Chronically absent and tardy employees can be the ruin of small businesses. When workers are regularly late to the job, this has a major impact on a company’s bottom line, morale, and productivity.
If you’re dealing with a persistently late employee, speaking with the individual and warning them can help. However, if you have recently noticed a company-wide trend of unpunctual employees, the root problem could be on your end.
So, before you think of escalating matters to the termination stage, consider how you can influence workplace behavior to reduce employee lateness. Could early payroll be the solution you need?
Financial reasons why employees are late
What do your employees say when giving a reason for their lateness? If you notice any of these reasons, the culprit could be a lack of financial wellness resulting from inflexible payment solutions.
- The babysitter was a no-show – If your employees live paycheck to paycheck, they may run out of money to pay the babysitter or cover elderly care. This forces them to stay at home while waiting for the next cash influx.
- Their car broke down – Unexpected expenses and financial emergencies can throw a wrench into an employee’s schedule. They have to spend company time figuring out how to get to work and finding the money for car repairs.
- They didn’t have transport money – Similarly, when workers run out of transport fare, they may be late if they’re using unfamiliar methods to get to work, like waiting for a ride from a friend.
- They were stressed – It’s not unusual for workers to get sloppy when they are stressed. The last thing on their minds is keeping an eye on the clock.
- They were sleep-deprived – Employees may take on side gigs or spend sleepless nights figuring out how to get through the month. They may struggle to get up in the morning and make it to work on time due to fatigue.
Besides that, employees can also be late if they have been out job hunting. Obviously, they won’t tell you this. But, to them, it’s a valid reason because they’re looking for another employee that can help ease financial pressures.
Employee tardiness costs US businesses billions of dollars each year, which goes to show that employees’ financial problems translate to financial problems for your business. Fortunately, it’s easy to turn this situation around through improved offers, such as early payroll.
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How early payroll boosts overall employee satisfaction
With digital transformation, there’s no reason why employees shouldn’t get paid early. For instance, with direct deposit, employees can receive money in their accounts faster than paper checks. Since direct deposit isn’t always immediate, you can take things up a notch with payout cards that can be loaded with wages, allowing workers access to their money with immediate effect. Payout cards don’t involve bank accounts, so they are also suitable for unbanked employees.
Generally, early pay can transform employee lateness by reducing financial stress. During a typical pay cycle, workers have to deal with late fees, overdraft fees, and borrowing fees to make ends meet. This vicious cycle contributes to employees developing a habit of being late. One way to get your employees out of this cycle is through early payroll and instant access to wages.
When you take care of this aspect, employees are more financially stable and have fewer to no financial reasons for dragging their feet to work. On the contrary, an employee who receives an early paycheck will have a better work experience and feel more satisfied with their job.
Therefore, digital payment solutions should be part of the equation for solving employee lateness. They can even be used to establish a system of punctuality incentives that discourage tardiness and encourage on-timeliness. Overall, real-time solutions like payout cards are the perfect tool for building a corporate culture that promotes punctuality.
Juice Banking can help with your early payroll needs
Time is money, so every minute that’s lost to employee lateness is just another bite from your company’s profits. The solution is a combination of benefits and penalties, and part of that is offering early pay. Ideally, this should be implemented via seamless digital payment solutions that save time and expedite payroll.
Juice Banking payout cards are designed to fully meet early payroll needs for small and mid-sized businesses. We are here to help you improve the quality of life for employees by eliminating financial stressors that spill over into company time.
Sign up for Juice custom cards for your employees and embark on the road to better financial wellness – for both your employees and your business.