5 Ways On-demand pay benefits employers
On-demand pay has become a popular payment option for employees. Employees like how they can immediately access their wages rather than wait for a two-week payroll period. But there are significant benefits for employers too.
Here are five ways employers benefit from offering their employees on-demand pay options.
1 – Increased retention rates
Many businesses, particularly those that pay lower wages, can have significantly high turnover rates. Implementing an on-demand payroll system has helped some of them boost their retention rates. Checkers & Rally’s in Tampa, Fla. saw a 20 percent decrease in its turnover numbers.
2 – Increased Productivity
According to the Federal Reserve, 37% of American workers would have trouble paying $400 in unexpected expenses. It’s well-known that employee financial stress is one of the biggest problems companies face. On-demand pay is helping some of them take the stress off employees, which allows them to be more productive at work. In fact, 78 percent of employees report they can pay their bills on time with on-demand pay since they don’t have to wait to receive their earnings.
3 – Recruit the best employees
Since not every employer offers on-demand pay, it can be a game changer for those who do. Prospective employees are attracted to getting paid fast, plus they appreciate the fact that on-demand pay can take away at least some of their financial stress. According to one survey, 79% of employees would change employers if they could go to one that offers on-demand pay.
4 – Raise engagement
While there are many ways to raise engagement, there are a few ways companies can do it financially. By instituting on-demand pay, companies demonstrate that they have their employees’ best interests at heart and listen to their concerns. Not all companies can raise wages but helping employees access what they’ve already earned can help create an engaged workforce.
Get on-demand pay
In a tight labor market, it pays to have the best benefits for prospective employees. Edenred can help you provide on-demand pay through its AnytimePay solution. AnytimePay allows employees to request their wages in seconds through our mobile app.
Improve your employees’ financial well-being by offering AnytimePay. If you’d like more information, book a meeting with us so we can help you find the best option for you.