In today’s society, we balk at waiting for anything. Want to learn another language? You can stream a course on YouTube in seconds. Owe your friend a few bucks? You can transfer funds almost immediately.
We don’t want to wait for our pay either, and many of us can literally not afford to.
Although it’s not universally used by employers yet, on-demand pay is growing in popularity. Organizations understand that their people are experiencing stress overload, and that financial insecurity results in increased absenteeism and decreased engagement and morale. Employees scrambling to cobble together rent money are also not as focused at work and make more mistakes. In greater numbers, employers are realizing that caring for employee well-being is good for business.
If you’re looking for a new job, consider making on-demand pay one of your selection criteria. And if you’re lucky enough to already have it, here’s how you optimize the situation.
Talk to your payroll administrator: The first step in making on-demand pay work for you is understanding how it works. Remember that although this pay arrangement gives you greater flexibility, your company still controls the process. Make sure you’re clear on the particulars, including minimums, maximums, and requests per pay period.
Avoid late fees: Your landlord, utility company, and credit card provider want their money the day it’s due whether you’re waiting for your paycheck or not. Leverage your on-demand pay to facilitate timely bill payment.
Stay out of the debt cycle: In the past, an unanticipated emergency expense often sent workers into a troubling financial spiral. Because payday had not yet arrived, employees might have borrowed money via a payday loan. On-demand pay puts your earnings to work right away so you can deal with a problem once and not have to think about it again.
Don’t spend gratuitously: If you haven’t had access to your pay this quickly before, it can be tempting to spend it on your big-ticket wish list items. While self-care activities are appropriate to reward your hard work, don’t take off for Las Vegas the second as your pay is available. Just because the money is there sooner, doesn’t mean it should be spent sooner.
Improve your budgeting: Many on-demand pay system features help employees with general financial management, such as checking balances, tracking transaction histories, and categorizing expenses. Take advantage of as many of these as you can to receive the most out of your on-demand pay benefit.
When used to the best of its ability, on-demand pay can provide a huge boost to your emotional and financial health. Don’t let its benefits slip through the cracks!
Check out how Nipro PharmaPackaging employees can now access their earned pay when they need it, with on-demand pay.