We've changed the way we work - should we change the way we pay?
Even before COVID-19 forced many employers to offer remote working, there was a change in attitudes to working from home. According to data from the Office for National Statistics, between 2008 and 2018 there was a 75% increase in UK employees working from their own home.
Now that we’ve had no choice but to try remote working, even those who were previously against it are seeing many benefits. Fewer distractions have lead to increased productivity and many workers are finding their personal wellbeing has improved as they find themselves with more time that they would normally use to commute.
But what if changing the way we pay could also contribute to increased productivity and improved wellbeing?
Why do we pay monthly?
In the 1960s, the Payment of Wage act was introduced, allowing employers to pay by cheque on a monthly basis – it was better for cash flow and less time-consuming than creating individual pay packets on a weekly basis.
Payroll has remained that way to this day for the majority of businesses, however, monthly payroll doesn’t fit with the modern way of living – we live in an on-demand world where employees have come to expect the ‘consumerisation’ of their experience at work via the latest technological innovations.
One such innovation which offers the immediacy and flexibility that we’ve come to expect as consumers is on-demand pay.
Popularised in the United States, on-demand pay allows employees to access pay they’ve already earned at any time through the month. It essentially changes the way a company pays, without impacting normal payroll processes.
How can on-demand pay improve productivity and wellbeing?
Companies that offer on-demand pay have seen increases of around 22% in staff productivity, decreased staff turnover by up to 25%, and an increased applicant pool for advertised roles.
On-demand pay also provides a financial safety net to employees reducing the pressure should they have unexpected expenses or struggle with their personal cash flow – 22% of employees with financial worries said it impacted their productivity at work, so removing that worry can have a clear impact on wellbeing and productivity.
It’s clear that increased flexibility, whether that’s in how we work, or how we pay, leads to a more motivated, engaged and productive workforce. Find out more about offering more flexible pay options to your employees via Access EarlyPay below.
