On-Demand Pay in Care: A Reflection from the Care Show
The Care Show in Birmingham is the biggest event of the year for anyone in the social care sector. It’s a chance to connect, share insights, and discuss the challenges and innovations shaping our industry. We were glad to be able to exhibit at this year’s event and gain insight from leaders in the industry. This year, one conversation that consistently came up was the persistent struggle with staff retention and the heavy reliance on agency workers. These aren't new problems, but they are becoming more critical. So, what can be done?
The Enduring Challenges in Social Care
High staff turnover has long been a major issue in the care sector. The demanding nature of the work, coupled with often modest pay, can lead to burnout and a constant cycle of recruitment. When dedicated staff members leave, it creates instability not just for the organisation but, more importantly, for the people receiving care who rely on familiar, trusted faces.
This staffing gap often forces care providers to turn to expensive agency staff to fill shifts. While agencies provide a necessary stopgap, this reliance comes at a significant financial cost. The higher rates paid for temporary staff strain already tight budgets, diverting funds that could otherwise be invested in training, facilities, or improving staff wages. It’s a reactive, costly cycle that does little to address the root causes of staff churn.
What is On-Demand Pay?
On-Demand Pay, also known as Earned Wage Access (EWA), is a simple yet powerful concept. It’s a system that allows employees to access a portion of their earned wages before their official payday.
Instead of waiting for the end of the month, a care worker can withdraw a percentage of the money they have already earned for the shifts they’ve completed. This isn't a loan or an advance; it's their own money, made available to them when they need it. The process is typically managed through an easy-to-use app, giving employees control and flexibility over their finances.
How On-Demand Pay Addresses Sector Challenges
Implementing an On-Demand Pay system can directly mitigate the core issues of high turnover and agency dependence. Here’s how:
1. Reduces Financial Stress for Employees
Many care workers live from one paycheque to the next. Unexpected expenses, such as a car repair, a medical bill, or a sudden family need, can create significant financial stress. Without access to their earned money, employees may be forced to turn to high-interest payday loans or credit cards, leading to debt and anxiety.
By providing access to earned wages, On-Demand Pay acts as a financial safety net. It empowers staff to manage their money more effectively, reducing stress and improving their overall wellbeing. A happier, less-stressed workforce is more likely to be engaged, productive, and loyal.
2. Boosts Staff Retention and Reduces Turnover
Financial wellbeing is a key driver of job satisfaction. When employers offer benefits that genuinely support their staff's financial health, it demonstrates that they are valued. On-Demand Pay is a highly attractive benefit that can set a care provider apart in a competitive hiring market.
Organisations that have introduced this flexibility often see a marked improvement in staff retention. Employees are less likely to leave for a similar role elsewhere if their current employer provides a benefit that gives them greater financial control.
3. Decreases Reliance on Agency Staff
A more stable and motivated workforce naturally leads to fewer unfilled shifts. When your own staff are more willing and able to pick up extra hours, knowing they can access their earnings quickly, the need for last-minute agency cover diminishes.
This shift reduces operational costs significantly. The money saved on expensive agency fees can be reinvested back into the organisation, creating a positive feedback loop of improved staff benefits, better resources, and higher quality care.
A Strategic Step Forward
The conversations at the Care Show confirmed that the care sector is actively seeking innovative solutions to its long-standing problems. While there is no single magic bullet, On-Demand Pay offers a practical and impactful way to support staff, improve retention, and build a more resilient financial model. By giving employees the financial flexibility they need, care providers can foster a more stable, dedicated, and motivated workforce ready to provide the best possible care.