To address the needs of the modern workforce, leading companies are adopting new tech solutions to elevate the employee experience, and make existing processes more efficient.
The payroll landscape in particular is undergoing a shift, as employers look to evolve their pay experience to be more flexible and satisfy employee demands for instant gratification. With on-demand pay catching on in the marketplace, here are some key things HR leaders and payroll practitioners should be aware of.
On-demand pay doesn’t have to place additional administrative burden on payroll administrators. If your payroll solution brings time and pay together, on-demand pay is an extension that lets employers pay employees their earned wages when they request it.
Administrators can either review each request, or set the system up for automatic payment approvals.
If you use a single payroll solution that provides continuous calculation, employee wage requests are accurate and actual amounts, not predictions based on perceived work time. As well, continuous calculation helps ensure that taxes and garnishments are accounted for in the pay cycle.
While employees have more flexibility in accessing their wages with on-demand pay, payroll administrators still have control of the process and functionality. They can define and set limitations around minimums, maximums, requests per period, and more, based on their business needs.
As an extension of your single payroll system, on-demand pay also follows the same security measures as the rest of your solution, so these areas are managed with the same rigor.
Best-in-class organizations today are defined as people-centric. A people-centric workplace is one that designs its employee experience – processes, programs, and systems – around its employees’ drivers and needs.
An organization’s greatest asset is its people. They play a key role in positively contributing to your business outcomes and creating a strong culture. Employers, then, need to provide their people with the structures and support that boost productivity, engagement, and help them be their best.
Employees today are overwhelmed, and financial stress is no exception. Stress can negatively impact productivity and increase the potential for employee absenteeism, so leading companies are taking on more responsibility in supporting employees in their financial and mental well-being. New solutions and technologies, such as on-demand pay, can help ease the burden on employees and better support them in their financial wellness.
Read next: How to simplify and save time on payroll