Why On-Demand Pay should be offered with Payroll Savings

In today’s fast-paced world, financial stress is a significant concern for many employees. Offering Payroll Savings alongside On-Demand Pay be a game-changer for businesses aiming to boost their workforce's financial wellbeing. Here’s why:

What is On-Demand Pay?

On-Demand Pay, also known as Earned Wage Access, is a tool that allows employees to access their earned wages before the traditional payday. This flexibility helps them manage unexpected or emergency expenses without resorting to high-cost debt options such as payday loans or credit cards. These alternatives often come with high interest rates, fees or payback periods. Read more about On-Demand Pay here.

What are Payroll Savings?

Payroll Savings schemes enable employees to automatically set aside a portion of their paycheck into a savings account. By promoting a regular saving habit, employees can build an emergency fund, save for future goals, and enhance their financial security. Providers like Level offer high interest rates and easy access to these savings for when they are needed. Read more about Payroll Savings here.

How On-Demand Pay and Payroll Savings promote financial wellbeing:

1. Avoidance of High-Cost Debt:

On-Demand Pay provides an essential alternative to borrowing at high-interest rates. Employees can access their money when they need it, reducing the likelihood of turning to costly credit options.

2. Encouragement of Regular Savings:

Payroll Savings help people build a savings habit, even for those who have never had savings before. The automatic nature of Payroll Savings mean employees are less likely to skip saving, fostering a culture of financial responsibility and planning.

3. Promotion of Financial Wellbeing:

These services complement each other to promote overall financial health. By avoiding debt and saving regularly, employees can achieve greater financial resilience and wellbeing. They will be better equipped to deal with emergency and unexpected financial shocks with their own hard earned money.

4. Convenience and Integration:

With providers like Level offering both services together in one app, the implementation becomes seamless. Employees benefit from an integrated approach to managing their finances, while employers can offer a comprehensive financial wellbeing package.

Implementation Considerations

Implementing these benefits can be streamlined by partnering with providers like Level, who offer comprehensive solutions that integrate Earned Wage Access and Payroll Savings within a single app.

Level integrates with many of the UK’s leading payroll and workforce management systems to make this process of implementation as smooth as possible, see these here. These integrations simplifies the process for both employers and employees, ensuring a smooth transition and optimal utilisation of the services offered.

To learn more about how Level can integrate with your systems, and how our offering can work for your organisation, book a demo below.