Employee Financial Wellbeing – Investing in an employee financial wellbeing strategy will benefit both employees and organisations. If employees feel more financial stability, this can improve the ROI on staffing costs by reducing their financial stress, increasing productivity, and reducing absenteeism. It can also act as a powerful tool for recruiting and retaining staff, as employees are likely to place a high value on opportunities to improve their financial stability, health, and overall wellness. Improving employee financial wellbeing should be a top priority for organisations as they navigate through the current crisis to build a stronger, more resilient workforce for the future.
Cloud-based automated payroll systems
If we assess the efficiencies of payroll processing across different businesses and roles, we need to establish what is important for payroll back-office staff, and what their key pain points are. Despite the rise in digital processes and the use of smartphones, there remains some level of resistance from the payroll industry, who are reluctant to adopt online employee portals.
So, what does the future hold for payroll within this brave new world, especially given that working from home appears to be the new normal?
By streamlining payroll processes and adopting intuitive cloud-based management technology in your company can be a two-fold initiative; meaning both the employer and the worker get to realise the benefits. With many systems already under pressure, payroll is a drain on administration and often takes several days to complete. Providing your employees with a portal, wallet or app that easily shows them things like wage slips, money transfers, PAYE, requests for drawdowns etc. means they are in control and responsible for their financial well-being and financial visibility. As a business, you will benefit the rewards that automation brings and will quickly realise the value that cloud-based systems can bring to your company.
Whilst there is a wealth of research regarding employee compensation and its impact on recruiting, retention and satisfaction, how employees are paid has been an overlooked and undervalued dimension of pay. Employers have their work cut out if they are going to firstly attract and then retain key operational staff.
As the world of work continues to change, so does the desire for greater speed, security, flexibility and financial security, driving people – regardless of the industry they work in, to question about how they work, why they work and how they are paid.
According to ADP Research** (The future of pay exploring the evolution of worker pay and talent management). Demographic and generational trends are also expected to drive a shift in worker pay preferences. Millennials, for example, are accustomed to the immediacy technology provides and the flexibility of digital payment options. By 2025, this age cohort will make up 75% of the global workforce. As Generation Z (those born after 1996) enters the workforce, employers will witness the final cross over to a fully digital world – one whose employees were brought up alongside smartphones and social media.
“When examining the evolution of work and of the workforce, while there are universal values and priorities shared among employers and employees worldwide, in the quest to fulfil those needs no stone is being left unturned, no assumption is left unchallenged. Everything is up for re-examination.
Employers have many compelling reasons to explore alternative payment options, with cost savings being one of many drivers.
Payment options, off-cycle payments and financial wellness support can help differentiate a company competing to attract and retain talent. In the end, when an employer can help employees improve their financial health, everyone benefits. The same holds true for the evolution of pay. For employers seeking to embrace change, who want to elevate their workforce and adapt to the new world of work, considering how employees are paid is just as important a consideration as to how much they are paid.”**
What support is available for employees through Elva?
Elva offers a range of financial wellbeing products and services to suit your needs, no matter the situation. Salary advances – sometimes known as payroll borrowing – are a relatively new form of borrowing where wage advance companies work with your employer to let you access part of your salary as you earn it, rather than having to wait until your payday.
Your employer needs to be signed up with a company which offers this for you to be able to access it, but once it is, you can access your salary in advance whether you’re paid weekly, fortnightly, four-weekly or monthly. It’s billed as an alternative to payday loans, though the difference is that it’s your own money you’re ‘borrowing’.
As these are salary advances rather than loans, it’s not counted as credit, so you’re not credit checked, and you don’t pay interest. Instead, a fee is paid each time you access your salary early.
There’s no chance for you not to repay, as the salary advance company sits on the payroll between you and your employer. So when you get paid, the payroll lender gets its money back – and the amount in your pay packet will be lower, as you took some early.
Request an employee financial wellbeing survey for your organisation