Stuff happens. Your car breaks down, a pipe bursts, the fridge calls it quits, your kid breaks their arm and has to be rushed to the emergency room.
Any number of things can happen during the week that throw off a carefully crafted budget and leave your employees stressed and wondering, “How can I pay for this? My next check isn’t until next week!”
If your employee is lucky enough to be part of 19% of people who have 3 months of expenses saved, they’ll probably be okay.
But with inflation allowing Americans to save less and less, it may be that many of your employees fall into the two following statistics:
- 25% of Americans have exactly $0 in their savings account
- 56% of Americans can’t cover a $1,000 emergency
Knowing that these types of emergencies put not only a financial, but a mental strain on your employees, you may be wondering…
As an employer – Is there anything I can do?
The answer is 100% yes. It’s a benefit called On-demand Payand we’ll tell you what it is, how it works, and how you can start doing it as early as the next pay period.
Firstly, what is it and how does it work?
Traditionally, your employee gets paid every two weeks. And if something unexpected comes up it gets slapped onto a credit card. Or worse, if your employee has bad credit, the emergency funds could come from a predatory “payday loan” company.
But On-demand Pay is a fair and smart way to make money available to your employees now when they need it.
For example, let’s say your employee, Jenny earns $6,000 a month. That means every day your employee works they are earning $300.
Five days into the new pay period, Jenny finds out her husband lost his job. They now only have one salary coming in and need help buying groceries so they can feed their 3 young children.
Her problem? She already spent her last paycheck on life necessities, and her next direct deposit isn’t scheduled for another 9 days. Since your company offers On-demand Pay as an employee benefit, Jenny can breathe easy. She can withdraw what she’s earned this week – thus allowing her to pay for food.
It’s important to point out that you’re not giving Jenny a raise. Her actual pay doesn’t change. She’s just able to access what she needs when she needs it.
As an employer, what you’re providing to Jenny and all your employees is simply the system to make this withdrawal possible.
An amazing benefit for mental health and productivity
You and I both know that it’s tough to concentrate on work when we are worried or stressed. But let’s put some numbers behind this sentiment,
- 68% of financially insecure Americans say that they experience anxiety.
- Anxiety/stress is one of the leading causes for the loss of employee productivity in the U.S.
- 550 million working days are lost to stress-related absenteeism every year.
Offering this amazing benefit could not only help you retain a productive, and satisfied, workforce, and cut down on absenteeism, but it could also help you expand your company. And that’s because 79% of job-hunters say On-demand Pay would make it more likely they’d apply at your place of business.
Simply put, this benefit makes you more attractive than your competitors.
How can I Start offering On-Demand Pay ASAP?
Edenred’s AnytimePay makes it easy to offer your employees a same day pay service. When you sign up with us, not only will we make sure your program is compliant, but we’ll supply each of your employees with a prepaid card so they can meet life’s emergencies head-on and with ease.
Schedule a meeting with us today and become a company people are scrambling to work at.