It’s no secret some businesses and industries are having a hard time filling jobs and retaining employees this year. Innovative companies are thinking harder about what they can do to keep their employees, including offering more meaningful benefits.
A benefit that is trending upward is on-demand pay. With on-demand pay, employees can get access to their paychecks as the money is earned rather than waiting during the traditional two-week pay period.
Here are three reasons why this type of employee pay produces happy and productive employees.
1 – Employees want on-demand pay
In recent employee surveys, on-demand pay was scored very high. Eight of 10 employees said they wanted on-demand pay, yet only two of 10 have access to it at this time. Employees are expected to see it from more employers in the future.
A Gartner report says less than 5 percent of large companies offer it now, but 23 percent will by 2023. Visa says 79 percent of employees would switch employers so they can get on-demand pay.
2 – On-demand pay provides a safety net
Can you cover a $400 emergency expense with cash? About 37 percent of American workers cannot, according to the Federal Reserve.
On-demand pay allows employees to get access to their paychecks quickly, to be used for emergency expenses like car troubles or a health issue. Seventy-eight percent of employees pay bills on time. With the reduction in stress caused by finances, employees can focus on their jobs.
3 – A safer way to access money
If employees need to access money quickly, they have few options. Often, they have to risk using services with high interest fees, including credit cards, payday loans, or bouncing a check.
On-demand pay offers better options. Employees can access the income they’ve already earned for a small fee without having to wait for a two-week pay period.
Get on-demand pay for your business
Edenred’s AnytimePay is now available for employees who want to request their paycheck early. Payments are processed each pay cycle and you don’t have to worry about debt collection. Your business maintains complete control over the program while we ensure everything remains compliant.
Your employees can request funds through our app and use it towards whatever they need. Once requested, the funds become available within seconds. Their money will be deducted from their paychecks within the same pay cycle.
Would your employees benefit from on-demand pay? If so, we’d like to meet with you. Schedule a meeting today and we’ll be happy to review all your options with you.