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Many employers in Cook County – especially those in the service industry with hourly workers – are accepting “earned wages” (also known as “day wages” or “on-demand wages”) as their employees struggle to keep up. their expenses. Many workers in this situation often turn to payday loan services that charge interest rates and other fees.
Associated Press, 2018
genetic markers
Whenever I ask my clients if they have considered paying their employees within 24 hours of the job being completed, I always get a skeptical look.
But that attitude is changing.
That’s why many Cook County employers — especially those in the service industry with hourly workers — are embracing “wage capture” (also known as “day pay” or “on-demand pay”) because their employees are struggling Keep up with their work. Fees and their businesses grapple with the challenges of finding and retaining these workers in this tight labor market.
Getting paid means paying employees on or near the day they complete their work, rather than waiting for the typical one- to two-week pay period to end. Some companies offer this service and under the scheme, these employees can be paid on the same day without incurring any additional charges. Best of all, offering this benefit doesn’t necessarily impact the company’s cash flow.
There are many benefits to your employees, too, especially since some studies have found that as many as 62% of American workers live paycheck to paycheck. Many workers in this situation often turn to payday loan services that charge interest rates and other fees. Paying immediately can help them avoid this cost.
Stacy Greiner, chief operating officer of dailypay, a payroll access provider, said that through their services, employers can provide employees with greater financial health support, making employees happier and more productive.
“Our research found that employees at companies that offer payroll increased their work hours by an average of 27%, or 39 additional days,” she said. “We also found that 67% of employees who accessed payroll services said it helped them reduce financial stress.”
Some studies have found that as many as 62% of American workers live paycheck to paycheck.
DailyPay, like its competitors, offers a variety of same-day payment plans that require a fee. But one of its more popular options is to ensure employees are paid the day after work. Funds can be accessed via debit card, an option that is free for either the employer or the worker (the company starts work on the first day of work). Earn revenue from merchant fees generated) transactions). Another benefit: Workers don’t have to use a credit card to pay for expenses, so they also save on interest costs.
A good payroll access service provider handles the complex calculations of determining taxes and other payroll withdrawals every day, integrates directly with the most popular payroll systems, and comes with a mobile app through which workers can request payments rather than just view them salary status.
Fast-food chain Sbarro, which operates eight locations in the Cook County area, has been offering payroll benefits to employees for two years.
“More than half of our 2,000-plus employees use it,” said Rohan Shearer, the company’s chief administrative officer. “Regular users like the flexibility of paying bills in advance or using funds for daily needs so they don’t have to use a credit card and rack up interest.”
Scott Evans, director of human resources for fast-food chain Buona, which is headquartered in Cook County and has more than 1,500 employees, adopted a payroll capture solution in 2019 to help recruit hourly workers, especially part-time workers.
“We’re in an environment where it’s difficult to provide part-time employees with the substantial health and other benefits that we provide to full-time employees,” he said. “But these workers are important to us and we have added this benefit to our job ads. It has had a big impact on our recruitment.”
Wage capture platforms like DailyPay are most popular in industries with large numbers of hourly workers, such as retail and restaurants, but the company says it serves many other industries, from manufacturing to distribution, where salaried workers are also involved. rare. Both Evans and Shearer said the implementation process was “simple” and “seamless.”
While Evans was concerned about whether offering workers, especially younger workers with less financial management experience, a daily wage would create a potential incentive for too reckless or irresponsible spending, Shearer had a different perspective.
“I’ve found that, in some ways, it actually helps employees be more responsible with their money,” Shearer said. “They are using money that actually exists, rather than mortgaging today what they hope will be the future.”
• genetic markers is a CPA, owns and operates The Marks Group PC, and is an expert in customer relationship management technology.
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