Building a Strong Business Case for On-Demand Pay

Introduction

Attracting and retaining top talent is one of the most critical challenges for businesses today. Employees are no longer solely enticed by traditional benefits like healthcare or retirement plans. Financial flexibility and wellbeing have become a significant consideration, and that's where On-Demand Pay steps in.

On-Demand Pay, or Earned Wage Access (EWA), allows employees to access their earned wages before the typical payday. For forward-thinking companies, this innovation isn’t just a trendy perk; it can directly impact recruitment, retention, and employee satisfaction. Building a business case for On-Demand Pay requires clear communication of its advantages for both employees and employers.

Why On-Demand Pay Matters

Meeting Employee Expectations

Employees increasingly demand flexibility in all aspects of their lives, including how they are paid. 88% of UK workers don’t feel confident with their finances. With On-Demand Pay, workers can access funds when they need them most, alleviating financial stress and helping them stay focused at work.

For younger generations like millennials and Gen Z, the immediacy of gig work payments has become the standard. By offering similar flexibility, businesses can attract modern job seekers who value on-demand compensation options.

Reducing Turnover and Costs

Employee turnover is costly, both financially and operationally. Depending on the industry, replacing an employee can cost anywhere between 6 to 9 months of their salary in recruitment and training expenses. Employees with access to On-Demand Pay are more likely to stay with their employers, reducing staff turnover by up to 50%, and associated costs.

Furthermore, happier employees who experience less financial stress are more likely to perform well and advocate for the company, improving overall workplace morale and productivity.

Enhancing Employer Branding

Offering innovative benefits like On-Demand Pay is a way for companies to stand out in increasingly competitive job markets. It sends a strong employer branding message that an organisation cares about the wellbeing of its workforce. Such a reputation can prove valuable, especially for industries like healthcare, retail, and hospitality, which often struggle with high employee churn.

Ensuring Shifts Are Filled

Many industries work with irregular shift patterns, and often risk having unfilled shifts on the rota. For industries such as care, this means that employers need to bring in agency workers who are expensive and don’t know the residents. On-Demand Pay can help reduce unfilled shifts by up to 62%. When staff know they can access their earnings soon after their shift, they are much more incentivised to take on overtime.

Building the Pillars of Your Business Case

A strong business case for On-Demand Pay requires highlighting its tangible benefits while aligning these with your company’s goals. Here’s how to build yours.

• Step 1: Identify Pain Points to Address
  Start by identifying organisational challenges that On-Demand Pay could solve. Are high turnover rates reducing efficiency? Are employee surveys revealing financial stress as a recurring concern? Define the problems clearly to make the solution resonate.

• Step 2: Explain How It Works
  Outline a clear process for delivering On-Demand Pay, including how the solution integrates with existing payroll systems. Use simple and straightforward language to ensure all stakeholders, even those unfamiliar with the technology, can understand the process.

• Step 3: Provide Evidence-Based Results
  Support your business case with the statistics mentioned earlier and industry-specific case studies. For example, highlight companies that successfully implemented On-Demand Pay, showing improvements in retention and morale.

• Step 4: Align it with Business Goals
  Explain how offering On-Demand Pay aligns with overarching company objectives. Whether it supports reducing turnover, improving employee productivity, or enhancing employer branding, framing it through this lens strengthens its strategic relevance.

Take the Leap

On-Demand Pay represents more than just an employee benefit. It is a bold move towards modernising wage access, improving employee well-being, and achieving better organisational outcomes. Companies that act now to implement flexible pay structures will gain a significant competitive edge in recruiting and retaining top talent.

Start your exploration today and position your business for the future. If you're ready to see how Earned Wage Access could transform your workplace, explore trusted providers or request a free consultation with an expert.