On demand pay is a type of payroll service that allows employees to access their earnings on a more frequent basis than traditional pay cycles. This can be particularly helpful for employees who may need access to their earnings sooner than their next regular payday. This article will explore everything you need to know about on demand pay and how it improves employee satisfaction- as well as your company’s bottom line.
What is On Demand Pay?
On demand pay is a type of payroll service that allows employees to access their earnings earlier and more frequently than traditional payroll – as often as the same day they complete their shift. This can be particularly helpful for employees who want flexibility or may need access to their earnings sooner than their next regular payday.
On demand pay is typically accessed through a reloadable pay card. Once an employee’s on demand pay is deposited onto their card, they can use it like a debit card to make purchases, withdraw cash, or transfer funds to their personal bank account.
Benefits of Offering On Demand Pay
On demand pay can help improve employee satisfaction in a number of ways. Offering early payouts can help improve employee satisfaction, improve recruitment and retention of employees, and even improve your company’s bottom line!
Increased Employee Satisfaction
- On demand pay provides employees with greater control over when they receive their earnings. This can be helpful for employees who may need to cover unexpected expenses or who simply prefer more flexibility when it comes to managing their finances.
- On demand pay can help reduce financial stress by providing employees with more timely access to their earnings. This can lead to improved focus and productivity at work, as well as greater peace of mind overall.
- On demand pay can help build trust and strengthen the employer-employee relationship. By offering this benefit, employers are sending a message that they value their employees’ time and well-being.
Recruit and Retain the Best Employees
Offering on demand pay can also help you attract and retain top talent. In today’s competitive job market, offering on demand pay can help give your company a leg up on the competition.
On demand payout cards allow you to reward your employees for their hard work and commitment to your organization. This can increase workplace satisfaction, resulting in higher productivity, increased loyalty, and lower turnover.
A Gallup study found that lack of rewards and recognition are one of the most common reasons why employees leave an organization. Offering proactive solutions like on demand pay can show employees you care about their financial wellbeing and hard work.
Improved Bottom Line
Offering on demand pay can also have a positive impact on your company’s bottom line.
Reduced Payroll Costs
On demand payment processors like Juice can actually save you on payroll costs. Getting started is incredibly easy, and can be less costly than traditional payroll cycles.
On demand pay can also help improve employee retention and engagement by reducing financial stress. When employees are not worried about making ends meet, they are able to focus on their work and be more productive.
In today’s environment, it’s not unheard of for an employee to call off a shift to go drive for a ridesharing app, because they need access to cash immediately and the app offers on demand pay. Offering on demand pay removes the incentive for employees to do this.
Decreased Fraud Risk
Payroll fraud can cost businesses a great deal of money. According to the Association of Certified Fraud Examiners, the cost of payroll fraud accounts for 8.5% of occupational fraud. The average case can cost a company over $70,000. You can easily monitor payments and payroll by using a reloadable payout card. Automating payroll management can help reduce these fraud cases, as well as maximize productivity.
Expense reimbursements are also a high fraud risk. Expense report fraud can cost employers more than $30,000 a year. This can really add up and impact a company’s bottom line. Using a reloadable payment card like Juice can help reduce the risk of fraud with reloadable payment cards that have dynamic spending controls.
Offering on demand pay is a great way to improve employee satisfaction, retain employees, and improve your business’ bottom line. If you’re interested in offering on demand pay to your employees, there are a few things to keep in mind.
Things to Keep In Mind When Offering On Demand Pay
- Be sure to clearly communicate the terms of on demand pay to your employees. This includes explaining how often they can access their earnings and what, if any, fees may be associated with the service.
- Consider offering on demand pay as an optional benefit, rather than making it mandatory for all employees. This will allow those who are interested in the service to take advantage of it, while still giving others the option to receive their earnings on a traditional pay schedule.
- Make sure you have the necessary infrastructure in place to support on demand pay. This includes having a robust payroll system that can handle more frequent payments and ensuring that your accounting team is prepared to process these payments in a timely manner.
If you’re looking for a way to improve satisfaction and attract top talent, on demand pay may be the answer.
First, you’ll need to partner with a payroll provider that offers on demand pay services. Not all providers offer this service, so be sure to ask before signing up for payroll services. Juice Financial specializes in on demand pay and can help you get set up quickly and easily.
Sign up for Juice now to start offering your employees early access to wages!
If you’re interested in offering on demand pay to your employees, we’d be happy to chat with you about your options. Contact us today to learn more.