Pay-on-the-Day VS Pay DayPosted in : Supplementary Articles NI on 2 February 2023 Issues covered: Cost of Living Crisis; Pay on Demand; Financial Wellbeing
Cost-of-Living Crisis Creativity
The cost-of-living crisis is at the forefront of everyone’s mind at the moment, and many businesses are having to get creative in ways to support their staff during times of financial difficulty, when a pay rise is not an option. As such, we are seeing a growing trend in the Pay-on-Demand or Pay-on-the-Day, as some people are calling it, model being put in place in the UK amongst workforces. The pay-on-demand model allows employees to access the wages they have earned before their scheduled payday.
Perk or Park it?
This is already a widely used model in America and some of Europe, and has been for many years, so it’s not a new concept. In fact, a survey by the Workforce Institute at Kronos suggests that more than 50% of employees across the healthcare, retail and manufacturing industries said that they deem pay-on-demand a more attractive benefit than additional paid time off. If it’s such a success overseas, and an attractive benefit in a time of difficulty retaining and attracting staff, then could it be something to consider as a financial wellness benefit? But like everything, there are two sides to every story, and it’s not all rosy in the garden.
The main concerns are that this model doesn’t consider an employee’s financial health, and there is evidence to suggest that it can make employees finances worse and not better if they can’t manage their money. Not only that, but it can cause cashflow problems for smaller businesses.
Food for Thought
We live in a generation of instant-everything, should money earned be the same?
If you’ve been thinking about ways in which you can support your employees and have your business thrive in the cost-of-living crisis, our Key Priorities in HR during a Cost-of-Living Crisis full day event will help you gain some of the additional skills you or your team will need. Some of what our expert speakers will discuss include:
- the importance of staff engagement and how to nurture this.
- how to boost your employees and organisations financial resilience.
- how to tap into the talent of your current staff to avoid relentless recruitment; and lots of other important.
- Supporting a team through a crisis and how to have sensitive conversations.
For more information visit:
ROI https://bit.ly/3jbI4W1This article is correct at 02/02/2023
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