Increasing the frequency of payroll cycles certainly improves employee cash flow (and links to overall job satisfaction!). However, the payroll processing expenses can make this strategy cost prohibitive. Therefore, the majority of companies opt for a biweekly payroll cycle which can be a challenge to employees’ personal budgets. The timeline for personal bills does not always match these payroll cycles resulting in cash flow issues and requests for cash advances. If this sounds familiar, Immediate can help! Here are just a few ways your team could benefit from Immediate:
1. Bills can be paid on time
One of the biggest advantages of utilizing earned wage access like Immediate is that it can help employees access cash when they have bills to pay. When employees get paid every two weeks, payment of bills can be delayed resulting in burdensome fees. But when using Immediate, employees can request cash payments from their earned income as needed.
2. Avoid short-term debt
Another benefit of Immediate is that it can help employees avoid the trap of short-term debt. When employees are paid every two weeks, household bills/obligations can be met through credit cards or lines of credit that carry higher interest rates. Immediate helps employees avoid this dangerous debt cycle by allowing the employee access to their pay when bills arise. Avoiding the pitfalls of short-term debt is key to financial health!
3. Decrease stress
This just in… life is expensive! 9 in 10 employees say financial stress impacts their performance at work. The mental toll of waiting to be paid funds that they have already earned is a heavy burden to carry. Employees, bills, and everyday expenses will never wait for your pay cycle. Allowing employees earned wage access immediately assists in reducing that stress while solving the omnipresent cash advance dilemma for the employer.
Granting financial flexibility to your employees is one of the greatest benefits an employer can offer its employees. No longer bound by dated, bi-weekly pay cycles or burdened with administrative costs associated with pay advances, you can allow your employees to manage their own cash flow.
Join the many other companies who recognize the win-win of Immediate by booking a 15-minute discovery call today!
Written by: Jami Griffin, Director of Customer Success