3 big benefits for employees with on-demand pay
We live in a world of seconds now. You can select from thousands of movies, get updates on social media, and even order food from a grocery store or restaurant, all with a few clicks from your phone. In that case, it makes sense to pay employees what they’ve earned should also be a few clicks away, rather than having to wait for the traditional two-week pay period.
On-demand pay is something that employees want, and it continues to grow every year. There are several reasons as to why on-demand pay, like Edenred’s AnytimePay, can greatly benefit employees.
Here are a few reasons why:
1 – Reducing stress
The most significant stress we have at our jobs has nothing to do with our work. Studies have shown that financial stress is the biggest burden for employees. A PwC study showed that 63 percent of workers say their financial stress has increased since the pandemic.
On-demand pay helps to alleviate the stress. Instead of forcing workers, particularly low-wage workers, into challenging situations like using high interest credit cards, taking out a payday loan, or risking an overdraft fee on a checking account when emergency bills are due, on-demand pay gives people access to their paycheck early so they can take care of the bill immediately. In fact, nearly 80 percent of workers are using on-demand pay to pay their bills on time.
2 – Providing flexibility to employees
Accounting firm EY says that about 70 percent of workers are now paid every two weeks or monthly. However, the rate of pay runs counter to what employees want. Eighty percent of workers interviewed said they would be interested in having access to money they’ve already earned instead of waiting for their paychecks.
On-demand pay can deliver a better experience for employees. With about 42 percent of people having difficulties to meet their expenses every month, on-demand pay can deliver the flexibility to help them out.
3 – Creating a positive work environment
Wise employers are always concerned about employee engagement. Engaged employees are more productive and have a higher retention rate. About 75 percent of workers who took the PwC survey with increased financial stress in their lives said that they’d work for employers who emphasize financial well-being. It would be an attractive benefit.
Along with other team-building activities, offering on-demand pay is an excellent way to create a positive work environment. Employees will enjoy having access to their earnings because they’ll deal with less financial stress and have access to pay earlier than they would at most other businesses. A positive culture can help employees reach their full potential.
On-demand pay is a great benefit to add to a company. Edenred makes it easy with AnytimePay. We make it easy to use by giving employees access to an app to request money they’ve earned but haven’t been paid yet. Your employees can choose an amount up to their limit, and their funds are available in seconds.
Would AnytimePay be a good fit for you and your employees? If you’d like more information, book a meeting with us so we can help you find the best option for you.