The key to employee retention is creating a thriving workplace culture that employees don’t want to leave. To achieve this, employers can leverage various types of tools to attract and retain high-caliber talent. The good news is most of these tools can produce great results for small and medium-sized businesses on a limited budget.
One of the best ways you can transform employee retention is with same-day pay. In this article, we look at how same-day pay works, how to implement it, and why it’s one of the best employee retention tools at your disposal.
What’s Same-Day Pay?
Same-day pay is a term that can mean one of two things. For starters, same-day pay is money you receive on the same day the transfer is made. This is opposed to waiting several business days after depositing the money into an account.
On the other hand, same-day pay is when employees get paid the money they would have worked for that day, instead of waiting for a scheduled payday. Whichever definition of same-day pay you consider, both involve giving employees their wages sooner rather than later.
This contrasts with old-school paychecks, where there may be delays in getting the money while an employee tries to cash the check or waits for the money to hit their account.
Why Same-Day Pay is Great for Employee Retention
Call it same-day pay, expedited pay, daily pay, flexible pay, on-demand pay, or fast pay – the one thing that these early payroll innovations have in common is they’re great for employee retention. On the whole, same-day pay is beneficial to employees (and you) in several ways.
Financial Wellness = Employees Get Money When Needed
Considering that many Americans live paycheck to paycheck and have little to no savings, there are many things wrong with the traditional payday.
The time between paychecks can be financially tough for employees, especially if unexpected expenses come up as they usually do.
Employees often borrow to manage expenses like car repairs, emergency trips to the doctor, and other money issues. However, borrowing options like payday loans and bank overdrafts come with expensive interest rates and fees, which perpetuate money troubles.
This doesn’t have to happen when employees can access their wages on demand. For instance, if they have car issues, they can still afford repairs and get to work with minimal stress. When employees have minimal financial stress, they enjoy working more and look forward to getting their wages frequently.
Convenient – Offers More Frequent Access to Pay
Today, the name of the game is convenience – all thanks to modern advances in technology. The younger generational workforce, in particular, demands convenience as part of job perks. Besides, there’s no reason for employers to stay behind the times and stick to fixed pay cycles.
Same-day pay is a concept that can easily be integrated into the existing payroll. For instance, employees can provide early access to earned wages using payout cards so that employees can get paid more frequently.
Employees without bank accounts can receive money instantly and skip the trip to the bank to cash their checks. This convenience is unmatched and creates a better employee experience that attracts better candidates that want to stay.
Flexibility – Employees Have Greater Freedom Over How They Want to Get Paid
Same day pay is an effective tool for employee retention because it’s a way of putting employees first. Many employees want payout cards because they provide faster access to wages. When management listens, employees will know they have a voice and can express their needs and preferences.
Flexible employees have great attributes that contribute to more positive work culture. For example, they are open-minded, forward-thinking, considerate, approachable, and these are all attributes that make a real difference to employees’ lives.
Even when employees don’t plan to tap into their earned wages every day, knowing the option is available is the cherry on top for them.
Make Same Day Pay a Breeze With Juice Banking
Same-day pay gives employees more freedom when it comes to accessing their pay. Fortunately, implementing same-day pay doesn’t have to be complicated with Juice payout cards. How does it work?
All you have to do is sign up for a free account to order custom Juice payout cards for your employees.
This means less financial stress and more convenience and flexibility for the people that work for your company. Since your employees are your biggest investment, giving them the payment benefits they want results in better employee retention.
It’s easier to retain employees that feel motivated and, in turn, the boost in productivity is one of the best things that can happen to your bottom line.