The need to offer your employees access to on-demand wage is just something that can’t be overemphasized.
There’s a lot to gain for businesses that do this and here are five more reasons you should start this at yours:
It Attracts New Employees
The job market is getting more buoyant so apart from negotiating better pay, candidates are also asking for better payment structures. A business offering on-demand pay positions itself as one that keeps up with key business trends and that’s something talented professionals look at when they’re evaluating offers. Employee advances provide them with more flexibility and that’s something most workers value. It offers them control over their own schedules.
You need employees that will motivate you and bring added value to your team and the only way to do that is by attracting fresh talent. There are millions of fresh college graduates getting into the job market every year, most of them will propose a lot less in wages than more experienced candidates and a smarter payment solution is something most won’t refuse. Employee benefits are a major talking point before every hire, and implementing a system that provides the benefit of flexibility is one you shouldn’t ignore.
It Improves Morale
Employee satisfaction has great links with productivity and financial stress is a huge issue in the workplace, on-demand pay is one way to help your employees with that. A 2015 report by the American Psychological Association quoted 72% of respondents reporting they felt stressed about money and 22% reporting extreme financial stress. Employees with high morale project positivity to your customers, this boosts the company’s image and attracts even more customers but it all starts with boosting the morale of your employees. Happy employees are productive employees, they use their skills to make decisions that work in everyone’s favor and there’s no downside to that.
It Empowers Employees
Offering on-demand pay gives your employees more freedom with their finances and that’s a way to create a flexible work environment. Part-time working, job sharing, working from home and on-demand pay, more employees are asking for flexible workplaces and more businesses are empowering their workers with these options, so you don’t want to get left out. If you empower your staff, you’re investing in your organization and giving them the autonomy to make decisions, especially financial ones, that’ll help them do their jobs. This helps staff retention because employees that would have changed jobs because circumstances in their life can only permit a flexible working environment will stay with you. Many businesses fail because only one or two people are putting in the work but empowered employees are committed to career growth and this creates growth in your business too.
It Reduces Stress and Financial Anxieties
Financial problems create stress, anxiety and even depression. Many people live from paycheck to paycheck so it can be stressful for employees not having access to money they’ve already earned because it’s not payday. Many of them compensate for this by taking out loans or working overtime and this leads to even more stress.
Medical expenses, career development costs, and lifestyle expenses are some problems that can require urgent financial aid. The IFEBP report for 2016 shows that more and more employees are dealing with high levels of stress. On-demand wage can help offset these costs. It’s hard for employees to keep their personal lives out of the workplace when money problems at home are stressing them. A stress-free employee is one that’s motivated, proactive, and responsible and also comes with the associated effect of reduced workplace conflict.
It Still Helps Maintain Financial Wellness
Financial wellness refers to the financial well-being of your employee, so an employee who’s financially well can absorb financial shock and is able to make choices that improve their life. Many businesses are searching for ways to develop financially healthy employees, and financial wellness programs are becoming incorporated in the payroll structure. On-demand pay is a key part of any financial wellness plan; it helps your employees deal with pressing financial emergencies and gives them the freedom to make choices that allow them to enjoy life. Financial stress leads to health problems like high blood pressure and loss of memory and these are problems that can affect performance at work. Working knowing that you’re prepared for any emergency is something every employee looks out for. If your employees are always on the lookout for the next shiny high-interest payday loan or worried about how they’ll pay their overdraft fees, it’s a sign that they’re not financially stable and that should get you worried. Offering financial advances is a great way to tell your employees that they’re covered if they ever need immediate cash, and there are FinTech companies that can help you with this.