It’s no secret that the U.S. economy is facing some of its most turbulent times in recent history, and the people suffering most from its effects are frontline workers.
With basic needs hanging in the balance for a potentially large majority of your workers, getting paid before payday is indispensable. That’s why having access to early pay isn’t just a desire of the workforce. For millions of American workers, getting early access to pay has become a necessity for survival.
We’ve highlighted the key reasons why your employees want early access to pay below, most of which coincide with employer benefits. For starters, having more control over their wages affects how employees come into work every day and your company’s bottom line.
When someone isn’t getting enough to eat or falling deeper into payday loan debt, it’s hard to leave the burden of that knowledge behind. One recent study showed that 78% of people who are stressed about finances have difficulty staying focused at work, and distracted employees cost employers 10x more than absenteeism.
In short, what’s beneficial for your employees is also valuable for your business.
Financial instability leads your employees to make financial decisions that will hurt them more than help them, like taking out payday loans. Because they can’t get their earned wages before their next paycheck, they might not have the cash on hand to pay the loans (with high interest) back.
This results in fees and other late charges that only perpetuate the stress surrounding money. However, if employers offer employees a cost-effective employee incentive, like the ability to get pay before payday, then workers will have:
- Less financial stress
- Increased ability to focus at work
- Improved satisfaction, which leads to better employee retention
Lower wage earners are twice as likely to leave a position within the first year of employment. To improve overall retention, employers have a key responsibility to decrease their workforce’s financial burdens.
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There are other advantages to offering wages before payday for both you and your workforce, such as:
- Reduced Cost: Printing, signing, and mailing paper checks costs your company, and employees often have to spend money on check-cashing fees. Using a reloadable card specifically for wage access negates the need for checks.
- Mutual Satisfaction: Offering pay before payday helps underbanked employees save more of their pay, which lowers financial stress and increases productivity.
- Effective Incentive: Businesses who offer modern financial benefits find an increase in employee loyalty and motivation to stay.
- Greater Efficiency: For both the employee and employer, utilizing reloadable cards to disburse early wages eliminates administrative and financial headaches.
Getting Pay Before Payday is an Attractive Benefit
It’s difficult to imagine, but there are 44 million people in the United States who are underbanked or unbanked altogether. Common financial issues are magnified for such employees. People who utilize check cashing services or pay bills with cash face significant struggles when they can only receive their wages every two weeks or more.
That’s why offering more flexibility around when your workforce can access their pay is a powerful tool for attracting new employees. A study concluded that 72% of employees who are facing financial hardships noted that they are seeking employers who proactively show concern for employee financial well-being.
With the shift in the workforce after the Great Resignation, your company can grant your workers that which they desperately need:
- Financial Control: Early wage access offers an effective alternative for unbanked and underbanked employees. Employees can pay loans or bills early, transfer funds, and store unused earnings.
- Crisis Avoidance: When emergency situations arise, most Americans would need additional financial resources. Access to early wages can increase employee peace of mind and help them through crisis situations.
- Payroll Flexibility: Employees need access to funds before they’re behind on bills. Give your workers the flexibility to get paid when they need it.
- A Caring Environment: When employees are looking for companies that care about their well-being, offering innovative ways to receive payment captures the tone necessary to convey this crucial message.
Your employees need their pay before they’re behind on rent or struggling to put food on the table. One easy way to offer this financial benefit is reloadable pay cards. They give employers a powerful advantage by improving workplace satisfaction by offering on demand pay.
When financial issues matter to your employees, employers need an accessible solution that solves the problem.
You’re not just aiding your employees when your business easily transitions to reloadable pay cards. The comprehensive solutions offered by Juice Banking serve your workers, but also increase productivity, improve employee loyalty, and serve as a key part of your employee retention strategy.
Get started for free with Juice’s Quick Start for Employers today!*
*Fees may apply to cardholders