Cos Recruit, Retain Staff With Instant Payments
Companies now recognize that they can unlock numerous benefits by modernizing and digitizing how they disburse funds.
For one thing, faster and more dependable payments can increase employee loyalty, and instant payments can even serve as a recruiting tool in a competitive talent acquisition environment, according to the “Expanding Payments Choice Playbook,” a PYMNTS and Onbe collaboration.
Get the report: Expanding Payments Choice Playbook
As the world continues to go digital, consumers increasingly expect faster transactions in all facets of their lives. As a result, they are seeking digital payouts in their professional lives rather than waiting until payday for their wages. Gig workers are especially interested in receiving their wages instantaneously.
Winning the Competition for Talent
“Not only is offering digital payment options non-negotiable for companies, but consumers really value choice when it comes to payments and disbursements,” Onbe CEO Bala Janakiraman wrote in a PYMNTS eBook.
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When it comes to employee payments, workers ages 18 to 44 do not just want their paychecks fast; they want them immediately. Eighty-three percent said they should have access to their earned wages at the end of each workday or shift rather than waiting for payday.
On-demand pay could improve loyalty for 78%, and 79% said they would feel more valued as an employee if they were paid that way. In terms of talent competition, 81% would be more likely to choose an employer based on the availability of on-demand pay provided at no cost to the employee.
Upgrading to the cloud could help streamline disbursements for aging payroll systems. Companies have been slow to implement cloud-based payroll systems, but use of these systems grew to 61% in 2020, rising from 34% in 2019, and 40% of businesses plan to further modernize their systems by 2023.
Companies must pay wages accurately and on time, as this is crucial to employee retention and motivation. These businesses must also be sure to meet all relevant regulations when doing so.
Digital payroll solutions can eliminate human errors that lead to mistakes that harm employee satisfaction and even result in fines. Regulatory risk is a significant motivator for companies looking to move to cloud-based payroll solutions. Among the drivers for doing so cited by these companies are regulatory risk, cost controls and a shortage of payroll talent.
Focusing on Initiatives to Engage and Support Employees
Various additional HR processes, such as employee time tracking and leave administration, are already cloud-based, providing another reason for companies to take their payroll to the cloud.
Many of these processes are handled via self-service mobile apps, which can be convenient for today’s increasingly mobile workforce. Legacy payroll solutions – many of which require technical support and are nearing the end of their viability – are often impossible to access remotely.
Faster, modernized payment practices can free up HR and finance teams to focus on other priorities while also helping to ensure employees and customers are satisfied. HR departments can spend more time focused on initiatives to engage and support employees, finance professionals can spend their time identifying potential ways to improve their companies’ finances rather than disbursing payments, and payees at all levels can receive money in a manner that best suits them and without delays.
NEW PYMNTS DATA: THE TRUTH ABOUT BNPL AND STORE CARDS – APRIL 2022
About: Shoppers who have store cards use them for 87% of all eligible purchases – but this doesn’t mean retailers should boot buy now, pay later (BNPL) options from checkout. The Truth About BNPL And Store Cards, a PYMNTS and PayPal collaboration, surveys 2,161 consumers to find out why providing both BNPL and store cards are key to helping merchants maximize conversion.