Recently, I sat at one of my favorite coffee shops with a friend. As we drank our coffee and talked, she mentioned to me a financial goal she has for 2023: paying off a loan that she has kept open far too long.
It was hard for her to think about how to start chipping away at the payoff, and she confessed that she felt overwhelmed. Rightfully so. Whether it’s saving up for a vacation, paying off a loan, or covering for unexpected vehicle costs, it can be tough to think about where to start when the finish line seems so far away, especially as living costs continue to increase. If you’d like to offer solutions to your employees, contact us now.
Controlling her payday
Fortunately, my friend’s company recently switched to Fingercheck as their payroll provider. I suggested that she use the Pay On-Demand feature and access a portion of her accrued income ahead of her scheduled payday and then use those funds specifically to pay down her loan. That way, when payday came, she would know the loan payment was already made.
She loved that idea. She felt in control by accessing the wages she’d earned and having a simple plan that she could implement so it didn’t seem so overwhelming. And she’s not alone in wanting to have better control over her wages.
Earned wage access is here to stay
A 2022 Global Earned Wage Access (EWA) report by Everest Group said it like this: “EWA solutions offer a win-win situation for all stakeholders involved — employers can access a low-cost solution that generates goodwill for them, while employees can access wages they have earned, whenever required. Due to evolving employee expectations around control, flexibility, and fairness, and the fast pace of consumer FinTech and instant services expansion, EWA solutions are expected to displace the notorious payday loans and become the new norm for payroll. In conclusion, employers that sponsor the EWA on behalf of their employees can gain a definite edge in the war for talent as this model is better positioned to support employee well-being.”
Did you catch that? “Displace the notorious payday loans and become the new norm for payroll.” This means the traditional way that we’ve worked and been paid is ripe for disruption, but in a good way.
Think about it. For decades, most of us have been paid the same way: We work, and then two weeks or a month later, we get paid.
But the world is changing. Prices are high. People need wage accessibility and financial equity.
Business owners can’t afford to turn a blind eye when they can do their part in strengthening the financial wellness of their employees.
As my friend learned, Pay On-Demand is one way she can have control over her finances.
Fingercheck’s Pay On-Demand feature is a financial wellness benefit that gives employees early access to their unpaid wages. Our Pay On-Demand feature is integrated with the Fingercheck General Ledger to your accounting system — so we do the work of reconciling the debit and credit. No math is involved on your end! And, our Pay On-Demand feature has been available since 2018. We know it works.
If you’re a small business owner who needs talent, it’s imperative that you do three things in your recruiting and retention efforts. The three things you must do are:
- Offer a modern pay experience. Younger workers are digital natives. They’re used to instant gratification services — and those expectations are extended to employers. Fast and flexible payments with a seamless digital solution are must-haves.
- Provide financial flexibility. Whether it’s paying weekly, offering earned wage access or providing other financial wellness tools, your employees need accessibility and flexibility. Living expenses, housing and loans take up a huge chunk of their paychecks, and liquidity is important.
- Stay ahead of the market. Whether on Main Street or Wall Street, employers are on the hunt for talent — and ways to retain that talent. As a small business owner, you can compete with the best of them by differentiating your business with how and when you pay.
That’s where we can help you. Fingercheck offers everything you need, from payroll services to worker’s compensation, to help you run your business. Learn how we can be your MVP. Book a call now.
Cheers to good vibes in 2023!