On-demand pay enables employees to access their pay whenever they need it instead of waiting for the standard payday. On-demand pay is often implemented through a third-party app and coordinated by a payroll provider to give employees early access to wages earned.
The statistics is that 40% of adults in the US would not be able to come up with $400 if they encountered an unexpected expense. A co-branded survey from the Mercator Advisory Group and DailyPay, reveals that by innovating the antiquated pay cycle model, workers can save money and become less stressed and more productive at work. HR executives can attach on-demand pay benefits and initiatives to a broader financial well-being strategy that involves combining pay on demand with savings programs that help employees make better decisions.
On demand pay has been a growing HR tech tool, and employee benefit, for the last several years. But COVID-19 is rapidly accelerating its growth due to the pandemic’s changing economic situations.
Even before the pandemic, 78% of workers were living paycheck to paycheck, according to a Harris poll. And 44% of those workers had less than $500 dollars saved for unexpected expenses. Now, financial fragilities are even worse due to the pandemic.