Pay On-Demand, as a concept is quite novel to a lot of industries and markets, it is said to foster employee financial wellness, empowering organisations to help their employees avoid debts and late payments by offering a portion of their earned wages upfront. Also, it is a great way to improve allegiance, employer branding, and overall business productivity.
The increasing need for Pay On-Demand
If your employees’ livelihoods depend on payroll to payroll, it often becomes difficult for them to make ends meet. When your staff are overwhelmed with their financial burdens and consume unsatisfactory payroll experiences, a huge number of people tend to leave their jobs for a better compensated and beneficial job role, especially now, during the phase of the great resignation.
A survey conducted by  financial well-being provider Neyber across 11,000 employees and 720 employers, found that money problems have been a significant stressor for employees.
The report showed monetary worries cost employers,
- £14bn in staff turnover – around 3.6 million employees are in search of new jobs
- £516m in lost productivity
Employees constantly struggle with the increasing costs of late fees, interest and in addition, the rise of payday loans. This seems to be an endless cycle of stress that is hard to break and pushes job applicants to prioritise pay and compensation-related financial benefits when applying for a job. With the raise of employees’ financial hardships, as employers, it’s important you pay attention to this.
Need drives innovation
Organisations of today are aware of how unhappy employees are with no financial aid from their employers and how it directly affects the company’s overall growth.
Having Pay On-Demand as a feature in your payroll system, employees can access some of their wages as they are earned. Instead of waiting to receive a bi-weekly or monthly payroll with wages earned from the previous pay period, payment on demand gives them more control over their funds.
When it comes to benefiting a business, earned wage access can be the crucial in attracting and retaining employees, without additional costs. You draw in more skilled and potential hires, not to forget the gig workforce, by offering well-managed pay and financial stability. You can also showcase that you understand the hardships and value your current employees by supporting them with financial benefits.
How does Pay On-Demand work?
An organisation’s contribution towards their employees’ financial security doesn’t stop with just providing routine and consistent paychecks. The Payment On-Demand feature was introduced so that employees can have access to the funds they’ve already earned during that pay cycle. This step was taken to benefit the business expansion and inculcate financial confidence in employees, making them feel safer.
By tradition, payroll is not calculated over a cumulative pay period, rather it is presented in real-time. This might make the idea of early wage access seem like a massive change in the HR and payroll process. However, employers can bring forth earned wage access without needing to make any vast changes in their current payroll administration or undergo daily payroll calculations.
Easy & smooth transition
Pay On-Demand offered by Zalaris is an integrated solution that sits on top of our cloud-based HR & payroll portal, Zalaris PeopleHub. The solution is intuitive allowing easy and understandable navigation throughout all steps, and can access their earned wages at any point and anywhere, through the mobile application, during the pay period.
In Pay On-Demand, earned wage payment is well managed through our payroll system, so taxes and any legal compliances are handled without additional effort from the organisation or the HR department. With our payroll service, you don’t need to strain cash flow issues, manage deductions or payroll errors, and you wouldn’t hamper your ability to operate on a daily basis as this is fully automated.
Why is Earned Wage Access the right fit for your business?
Pay On-Demand generates goodwill among the workforce, while it may seem counterintuitive to pay your workers before the set payday, earned wage payment can save money in the long run for the employer, creating it a smart business decision.
Here are some perks employers have experienced by offering on-demand payroll as a solution:
- Increase in applicants to a job that provides Pay On-Demand
- Reduction in turnover
- Improves employee satisfaction and productivity
- Brand positivity
- Reduction absenteeism
- Higher engagement and increased productivity
Businesses that offer employees benefits to tackle their financial complications not only improve the health of their workforce but also foster the company’s reputation and lowers employee turnover and maximises engagement
Pay On-Demand is the future and Zalaris can help
In a post-pandemic world, monetary wellness and flexibility has a bright future. Pay On-Demand is a beneficial for businesses; starting with increased retention, recruitment, and engagement, to making a financial safety net for the employees.
At Zalaris, our goal is to create the process of payroll fast, efficient, and customisable for your business needs. The Pay On-demand feature in Zalaris PeopleHub offers the workforce flexibility in getting paid when they want, how they want, and employers can set the guardrails in the portal.
We strongly believe our payroll software is convenient for both sides of the equation and we have created an innovative, easy-to-use platform to prove it.
Get in touch for more information, and make a smooth transition to Pay On-Demand.