The word on everyone’s minds: wellbeing. 

Employers are doing everything they can to support all pillars of wellbeing: physical, mental, social, environmental, and financial. When it comes to financial wellbeing, it can be difficult to know just how involved an employer should get in their employees’ lives. 

Financial wellbeing brings up the acronym on everyone’s minds: Flexible pay.

First and Foremost, What Is Flexible pay?

It goes by a few other nicknames:  Earned Wage Access, On-Demand Pay, or Instant Pay. No matter the name, Flexible Pay is the concept that as soon as one works a shift, they should have access to the funds accrued during those hours. 

In the olden days, you would leave your workplace and get handed a bag with money for that day’s shift. This was great for the workers but a burden on employers. Luckily, we have recruited skillful payroll teams and developed intricate systems that process payments and allow funds to go directly into bank accounts. Flexible Pay combines the convenience of having accessibility to your funds immediately and the technology of modern payroll and banking. 

Flexible Pay is for both hourly and salaried employees. It is a revolutionary financial wellbeing benefit that gives people control over their finances. Bills come every day, why doesn’t payday? 

Is Flexible Pay a Loan?

No. Flexible Pay only allows access to money that your people have already earned. It actually promotes the death of loans, or at least predatory ones. Why use someone else’s money when you can use your own?

How Will My Employees Use Their Money If They Get Access To It Early?

28% of Americans run out of money before payday. Flexible Pay was designed to combat this, giving people access to their earned wages in case of an unforeseen circumstance: an AC unit that gives up in the middle of July, a nail in a tire when driving the kids to school, an urgent care visit for the migraine that won’t go away. 

When considering flexible pay, many employers fear that giving their employees access to their wages early will encourage them to misuse the funds. UC Berkeley did a study on just this, investigating if employers should regulate access to flexible pay. It was concluded that most employees use Flexible Pay for beneficial reasons and that removing the ability would likely harm them. 

You have hired smart, talented people. Trust them, and your recruiting team who found them, to use the tools you give them wisely. 

How Will This Impact Payday And My Payroll Team?

The payroll team plays a pivotal part in a company’s ecosystem. No benefit should seek to disrupt this. With an industry leading Flexible Pay provider, there will be absolutely no change to the way your payroll runs. Wagestream offers Flexible Pay, and the rest of its platform, without touching your payroll process. If a benefit would disrupt this paramount part of your business, it is best to look at another provider.

Will This Impact My Business?

Absolutely. Financial wellbeing initiatives, including Flexible Pay, have been proven to quicken hiring processes by 27% and reduce turnover by 16% based on an Indeed study. Besides recruitment and retention, this also cultivates a community of promoting wellness. 

Is Flexible Pay Predatory?

No, the service itself is not inherently predatory. Flexible Pay actively seeks to support your people in moments where they need it most. 

However, some companies may encourage improper usage of Flexible Pay order to drive a profit. This is why when picking your provider, you ought to be selective. It is best to look at companies that promote financial wellbeing as a whole and offer free versions to use the tool. Wagestream offers all the capabilities of its platform for free and is Certified B Corporation. 

Is Flexible Pay Enough?

Anything you do to promote wellbeing at your company is a stride towards success. Flexible Pay is just one step in the walk you could take. When possible, look at Flexible Pay providers who offer a holistic platform rather than just one service. For example, Wagestream is a financial wellbeing solution that gives your people Flexible Pay, FDIC insured savings accounts, interactive budgeting calendars, financial literacy content, and more. Flexible Pay is one tool for financial wellness; when possible, give your people the knowledge and literacy they need to use the tool. 

So What You're Saying Is, I Should Give My Employees Access To Flexible Pay?

Yes. This is a life changing wellness tool that you can give to someone. Even better, there are some providers that will implement this at no cost. Being a social impact organization, Wagestream is one of those. 

If you could change someone’s life at no cost to you, would you? 

If you are considering implementing Flexible Pay and want to chat through it, we would love to set up some time to show you how it works and answer your questions.