For far too long, employees have been financially strapped and have had to make difficult choices to meet monetary obligations if they ran out of money before their payday. In 2023 and beyond, employees will start to look for financial control over financial distress and Payment On-Demand gives them just that, with early access to their earned wages before their actual payday.
Enhance the focus on financial wellness
Organisations’ underestimation on financial wellness has resulted in employee turnover,, and economically stressed employees are twice as likely to quit their job. Ever since the pandemic hit, and with the increasingly difficult talent market, employers have heightened their focus on the financial well-being of their workers along with more attention towards overall employee benefits.
Here’s a rundown of four major reasons why an organisation needs to incorporate Early Wage Access into their payroll structure.
4 reasons why you should be offering early wage access to your employees
1. No additional cost in attracting talent
It comes as no surprise that money is one of the main motives for most employees to choose a job. With a tight labour market, organisations need to find every last straw of benefits they can provide to attract talent. When you offer Pay On-Demand as part of your payroll system, it is part of telling potential employees that you take interest in their financial well-being.
In a survey conducted by YouGov, 70% of workers are more likely to go with employers who offer Pay On-Demand vs the ones that did not. Offering early access to wages that your employees have earned creates an attractive benefit. You will also be able to easily entice qualified workers, especially within the gig workforce, into your company with no additional cost to your bottom line.
2. Retention & reduced turnover
An increase in financial burden and no flexibility for employees in accessing their earned wages could yield in a higher staff turnover rate This may impact workplace morale and productivity disruptions, and financially stressed workers are smart enough to shift to companies offering better financial and compensation benefits. This means companies need to bear additional hiring costs for good prospects and productivity takes a huge dip.
Hence, it’s high time employers create an environment that benefits their workers so they may feel less compelled to leave their job. Pay On-Demand has proven to be a hit among the workforce that boosts morale and is an important way to secure and retain the staff.
3. Early Wages Access creates happier employees
The “waiting for payday” phenomenon may contribute to living close to the line, workers have to deal with late payments and added fees for bills that are overdue. Over three-quarters of Brits feel financial worries may be a distraction at work as they handle predatory payday loans or credit card debt to cover their needs.
When organisations offer Payment On-Demand as an option, employees have control over their money before payday. This inevitably reduces financial burden and emergency situations are less stressful because they have the ability to access what they have already earned, whenever they want. Workers will be appreciative to their employers for adding Pay On-Demand to their payroll which encourages loyalty and engagement.
4. Pay On-Demand is a hassle-free process
Organisations with a large workforce consider payroll processing to be cumbersome and a major cost to the business. It’s but natural to lean towards assuming that adding Earned Wage Access will only complicate this further, however, a lot of HR tech giants today offer Pay On-Demand as an add-on to existing payroll infrastructure, with no major alternations to existing technology.
Zalaris’ PeopleHub, a cloud-based HR & payroll software integrated with Pay On-Demand feature ensures all workers get paid on time and accurately. With access to consolidated analytics, you can yield useful insights enabling your HR & payroll teams to understand and meet employee needs.
Pay On-Demand: The right choice for your business
The Resolution Foundation published a report recently outlining that “when workers get paid do matters” and “workers should have the right to access their wages, choose the regularity of their pay”.
Businesses that offer Payment On-Demand tend to stand out in the labour-fluctuating market by attracting and retaining great talents. Candidates consider early wage access to be a meaningful differentiator in their benefits package and are more inclined to take a job that offers the same.
To get started with Pay On-Demand or to just learn more on how we can help, get in touch and offer your employees the financial freedom they deserve!