Payday is every employee's favorite day of the week, or month in some cases. Yet many employees, most even, feel they can't wait that long. In fact, it's been reported that 78% of employees live paycheck to paycheck, and 68% say that personal financial issues affect their health. That's why, in a post-COVID world, offering services such as wages on demand is more important than ever. Here are some of the benefits of offering wages on demand.
Benefits of Wages on Demand
With the financial hardships that many employees in the country face, there is no way to help your employees better manage their finances than with wages on demand, sometimes referred to as earned wage access.
Wages on Demand services provide early access to part of an employee's paycheck for a small, flat fee. This means employees no longer need to pursue options such as using high-interest loans or worrying about over-drafting bank accounts between paychecks.
While earned wage access options have a significant, positive impact on employees' lives, employers can also expect to reap some benefits. Here are three major benefits of implementing wages on demand.
Improved Employee Retention and Talent Attraction
It's no secret that the more benefits you can offer to employees, the happier they'll be. Greater employee benefits also mean a better offer for potential new hires. That's why the largest benefit of wages on demand is improved employee retention and improved talent attraction.
In fact, 89% of workers say they would be willing to stay at a company longer if the company offers earned wage access, while 79% of workers say they'd be willing to switch to an employer that offers earned wage access.
Suffice to say, employees are looking for earned-wage access options. Businesses not offering wages on demand are simply putting themselves at a disadvantage. Not to mention offering wages on demand comes at no added cost to the employer.
No More Advances on Pay
Through wages on-demand services, employees can address short-term cash crunches between paychecks, avoiding late bill payments, and can do so 24/7.
What does this mean for employers? By having the option for earned wage access, employees no longer need to come to employers looking for advances in pay. Advances in pay can be tough on the employer, with the risk and overhead making it difficult to say yes to these requests.
It's no secret that a stressed employee with a lot on his or her mind is not a productive employee. Very few stressors can be as tough on the mentality of an employee as financial issues. In fact, 38% of employees consider financial stress a distraction at work.
While wages on-demand services can help employees avoid stressing about their finances, the benefits don't end there. In addition to wages on-demand, some earned wage access services also offer financial wellness education programs.
That means that while employees have options to address financial challenges as they come up, they are also getting the help they need to avoid those situations in the first place.
Get Started with Wages On Demand
Employers looking to get started with earned wage access options can do so at no additional cost.
Contact Payday HCM today to see what kind of wages on-demand services are available to you.