There are many factors for an employer to consider when running a business.
One of the main things an employer must think about is the best way to pay their employees. In this blog, we will discuss seven reasons why small businesses should be offering a salary advance scheme as an alternative to the typical monthly/weekly payment methods.
1. Attract and retain employees:
As a small business, offering a salary advance scheme can be a great way to attract and retain employees.
Offering employees the opportunity to withdraw their wages as they earn them, gives employers the chance to provide employees with better benefits. This could help a small business stand out from competitors when recruiting new talent.
2. Improve employee wellbeing:
With the cost-of-living crisis still influencing people’s everyday lives, offering employees the chance to withdraw their wages as they earn them could improve their wellbeing.
Employees could finish their shift and withdraw the money the very same day. Employees wouldn’t have concerns about stretching their money to last until the end of every month or worry about affording the essentials. They could instead access the money they have earned at the end of each shift.
3. Reduce financial stress:
Unexpected expenses can create financial stress. The worry of affording everyday essentials, the food shop and bills are starting to cause a lot of strain during the cost-of-living crisis.
A salary advance scheme could help employees reduce that stress. When unexpected expenses arise, the employee could access the wages they had earned that day and use them straight away rather than worrying about making ends meet and having to wait until the next payday or take out expensive credit/loans.
4. Increase productivity:
Wellbeing and financial stress can be a major distraction for employees leading productivity to dwindle whilst their minds are preoccupied with the financial stress of how they can make ends meet until the end of the month.
By having access to their wages on demand, employees could remove these distractions which would be a massive improvement for the employer.
5. Improve cash flow:
A salary advance scheme could help to improve cash flow for employees. An EWA scheme allows employees to access their earned wages before payday, by doing this, employees can better manage unexpected expenses and improve their cash flow through improved money management with better visibility of their everyday wages.
6. Streamline payroll:
A salary advance scheme can streamline the payroll process for employers. Since employees can access their earned wages before payday, employers will have fewer payroll enquiries and disputes to deal with.
This could save time and resources for the business and give the payroll team the ability to focus on other things rather than concentrating on reoccurring payroll errors.
7. Promote financial responsibility:
A salary advance scheme could help encourage employees to be more financially responsible.
By providing your employees with access to their earned wages before payday, employees can better manage their finances. Employees would be able to see their wages every day and see exactly how much they have earned and have available to spend for that day. This could help employees to avoid loans or credit card debt.
If this sounds like something you would be interested in offering, register your interest in Income Group’s Earned Wage Access system to help improve your business.