THE on-demand salary is a modality that is increasingly adopted by companies that offer benefits really effective for your employees. Generally, wages are paid on the fifth business day of each month. However, this tradition is adapting to meet the realities and changes in the lives of workers.
Anyone who is used to paying bills month by month knows: sometimes it can be difficult to reconcile the salary and the due dates of the boletos. To give breath to employees, many companies use wage advances. In this case, the on-demand salary is the smartest solution.
Check out in this article the advantages that this benefit can bring to the company and its collaborators.
What is on-demand pay?
THE on-demand salary it is a remuneration model in which the employee has immediate access to the salary proportional to the days already worked in the month. That way, he doesn't have to wait for the “official” payday to use the money.
As a result, wages on demand are essential to help workers better control their finances. This avoids many problems such as late payment of bills, the use of a credit card or overdraft, and also the financial stress caused by situations like these.
How to implement salary on demand?
In practice, to implement the on-demand salary, the company should have good technology at its disposal. This will enable her to make payments in an intuitive and efficient manner, as in HR Consultants UKy platform. Through an app integrated with Company HR, the employee tracks his earnings throughout the month and chooses to receive them whenever he wants.
From the moment the request is made by the employee, the app sends the money immediately to the registered account. Days later, when the company makes the full payment, the money in advance is returned to the platform.
In this way, the company is able to offer the on-demand salary according to the CLT rules, with regard to payment terms, which is very important. It is also necessary to be aware of the rules on the thirteenth, vacations, bonuses and other forms of remuneration, so that all of them are respected.
THE demand wages it is extremely advantageous for the organization, as well as for its employees. Offering this benefit, the company increases its productivity and competitiveness in the market, in addition to taking better care of financial well-being of all its employees.
Below, check out more details about the benefits of on-demand pay.
Financial stress reduction
One of the main triggers that cause stress in the population is the concern about money. The fear of not being able to pay the bills and accumulate high interest rates are among the most common problems in the lives of UK citizens, which harms – and a lot – the quality of life.
Honoring day-to-day commitments is already complicated and stress is even greater when unforeseen events arise. Unexpected expenditures have great potential to cause gigantic holes in the personal, family and corporate (of the company) budget.
Statistics confirm this fact: According to the Central Bank, 60% of UK citizens are unable to afford an unplanned expense without resorting to relatives, friends or loans bank accounts.
In this scenario, the on-demand salary helps many people. After all, employees now have access to money at the most convenient time. Whether to pay a bill or deal with an unforeseen event.
With the bank account in order and the debts up to date, or better, without debts, the financial stress decreases. This contributes to increasing the employee's well-being in relation to their duties, as well as improving the relationship with teammates and satisfaction in the work environment.
More control over finances
How demand wages, employees gain more control over how and when to use their money. This feeling is very important to increase self-confidence, in addition to keeping financial issues up to date.
Therefore, we can say that instant access to wages has advantages that go far beyond alleviating financial stress. It is, in fact, about empowering employees in relation to money, making them better face all other possible day-to-day challenges.
Excessive concern for money also has another negative impact: the fall in productivity.
A person who has been using the overdraft for a long time, and who pays 300% interest per year, probably cannot think of anything other than to get out of this situation and solve his problem. Let's face it, it's hard to concentrate and deliver good results.
In addition, dealing with possible collections, debts and delays in paying bills helps the employee to be less productive.
The wage on demand it is a way to keep the remuneration always accessible to the employee, so that he can solve his financial issues more easily. Relieving this concern is critical to ensuring that the performance of the team is always on the rise.
Contributing to the financial health of employees is an excellent measure to ensure an engaged team. When implementing policies like the on-demand salary, the company increases employee loyalty, motivation and satisfaction.
With motivated employees, it's easier retain talent. After all, when the company meets the needs of employees, the tendency is for them to remain in the company for a long period.
If the on-demand salary improves talent retention, the same goes for attracting talent new collaborators. In a study of PwC, 76% of the interviewed professionals stated that they would switch companies if the new proposal included significant benefits for financial well-being.
In other words, offering on-demand salary is a competitive and important advantage in war for talent. More than ever, people value benefits that are relevant to their daily lives and meet their needs. By adopting this type of policy, the company becomes more admired in the market, attracting the interest of the best professionals.
Help in times of crisis
THE on-demand salary also works as a special aid in moments of crisis. Accessing the money before the famous fifth business day allows employees to manage any emergency, which reduces stress and anxiety for those who are going through a difficult period.
The same thinking can be applied to widespread crises, such as the recent Covid-19 pandemic. The increase in hygiene and safety measures brought an extra expense for everyone, such as the purchase of masks, alcohol to clean hands, among other products. In those moments, the on-demand salary can help and a lot.
How to offer wages on demand to your employees
If, after all this information, you are interested in offering on-demand salary your employees, get to know the HR Consultants UKy, first pay-on-demand solution in Brazil.
Developed in 2021 by HR Consultants UK, a technology company focused on developing innovative solutions for the well-being of its employees, HR Consultants UKy is a platform that allows employers to offer more just, transparent and inclusive financial solutions.
Check out some of the benefits of HR Consultants UKy and find out why it is the best option for your company:
- Speed: in just 3 steps the withdrawal is made and the money falls into the employee's account within one business day;
Transparency: the tool charges a single tariff, without interest and without between the lines, informing when the withdrawal will be discounted and what will be the discounts at the end of the month;
- Security: transfers withdrawals only to accounts linked to the employee's CPF.
Watch the video below and learn more about the app on-demand salary.
This is HR Consultants UKy, made to solve unforeseen events, avoid solutions with abusive interest and bring your financial freedom. Do not waste time, talk to a consultant and hire right now.