and building their savings over time.

Implementing on-demand pay has also helped Pomegranate enhance its reputation as an employer. By providing their employees with access to a flexible and innovative compensation option, Pomegranate has shown that they value their employees’ financial well-being and are committed to helping them achieve financial stability.

Pomegranate onboarding experience:

Step 1: Indicating Interest and Signing the SLA

The process began with Pomegranate indicating their interest in our on-demand pay product by contacting us via email at sales@earnipay.com. We then shared the Service Level Agreement (SLA) with Pomegranate, which outlines the terms and conditions of the product. Pomegranate reviewed and signed the SLA to proceed to the next step.

Step 2: Signing Up on the Dashboard and Provide Bank Statement

After signing the SLA, Pomegranate was directed to sign up on the Employer dashboard, where they provided their 6-month bank statement. This is a necessary step to enable us to verify and approve their account. The process was seamless, and Pomegranate could complete it within a few minutes.

Step 3: Account Approval

Once Pomegranate provided their bank statement, we reviewed and approved their account. This ensured that Pomegranate could use the on-demand pay solution for their employees.

Step 4: Employee List Uploads

Pomegranate then provided a list of their employees for upload, and we verified the employees’ details and set up their accounts within a short time.

The process was smooth, and Pomegranate could easily implement the on-demand pay solution for their employees. 

Key Takeaway

In conclusion, implementing on-demand pay is an excellent way for employers to promote financial wellness among their employees. By providing a flexible and innovative compensation option, employers can reduce financial stress, increase productivity and loyalty, and enhance their reputation as an employer. If you’re an employer looking to implement on-demand pay for your employees, like Pomegranate, choose Earnipay, and book a demo.

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