There are many different ways to pay your employees, but this blog looks at the growing emergence of instant pay. The most common payment schedules for businesses in hospitality are once a week or monthly.
For casual workers, it can mean an unreliable income meaning waiting till payday can be a struggle. Because of this, instant payment solutions and Earned Wage Access options are receiving more interest from businesses like restaurants which have shift workers.
What is Instant pay?
Instant pay, also known as Earned Wage Access (EWA), enables employees to access their wages on demand, as they earn it. Normally, the employee would have to wait until their usual payday dictated by their employer. By using Earned Wage Access, employees can access their wages as soon as they’ve earned them if they would like to. The innovation of Earned Wage Access has so many benefits, here are five reasons why restaurants should start offering instant pay to their employees…
1. Instant payments increase employee satisfaction
Offering instant pay options can increase employee satisfaction. By using Earned Wage Access, employees are able to access their earnings quickly without having to wait for a weekly or bi-weekly payday This gives employees a sense of satisfaction as they can instantly see what their hard work has gone towards and access earned wages whenever suits them.
2. Instant pay improves financial planning
With instant pay and Earned Wage Access, employees have a better understanding of their income and can plan their finances more effectively. Employees can see how much they earn on a daily basis and decide whether to keep the money where it is or access it straight away. This can help reduce financial stress and improve overall financial wellbeing, which can lead to happier and more productive employees.
3. Instant payments increases efficiency
Instant payment systems are faster and more efficient than a manual payroll process. You can log into your chosen software and process the payment instantly, reducing the time and resources required for payroll management. This is a huge benefit for the employer as it means processing all of the payments for your employees which could take hours to complete depending on how big your team is, can now take minutes or even seconds.
4. Better employee retention when using Instant pay
Offering instant pay options can be a valuable benefit that helps attract and retain employees, especially in a competitive job market. On-demand pay can help companies stand out amongst the thousands of other hospitality jobs that are on offer since the covid crisis and give employers that edge to retain their employees by allowing their employees to access their wages as they earn them.
5. Convenience for employees when using Instant pay
Earned Wage Access options allow employees to access their earnings from anywhere, at any time, using their mobile device or computer. This is a huge attraction for employees, especially during this cost-of-living crisis when people are struggling to make ends meet. Giving employees the option to access their pay instantly will allow them to manage their finances and makes it more convenient to help employees budget.
If you are interested in offering your employees an instant payment solutions or Earned Wage Access, Income Group can help.
Request a free demo of our payroll solution IGsend and we will explain how it can help improve your business for the employer and employees.