Here’s why CHROs are deploying on-demand pay to retain and attract top talent by elevating their employee experience
In Ceridian’s 2023 Pulse of Talent Report conducted in partnership with Hanover Research, over 8,800 employees worldwide were surveyed and 30% of respondents said their current employer only makes them feel slightly valued or not valued at all. In today’s world of work where the competition for talent is unprecedented, organizations need to infuse a consistently positive employee experience to win and retain their people. Having an efficient and attractive employee experience is at the center of attracting and retaining top talent. Most leaders are on board with the idea but worried about the reality of what the financial or productivity cost might be on their already overworked team.
One savvy solution among leading Chief Human Resource Officers (CHROs) is offering on-demand pay as part of their talent retention and attraction strategy. Let’s explore some key areas of how on-demand pay can positively impact your employee experience and increase your organization’s competitive edge.
How does on-demand pay improve the employee experience?
The impact of financial stress on today’s employees is more than ever before. And it isn’t just affecting them personally, it’s affecting the success of your organization. Employees spend several working hours thinking about their personal finances each day, impacting their productivity and performance. Offering employees this type of financial wellness benefit helps to alleviate stress and contributes to a more positive experience at work - boosting productivity. An SSRS study conducted in partnership with Ceridian on Dayforce Wallet users found that 81% said Dayforce Wallet provides them with freedom and accessibility. And 63% reported having access to Dayforce Wallet positively impacted their view of their employer.
By enhancing the employee experience with greater financial empowerment through on-demand pay, both the employer and the employee stand to benefit. For example, the same SSRS study referenced above, found that 56% of Dayforce Wallet users that were surveyed between the ages of 18-29, said they were more likely to pick up extra shifts knowing they’ll have access to their earned pay by the end of the shift. This helps build natural brand affinity and engagement, leading to a greater overall experience for your people, and greater performance for your organization.
Why does on-demand pay increase retention and attraction?
Gallup, a leading global analytics and advice firm, recently asked over 13,000 U.S. based employees what the most important thing was when accepting a new job offer. Sixty-four percent said a role that allowed for greater work-life balance and personal wellbeing was “very important” to them. To no surprise, personal well-being is at the forefront of decision-making for most new hires, especially in such a competitive talent market as it is today.
Providing an attractive employee experience by including on-demand pay as a free financial wellness benefit for your people can boost your organization’s competitive advantage. In the study referenced before, 45% of Dayforce Wallet users aged 18-29 said Dayforce Wallet was one reason they’re staying with their current employer, and 20% said they wouldn’t work for a company that didn’t offer on-demand pay as a benefit.
What is the impact on employees and the HR team when partnering with an on-demand pay provider?
As a leader you’re already concerned with how thinly stretched your employees are, including your HR team. The right on-demand pay provider understands this and can enable your organization to offer this benefit with no hidden fees and no additional work.
Supporting employees in a way that they actually need is the core of a successful retention strategy. Where some hourly or part-time employees may not be eligible for health and wellness benefits, on-demand pay can help address this need without impacting benefits budgets. For example, as an extension of Dayforce Payroll, Dayforce Wallet delivers on-demand pay for free to employees and employers. The Dayforce Wallet Mastercard™ uses an interchange model to function similarly to a debit card, so employees avoid hidden fees and high interest, and employers enjoy the administrative convenience of a truly single solution. Plus, a single employee support model, for anything from password resets to transaction disputes, takes the administrative load off HR entirely.
The benefits of including on-demand pay as part of your talent retention and attraction strategy are clear: It’s easy and low-touch for your team to implement and maintain, it’s intuitive for your people to use, and it’s free for both employers and employees. Offering this type of financial wellness benefit is a strategic way to elevate your current employee experience and boost your competitive advantage.