In our fast-paced world, where everything is craved immediately and on-demand, getting paid isn’t any different. More and more companies are adopting flexible and on-demand pay. But how does it help you, as an employee?
Below, we’ve collected some stories to show just a few ways in which employees are making the most of getting paid on-demand.
We already know most people live paycheck to paycheck, and having access to your money right away greatly reduces stress when it comes to paying bills or covering unexpected expenses.
An on-demand pay user at Crescent Bank, Ben Sanders, shared his recent story: “There was a situation where it was a couple days before pay day, I went out to my car and found my battery died, without notice. I had to move funds over to pay for this new battery. So, I was definitely grateful for having [on-demand pay] because if I didn’t, I don’t know what I would have done.”
My favorite thing is the peace of mind it gives me. We all fall on times where we need extra funds before pay day.
It isn’t a shock that the highest stressor among Americans is their finances. In fact, a recent Ceridian survey conducted in partnership with The Harris Poll found that only 33% of U.S. workers feel confident about their personal finances when thinking ahead to 2021.
Having access to your earned pay without having to wait for a formal pay day means you have more control over your cash flow in a way that fits your life. With more fluid management of your finances, you’ll be better able to manage your overall financial well-being, whether that means paying bills on time, cutting out stress-inducing debt, or being more proactive with saving for the long-term. According to HR Daily Advisor, access to earned pay helps to reduce anxiety and stress, and aids in financial well-being.
I feel like I have authority over my money and I’m able to access it whenever I want. I’m someone that lives paycheck to paycheck. So, being able to access money earlier is a really big benefit and helps me out during the week when I would be tight on money.
Once your stress levels decrease, the fog begins to clear, your mindset shifts, and you’re able to focus on your task at hand.
PwC conducted a research study on financial stress among employees in the U.S. It found that almost half admitted to being distracted by personal finances at work and spent several hours a week, during work hours, working on their own finances. When that stress is lifted, it instantly frees up time and declutters headspace to properly focus and deliver higher quality work.
It allows me to feel more in control of my financial situation. Knowing what I’ve earned and seeing that available, and that I can take it out in case of an emergency or just if I want to, it feels good.
Having a same-day pay solution allows for financial inclusion. That’s especially true if you’re an employee that doesn’t have a bank account or use a pay card. Some on-demand pay solutions offer a digital account and even a pay card, allowing for maximum flexibility without the need to go to your bank.
Having on-demand access to my pay is a benefit because it's convenient and easy to get if you want.
With 80% of employees feeling financially stressed, having access to your earned pay on your own terms, is pretty life changing. Imagine you are five days away from payday. Your daughter needs new running shoes to participate in her big game tomorrow. You don’t have enough in your account to pay for them right now – But wait – there’s a way to make this possible. How? You can access your earned pay between pay cycles. You cheer your daughter on, and she wins the game. Problem solved.