Helping improve employee financial wellness and relieving stress is a great way to improve productivity, loyalty, and your business’ employer branding. Learn why an increasing number of corporations are adopting On Demand Pay.
Why is On Demand Pay Important for Employees?
Salary cuts, layoffs, and zero bonuses caused by the pandemic has impacted employees’ ability to keep their finances under control. The financial impact has severely affected individuals struggling to make ends meet and cause an increasing number of people to fall victim to predatory lenders.
According to a study by Visa, 84% of employees spend time at work thinking about their finances each week, while 68% of employees felt that personal financial issues are impacting their health.
On Demand Pay changes the landscape for employees as ODP provides them with greater control over their finances, greatly improving their financial wellness. The ability to access wages anytime gives employees the flexibility to deal with unexpected costs, offset the costs of essentials, improve mental wellbeing, and better face economic downturns. This prevents the need for employees to take out high-interest loans and end up in further financial trouble.
Research from The Josh Bersin Company sees On Demand Pay as the future for pay access and the idea of a “pay day” now being antiqued
How Does On Demand Pay Benefit Employers?
At face value, On Demand Pay seems like a feature that is only beneficial for employees’ financial wellness and adds no significance to an employer. However, there is an increasing number of corporations choosing to implement On Demand Pay, which has business leaders asking why?
The fact is that On Demand Pay actually brings multiple indirect benefits for an employer. Here are the main benefits employers can expect after offering ODP:
Attracting & Retaining Talent
Introducing On Demand Pay increases your organisation’s ability to attract and retain talent according to Visa. When the idea of On Demand Pay was pitched to employees an overwhelming 95% said they would be interested in working for an employer that provides ODP.
Worryingly for employers that don’t provide ODP is that 79% of respondents would be willing to switch to an employer that does. With employee turnover potentially causing impacts like lower workplace morale and disruptions to productivity, employers would be smart to introduce employee benefits that create an environment that retains talent.
With 89% of employees saying they would be willing to work longer for organisations that offered On Demand Pay, it would seem like a no-brainer for businesses to implement it.
Increased Productivity
As previously mentioned, the majority of employees think about their finances during work. For individuals struggling to make ends meet, their financial problems will have a direct impact on their performances at work.
Feeling financially stressed lowers engagement at work performances to suffer. According to Hong Kong’s Investor and Financial Education Council (IFEC), a survey they conducted found that one in every four employees reported that financial stresses affected their work, reducing their concentration, lowering productivity, and increasing absenteeism.
In more serious cases, financial stress can indirectly lead to bribery, injury, and theft. By allowing employees early access to their earned wages, employees can handle financial issues enabling them to reengage at work, improving morale, commitment, and productivity.
Build and Preserve Your Employer Brand
On Demand Pay is also the perfect way to create a strong employer brand. Reputation is everything and with the speed of news spreads nowadays any PR disaster can severely damage your company’s name in the long term. If any of the serious situations mentioned above occur, the negative impact on your company could be irreversible.
According to TalentNow, 84% of job seekers say company reputation is important and plays a crucial role in their decision to apply for the position or not.
Not only does implementing ODP prevent potential bad situations from occurring, but it also helps you build a good company reputation that prioritises employee wellness. By rethinking your payroll with this simple but effective employee benefit, you will build trust between the organisation and workers.
Looking to build a company brand that attracts the best talent? Contact us now to learn about our tailored Asia-Centric Employer Branding service!
Asia’s First Native On Demand Pay
Links International is the first in Asia to offer native On Demand Pay. Employees can request and access their earned wages within 2 hours of applying through Links One regardless of the pay day, greatly improving their financial wellness. If you operate in Asia and want to provide your employees with the number one benefit they desire, contact us now to learn more!
Related Articles:
- How to Find the Best Payroll Service Provider for You
- Should Finance or HR Be Responsible for Payroll?
- How to Write an Effective Payroll RFP + Template
- Onboard- APAC 2021 Q4 Legislation Update
Links International is an industry leader in innovative HR outsourcing with services such as payroll outsourcing, visa application, PEO/EOR Secondment, outplacement, recruitment and more! Contact us for more information on how we can help leverage your HR function.
