On-Demand Pay: Redefining How Employees Access and Manage Their Pay
Introduction
In the modern workforce, the traditional monthly or bi-weekly pay cycle is becoming obsolete. With the rise of on-demand services and the gig economy, more and more employees are seeking immediate access to their earned wages. This has led to the emergence of On-Demand Pay as a popular solution for both employers and employees.
What is On-Demand Pay?
On-Demand Pay, also known as Earned Wage Access, is a service that allows employees to access their earned wages any time than waiting for their scheduled payday. It works by connecting directly with an employer's payroll system and providing employees with real-time updates on their earnings. Read more here.
How Does On-Demand Pay Work?
The process of On-Demand Pay is fairly straightforward. Employees sign up for the service through an app. When they work, their earnings are calculated and updated on the app. They have the option to withdraw a portion of their earned wages to their bank account at any time they need it. All without payroll needing to make a manual advance or manual deduction.
Benefits for Employers
On-Demand Pay offers several benefits for employers, including:
Attracting and Retaining Talent: In today's competitive job market, offering On-Demand Pay can be a unique selling point for employers looking to attract and retain top talent. Companies which use Level have seen up to a 50% reduction in staff turnover.
Increased Employee Satisfaction and Engagement: With immediate access to their earned wages, employees feel more in control of their finances and are more likely to be satisfied and engaged with their work. Absenteeism is reduced by 13% when On-Demand Pay is offered.
Reduced Payroll Processing Costs: On-Demand Pay can help streamline the payroll process, reducing administrative costs associated with handling manual advances or manual deductions.
Conclusion
On-Demand Pay is revolutionizing the way employees receive their wages. With its many benefits for both employers and employees, it's no surprise that this service has gained popularity in recent years. As technology continues to advance and reshape the workplace, On-Demand Pay will likely become an essential tool for companies looking to stay competitive and support their workforce's financial wellbeing.
Book a demo with one of our On-Demand Pay specialists and learn how Level can work for your company.