Why You Should Consider a Provider That Offers Both Payroll Savings and On-Demand Pay
Financial stress is a growing concern among employees today. 33% of UK workers say that their finances have impacted their mental health. While more organisations are offering financial wellbeing benefits to help mitigate these challenges, there's a growing need to provide holistic solutions, such as ones which combine On-Demand Pay with long-term financial tools such as payroll savings plans.
What Is Payroll Savings?
Payroll Savings refers to a financial benefit that allows employees to save a portion of their salary directly from their paycheck before it reaches their bank account. It's a practical and automatic way for employees to build up savings over time. It takes willpower once to set it up, and then the rest is automated to build an ongoing saving habit.
How Payroll Savings Work
Direct Deductions: The employees choses how much they would like to contribute to their savings every month.
Automated Process: Funds go directly into a designated FSCS protected savings account, making the process simple and effortless.
Flexibility: Most payroll savings schemes allow employees to adjust the amount they save and withdraw funds when necessary.
What Is On-Demand Pay?
On-Demand Pay, often referred to as Earned Wage Access, is a service that allows employees to access a portion of their earned wages before their usual payday. This innovative financial solution helps employees bridge the gap between work and pay, giving employees the ability to cover unexpected expenses without relying on high-interest loans or overdrafts.
How On-Demand Pay Works
Instant Access: Employees can see their available balance and withdraw a portion of their already earned wages when needed.
Flexible Usage: Whether it’s a car repair, an unexpected medical bill, or other emergencies, On-Demand Pay provides immediate financial relief.
Improved Cash Flow: Employees control when and how they access their pay, reducing dependency on expensive predatory credit products.
Why Should Payroll Savings and On-Demand Pay Be Offered Together?
When offered together, Payroll Savings and On-Demand Pay create a financial wellbeing ecosystem that empowers employees to meet both short- and long-term financial needs. They complement each other by addressing two critical aspects of financial health.
Manage Immediate, Unexpected Costs
Life is unpredictable, and unexpected expenses can throw an employee’s financial life off balance. On-Demand Pay offers access to earned wages when employees need immediate funds to manage emergencies, preventing the need to turn to payday loans or credit cards. This reduces financial stress and keeps them focused on their work during tough times.
Build a Secure Financial Future
While On-Demand Pay provides for short-term needs, Payroll Savings plans enable employees to prepare for the future. By setting aside a small portion of their salary each month, they can begin to establish a financial buffer that works as their safety net over time.
When paired, these two financial benefits ensure that employees have access to resources regardless of their situation. Need money for an emergency car repair? On-Demand Pay has you covered. Want to save for a deposit on a home? Payroll savings steps in. Together, these services promote financial security and sustainability.
Conclusion
If your organisation is considering introducing or optimising its financial benefits strategy, start by exploring providers that offer both payroll savings solutions and on-demand pay. Together, they are a game-changing combination that addresses today’s financial wellbeing challenges head-on.