The When of Payday
What comes to mind when you hear the term “payroll?” Most people focus on two parts of the process. 1. How much an employee is paid. For example, $20 an hour or $60,000 per year. Or 2. How an employee is paid. Are they an hourly worker, contractor, salaried employee? This means most businesses are ignoring a third, and critical OR essential, variable – WHEN an employee is paid.
Why wait? If an employee has already worked 40 hours before the next payday, and needs access to $100 of their wages to pay off a credit card bill and avoid interest fees – why should they have to wait an extra week for the money they’ve already earned?
It’s just stuck. The employee had already worked for the money he/she was asking for. It was just stuck in payroll plumbing, waiting to be accessed. How was that the employee’s fault? If they’ve already earned the money, don’t they have a right to use it?
Earned Wage Access answers this question with a simple YES. As an employer you can help alleviate some of the financial stress and empower your employees by humanizing your payroll. When you prioritize your workers, you are part of creating a new, people-focused payroll that challenges outdated pay schedules to the benefit of the employee and the employer.
In fact, 68% of employees with access to Payactiv, when asked, said they primarily use their earned wages for food purchases, while over 50% of them said they spend it on transportation and utilities.