TECHNOLOGY
The rise of on-demand pay solutions: boosting employee financial wellness and engagement
Brian Sparling ChMCIPPdip, director of managed services (EMEA), Ceridian, explains how and why organisations should be looking for options to boost employee financial wellness
I n today's fast-changing world of work, coupled with rising inflation and an uncertain economy, organisations wanting to be seen as top employers need to prioritise employee financial wellness. This doesn’t mean simply paying higher salaries. A key innovation gaining traction in the payroll industry is the rise of on- demand pay programmes. These solutions promote employee financial wellness and engagement by giving workers access to their earned wages on demand, subsequently reducing financial stress and giving organisations a competitive advantage through a happy and engaged workforce. As we explore the implications of financial stress and its impact on employees and employers, it’s crucial to understand how on-demand pay solutions are addressing these concerns. Equally important is the role of payroll professionals in advocating these initiatives and highlighting the importance of financial wellness. Surging financial stress and the rise of on-demand pay Financial stress is no longer just an individual’s problem – it’s an organisational roadblock which has a significant impact on both employees and employers. A
recent Ceridian survey (http://ow.ly/ kFiY50OcQis) revealed that financial stress has reached its highest level since 2008, costing organisations billions in lost productivity each year. When faced with financial stress, employees find themselves caught in a downward spiral of low job satisfaction and declining mental and physical health, all while facing increased levels of burnout. Employers, on the other hand, must navigate the impact of reduced productivity, increased turnover and the associated costs of recruiting and training new personnel. To better meet the needs of today's workforce and address mounting financial stress, employers have turned their focus towards innovative solutions which prioritise employee health and wellness. One example is the adoption of modern benefits like on-demand pay solutions. The typical monthly or two-weekly pay cycle is a relic of the past and legacy technology that leaves employees vulnerable to unexpected expenses. By providing people access to their earned wages on-demand, it helps reduce dependence on high-interest loans or credit card debt to make it to pay day, and empowers employees to take control of their finances. As a result, on-demand pay
can contribute to heightened productivity within the workforce and serve as a competitive edge for the organisation. “Financial stress is no longer just an individual’s problem – it’s an organisational roadblock which has a significant impact on both employees and employers” By adopting financial wellness benefits and on-demand pay, organisations can effectively reduce employee financial stress, leading to increased job satisfaction and overall well-being. These solutions not only help promote financial wellness and contribute to a healthy, productive workforce, but also enable organisations to position themselves as employers of choice and better attract and retain top talent in a competitive job market. On-demand pay solutions are gaining momentum among workforces. The rising popularity of on-demand pay solutions and financial wellness programmes
| Professional in Payroll, Pensions and Reward | June 2023 | Issue 91 50
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