Being a Nigerian in the 21st century, you must have heard the word “On-demand pay”, but there is a high chance that you don’t know the concept behind it. The good news is that you have just come across the article that will give you everything you need to know about on-demand pay and point you in the right direction on how to get started.
Life often presents us with unexpected emergencies that demand immediate attention. Whether it’s sudden medical bills, unexpected tuition fee increases, or household appliance repairs, these emergencies can arise when we least expect them.
Most times, these emergencies hit when your payday is far. At such times, you have no means to secure the funds required to settle those bills. The problem is: Despite working diligently for days, we have no access to the money we’ve rightfully earned over our working period, making it challenging to meet these critical financial obligations.
What if there is a way you can access the money you’ve worked for without waiting until the end of the month?
As an employer in Nigeria, your employees have these numerous financial requests. How do you intend to keep up to ensure their productivity at work?
This is where on-demand pay comes in.
What Is On-Demand Pay?
On-demand pay in Nigeria, also known as earned wage access (EWA) or early salary access, is a flexible salary payment approach, where employees can request the money they have worked for over time in a company without waiting till the next payday.
Instead of receiving pay at fixed intervals – normally at the end of the month – employees can request wages they’ve already worked for as it accrues. It’s a valuable, low-cost employee benefit that gives employees flexibility and control to manage their personal cash flow.
For instance, an employee who earns ₦450,000 in a month, earns ₦15,000 daily in a 30-day pay cycle. With On-Demand Pay, the employee doesn’t have to wait till the end of the month before they can gain access to their money. They can request their earned salary on any day of the month.
With Earnipay’s On-Demand Pay feature, employees generally have access to 50% of their total accrued salaries to address urgent financial needs. It is free for employers to offer this benefit and employees will only be charged flat withdrawal fees, just like any other financial app.
Benefits Of On-Demand Pay For Employers
As an employer, ensuring that your employees are not burdened by financial stress is crucial because their ability to dedicate the required time and attention to their work directly impacts the success of your business. By demonstrating that you genuinely care about their financial well-being, you create a more productive workforce. Below are some of the benefits that come with providing an on-demand pay benefit to your employees.
- Improves employer/employee relationship and work culture in the company: The introduction of on-demand pay into your company signifies your commitment to your employees’ financial well-being. This not only strengthens your relationship with them but also fosters a positive work culture within the company.
- Serves as a competitive means to attract and retain talents: As word spreads that your company offers this employee benefit, it sends a clear message that your company prioritizes the well-being of its employees. This makes your company stand out in the competitive job market, making it more attractive to prospective talents seeking employers who genuinely care about them.
- Improves productivity in the company: When people have something on their minds, it can make them feel sad and less able to do their best at work. Imagine an employee who has a loved one that is sick and he can’t afford to pay the hospital bills. It would be really hard for such employee to focus on their job. This can be a problem for your company. But with On-demand pay, things can get better because such employee now has access to funds needed to help their loved one in the hospital. It’s a good thing for them and for your company.
- Free Employee Benefit: Providing On-Demand Pay to your employees with Earnipay comes at zero cost to your company.
Benefits of On-demand Pay For Employees
In Nigeria, On-demand pay has many benefits for employees, just as it benefits employers. An employee with the on-demand pay option will not have easy access to funds to sort out emergency needs quickly, but will also be able to save and make better financial decisions before the end of the month. Some benefits of on-demand pay for employees are below.
- Easy access to funds to tend to unexpected bills: With On-Demand Pay, Employees can easily access funds from their salary accrued over a work period. They do not have to wait till the next payday to pay their important bills.
- Helps to avoid high-interest loans: When faced with financial issues, people tend to turn to loan apps. These apps typically come with high-interest rates. However, employees provided with the option of on-demand pay do not have to seek loans to solve their financial issues. Instead, they can simply request a portion of the salary they’ve earned to address their financial obligations without incurring additional interest charges.
- Improves financial stability: On-demand pay helps employees in Nigeria handle their money better. They can create effective budgets, set aside money for saving, and plan for future expenses with more confidence. This smart way of managing money helps them reach their financial goals and be ready for the future.
- Access to other financial services: With Earnipay, employees not only have access to On-Demand Pay to sort out bills, they also get to save before the end of the month directly from their earned salaries and earn high returns.
Many employers are now embracing and implementing on-demand pay as an employee benefit option for their employees.
To enjoy the benefits of on-demand pay as an employer or employee in Nigeria, visit earnipay.com