What do you do when you cannot afford to pay a bill? Almost all of us have been in this position at some point in our lives. Payday is next week, and we just don’t have the cash right now. For almost six million people across Australia, this situation is a recurring reality. For most of them, the solution is to borrow from family and friends, use a credit card, use funds from important savings accounts or apply for a potentially dangerous payday loan.
None of these options benefit a person’s financial wellbeing. Late fees can rack up fast, and high-interest loans can cause serious problems if they’re allowed to spiral out of control. One of the most concerning aspects of this issue is that most Australians in this position have already earned sufficient wages to pay off these bills on time. They are simply at the mercy of their next payday, waiting for their funds finally hit their account. This is what we call the unfortunate ‘pay day reality’.
Earned Wage Access is the Solution
Providing your staff with on-demand access to their earned wages enables flexible access to funds until their next payday arrives. Mobile apps like Paytime allow your workforce to access their earned wages whenever they want, for a small access fee less than the cost of a cup of coffee. Paytime is a great tool to establish financial wellness in your employees and reduce financial stress by equipping them with a means to cover any emergencies that may come their way. Earned Wage Access is not a loan. Your staff are merely accessing a portion of wages that they’ve already earned before their regular payday.
How Does Earned Wage Access Work?
Getting started with apps like Paytime is straightforward. Once set up, any of your staff in Australia can download the app to their phone and start accessing their money before their pay day. The app integrates directly with your existing payroll software, allowing employees to see how much they have earned at the end of each workday. They can then choose to transfer any portion of their earned pay to their bank account whenever they like, helping them cover any unexpected bills or expenses.
Payroll then runs as normal on their regular payday. Any funds that have already been withdrawn by the employee are subtracted from their next payslip (under ‘deductions’). There is no need to change your existing payroll process or set up any complicated new software!
The Future of Employee Pay
Most employees will not mind paying a small charge to access their earned wages when they need it. Those looking for a job are almost twice as likely to accept a 13% lower salary when Earned Wage Access or salary advance is an option. However, many employers subsidise the fee and choose to offer the service as a valuable employee benefit that the employee does not need to pay for. Employers also benefit from increased employee retention, higher engagement and improved competitiveness in the labour market – Earned Wage Access is truly a win-win!
Offering real-time access to earned wages to your workforce is a significant benefit to both parties. If your company wants to empower your employees to improve their financial wellbeing by enabling flexible on-demand access to their earned wages, contact Paytime today!
