Our Workplace Wellbeing Study 2020 focuses on the challenges and opportunities of payroll. The survey of 2,005 UK earners paints a picture of a challenging earning and spending process as the public try to make sense of their personal finances in a substantially more volatile economy than last year.
We know payroll can serve a crucial role improving the liquidity of workers facing pressures from a 2020 where everything is on demand and where there has been extra pressure thrust on people from Coronavirus. 36 per cent of 25-34 year-olds believe that buy now pay later schemes encourage them to spend money they don’t have, and 65 per cent of people are not convinced they are a good idea. These schemes are used just as much as personal loans – by 16 per cent of 18-24 year-olds and 13 per cent of 25-34 year-olds.
Payroll technologies are evolving, and with flexible pay the business can minimise the need for cash advances, protect the business payroll, and still offer enhanced liquidity to workers – helping them cover life’s unexpected hurdles, or enabling employees to rescue themselves from debt traps.
Earnings on demand technologies for the modern payroll system
Hastee’s platform for earnings on demand allows users to access a portion of their own earnings, the pay that they have already accrued that pay period, in advance of the pay cycle. It makes payroll more agile and allows workers to save considerable sums by leaving exorbitant payday loans or daily overdraft fees.
Hastee data shows that users check their growing funds far more often than they draw down on them. They like the security of seeing their wages grow, and they spend it around their commuting times on categories like travel and food. Users are responsible and careful spenders, looking for flexibility in how they understand, access, and use their earnings to better manage their working and personal lives.
You can read more about Earnings on demand, in a round table by CIPP here.
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