Staying abreast of the amenities, perks, and general policies that attract jobseekers and boost employee retention should be among the top priorities of all employers. It’s also crucial for employers to remember that these attitudes among their workers and potential candidates can evolve as new technologies and solutions become more widely available.
For example, on-demand payment solutions now allow employers to pay employees their wages on the same day they were earned. Traditionally, if an employee worked a shift at the start of a new pay period, they might have to wait two weeks (give or take, depending on an employer’s pay schedule) to receive their wages for that shift.
That no longer needs to be the case. On-demand payment solutions now let an employee in this scenario request and receive wages for that shift on that very day.
Employers across virtually all industries should strongly consider adopting these solutions. Data indicates that doing so can significantly impact employee engagement and retention.
A recent survey indicates that employees want on-demand pay
A recent survey was conducted in which 1,000 workers throughout the United States were polled on their feelings regarding the impact on-demand payment solutions would have on their decision to accept a job with a particular company.
The results are very telling. The report indicates that approximately 79 percent of employed Americans (including both part-time and full-time workers) would likely apply for a job if one of the benefits offered were the option to receive same-day payment. In 2018, the rate of employees expressing this desire was 30 percent lower.
The report also provided valuable information about how this benefit would affect workers’ feelings regarding whether to stay with a company. It revealed that more than half of respondents would probably stay an extra month to a year at a job if same-day payment were one of the perks.
Why employers need to adopt on-demand payment solutions
It’s easy to understand why these findings should capture the attention of employers. Finding and retaining talent plays a critical role in the success of any organization. Even if a business owner has a strong plan and a drive to succeed, their company can’t thrive and grow in the long run without a reliable and engaged workforce.
Allowing employees to receive same-day payments (at no fee, of course) is one way to appeal to jobseekers. Here is a common scenario. If a talented candidate has two attractive offers, it could come down to the benefits. If one of the companies is offering them a position that had already adopted on-demand pay, this could give them an advantage. It could be the single factor that informs a job seeker’s eventual decision.
That’s a critical point to keep in mind. On-demand payment solutions are becoming increasingly available. Numerous employers are already adopting them. To remain competitive, an employer needs to keep up with this trend. Failing to do so will put them at a significant disadvantage.
On-demand pay also helps alleviate financial stress for employees. By adopting it, employers have a method to help employees reduce stress. For example, most Americans do not have $500 in savings. Employees may be stressed if they are worried that they will not be financially able to cover the cost of a sudden emergency. They may turn to payday loans, high-interest credit cards, or potentially bounce a check to pay off their emergency debt.
That may be less of a concern for them if they know they can request payment for their wages whenever they choose to. Even if an employee doesn’t always exercise this option, simply knowing that they can if doing so is ever necessary can give them substantial peace of mind. That will allow them to focus on their work in a more productive manner than they otherwise might.
On-demand pay is here to stay
Employers can’t assume the desire for same-day payment solutions is a passing trend. More likely, workers will prioritize this benefit in the coming years. Organizations can give themselves a competitive edge by offering it sooner rather than later.
Edenred’s AnytimePay is an on-demand payment program that businesses can add to their benefits list to attract and retain their best employees. AnytimePay allows employees to have money in between paydays for food. They can eat at restaurants, buy groceries, or order from delivery apps.
Employees can add money from their paychecks to a prepaid debit card. When the funds are requested, they are available in seconds. They then can purchase food with the money 24 hours a day, 7 days a week.
Payments are processed each pay cycle, and there is no debt collection. The business has complete control over the program, and Edenred helps maintain all compliance standards.
More and more employees are demanding on-demand pay. Schedule a meeting today, and we’ll be happy to get you started or provide you with more information.
