Implementing On-Demand Pay, also referred to as Earned Wage Access, can be a game-changer for your organisation and employees alike. It provides employees with immediate access to earned wages, which can improve financial wellbeing and alleviate stress. However, before adopting such a system, it's essential to evaluate several key considerations to ensure it aligns with your operational requirements and workforce needs.

1. Assess Your Current Payroll Systems

Pay Cycle Length

Many organisations in the UK stick with monthly pay schedules. Consider how introducing Earned Wage Access will help close the gap between work and pay for your employees. This can be done without impacting your pay cycles or cashflow.

Manual Advances

Current solutions for many employers often include manual advances. This is often time-consuming, adding to workload of already busy payroll, and can indicate a need for a more streamlined approach, like On-Demand Pay. While it is great employees can requestion a portion of their earned wages early, many may be too proud or private to ask to a manual advance. This may mean that they end up using high-cost alternatives, such as Payday Loans, anyway.

2. Understand the Earned Wage Access Code of Practice

Familiarise yourself with the latest Earned Wage Access Code of Practice to ensure On-Demand Pay provider’s compliance with industry standards and employee rights. Ensure that any provider you’re considering adheres to these guidelines to ensure that the service provided will be in both your organisation’s and employee’s best interest.

3. Evaluate Employee Needs Amidst the Cost of Living Crisis

Consider the financial stress your employees may be facing, especially given the current cost of living crisis. On-Demand Pay could alleviate some of this burden by providing timely financial resources.

Your could conduct surveys or gather feedback to understand if your workforce would benefit from or desire an On-Demand Pay services.

Conclusion

By carefully reviewing these considerations, you can better determine if On-Demand Pay is a suitable solution for your workforce. Providing flexibility in wage access can be a significant step towards enhancing employee satisfaction and financial stability.

If you’d like to learn more about the right questions to ask the On-Demand Pay providers you are talking to, check out this blog post. Alternatively, book in to talk to one of our On-Demand Pay specialists below: