In the workforce, speed is an issue close to employees’ hearts. How quickly workers get paid can not only affect their satisfaction with their day-to-day job, but also plays a large role in motivating them to remain in their roles. And employers are learning that the same rule of payment speed applies when it comes to boosting productivity through company wellness programs.
The April Disbursements Tracker™ looks at the latest disbursement solutions that are rapidly shifting traditional relationships between employers and employees. From getting faster access to their earnings to motivating employees to make healthier lifestyle decisions, these solutions are helping employees across the workforce spectrum.
Around the Disbursements World
For gig workers in particular, the speed of a payment can have a significant impact on their livelihoods. The most recent Gig Economy Index™ found that 84 percent of surveyed gig workers said they would do more work if they were paid faster. In recent weeks, several companies have stepped forward to address that need.
One such company is human resources solutions provider ZayZoon. The company recently partnered with real-time payments provider Push Payments on a solution that allows gig workers to get paid instantly for their services. The service is specifically aimed at helping gig workers avoid incurring overdraft bank fees or taking on costly payday loans to help make ends meet.
Other companies are working together to help this population of workers get access to their wages via payroll cards. Payroll card solutions provider Kittrell Paycard recently partnered with FinTech Cardplatforms to integrate its new on-demand pay feature, InstantWage, onto its cards. With the integration in place, cardholders can transfer their earned, but unpaid, wages onto a payroll card ahead of their scheduled payday to get access to those earnings immediately.
Underbanked workers are also getting easier access to their wages through payment cards. Global payment solution provider Hyperwallet and recruiting service tilr recently collaborated on a solution that enables workers without bank accounts to have their earnings sent to prepaid cards. The funds can be spent instantly wherever the cards are accepted.
Encouraging Employee Wellness With the Financial ‘Carrot’
Employers aren’t just aiming to recruit and retain workers with promises of faster payroll solutions. Some companies are also seeking to show their dedication to their employees’ well-being by offering wellness programs. Such programs aim to promote employee health and productivity, while also reducing the company’s healthcare costs.
But a “build it and they will come” mentality doesn’t always work, meaning that simply offering a wellness program does not guarantee that employees will partake. Many programs only attract the participation of employees who already engage in healthier activities and lifestyles. Also, rewards such as gift cards or discounts on healthcare have not proven to be effective in getting workers on board with company wellness programs.
To encourage greater engagement, iRewardHealth CEO Rick McCartney recommends that companies use the “carrot” of financial rewards. In the April feature story, McCartney speaks with PYMNTS about how the company promotes employee participation in company wellness programs by quickly disbursing funds to employee bank accounts as rewards.
About the Tracker
The Disbursements Tracker™, powered by Ingo Money, is your go-to resource for staying up to date on a month-by-month basis on the trends and changes in the digital disbursement space.