Workers today prefer a variety of options when it comes to how, when and how often they receive their pay
An employer’s method and frequency of payment can make or break its relationship with staff, according to an analysis by HCM software specialist ADP.
Workers today prefer a variety of options when it comes to how, when and how often they receive their pay.
In a survey of nearly 7,000 workers and businesses about payment options, more than three in five employees (62%) said having access to their earnings in between pay cycles matters when they consider a job offer.
One in five workers would also be willing to pay extra fees to gain early access to their earnings at least once a month.
READ MORE: How to negotiate your salary
However, 70% of businesses said they would rather focus on the pay itself than the actual payment schemes.
“Payment options impact both the employee and the employer,” said Jeff Phipps, Managing Director at ADP UK. “Therefore, the method and frequency of payment have important ramifications; impacting how employees can manage their finances, how they feel about their pay levels, about their jobs and even about themselves and their performance at work.”
Opening up new payout methods and frequency options, which “reflect the needs of their employees,” would have “clear and quantifiable cost benefits”.
“It also helps to improve employee perceptions, financial wellness and productivity,” Phipps said.
“Payment options, off-cycle payments and financial wellness support can help differentiate a company competing to attract and retain talent. Ultimately when an employer can help employees improve their financial health, everyone benefits.”