As the job market gets increasingly more competitive, companies are getting more creative on ways to recruit top talent. From unlimited PTO, flex work schedules, to better health plans – companies are offering more to their employees than ever before. The newest benefit employers are adding to the list? On-demand pay. Read on for everything you need to know about this new benefit that’s on the rise, and what you should consider before implementing it.
On-demand pay is a form of instant gratification, giving employees access to money earned before their next pay period. This is a change-up from the typical pay schedules which operate on a weekly, bi-weekly, or monthly basis. At the end of a given workday, the employee would decide if they want to receive payment for that day or any hours they have not cashed out since their last paycheck. These services are provided through the employer’s payroll, and some charge an extra fee for this added benefit.
Many employees and employers have felt the ongoing effects of the global pandemic. From financial hits, job turnover at an all-time high, and an emphasis on employee wellness – the way we approach the workplace has completely changed. In response to this, companies have started offering additional benefits to recruit and retain employees, such as on-demand pay. For an employee that may be in a pinch to pay their bills or put food on the table for their family, this added benefit could be seen as crucial.
With a variety of benefit options available, is this something your company should consider offering your hourly employees? Here are a few things to consider before incorporating on-demand pay: