As the business landscape continues to change rapidly, employers must stay ahead of the curve to attract and retain top talent. One essential aspect of this is having a comprehensive employee benefits strategy that meets the needs and expectations of your workforce. In 2022, popular employee benefits included health insurance, retirement plans, paid time off, flexible work hours, and mental health benefits.
Looking at how the trend is developing early into 2023, it's obvious that the employees' benefits market landscape is evolving and thus, there is a need for a new approach. One of the most significant changes is the rise of on-demand pay, a benefit that allows employees to access their earned wages before payday. Although on-demand pay is a relatively novel concept compared to conventional employee benefits, it has already demonstrated itself as a critical employee benefit that can enhance engagement, retention, and financial well-being.
In this blog post, we'll explore the changing employee benefits landscape in 2023, highlight the benefits of on-demand pay, and explain why it should be a crucial part of your employee benefits strategy. We'll also provide guidance on how to implement on-demand pay in your workplace effectively.
Employee benefits in 2022
In 2022, several employee benefits remained popular and essential for attracting and retaining top talent. Let's take a closer look at some of the most common employee benefits:
A. Health Insurance: Employer-sponsored health insurance continued to be one of the most important employee benefits. It provides employees with access to quality healthcare services and financial protection against high medical expenses.
B. Retirement plans: 401(k) plans and other retirement savings programs help employees prepare for their future financial needs. Many employers offer matching contributions or other incentives to encourage employees to participate.
C. Paid Time Off (PTO): Employees value time off to rest and recharge. In 2022, many companies offered generous PTO policies, including paid vacation, sick leave, and personal days.
D. Flexible work hours: Many employees value flexibility in their work schedules, and offering flexible work hours can improve work-life balance and job satisfaction. This can include options such as remote work, flexible start and end times, and compressed workweeks.
E. Mental health benefits: The COVID-19 pandemic brought mental health to the forefront, and many employers started offering mental health benefits to support their employees' well-being. These benefits may include access to counseling, stress management programs, and other resources.
The changing employee benefits landscape in 2023
The employee benefits landscape is evolving in 2023, driven by changing employee expectations and the need for businesses to adapt to stay competitive. One of the most significant changes is the rise of on-demand pay, a benefit that allows employees to access their earned wages before payday. Let's take a closer look at this trend and the benefits it offers:
A. The rise of on-demand pay: On-demand pay has gained popularity in recent years, with more and more companies offering this benefit to their employees. This benefit allows employees to access a portion of their earned wages before payday, providing them with greater financial flexibility and control.
B. The benefits of on-demand pay for employees: On-demand pay can be a powerful tool for reducing financial stress and improving financial wellness for employees. It allows them to access their earned wages when they need them most, whether to cover unexpected expenses or to help manage their bills and other financial obligations.
C. The benefits of on-demand pay for employers: On-demand pay can benefit employers by improving employee engagement, increasing retention, and saving costs.
As the benefits of on-demand pay become more apparent, it's essential for employers to consider incorporating this benefit into their employee benefits strategy. In the next section, we'll explore why on-demand pay is so important for your employee benefits strategy in 2023.
The importance of on-demand pay in your employee benefits strategy
On-demand pay is an essential benefit that employers should consider including in their employee benefits strategy for 2023. Here are some of the reasons why:
A. Improved financial wellness: On-demand pay can help employees better manage their finances and reduce financial stress. This, in turn, can lead to improved overall well-being and productivity. PwC's 2020 employee wellness survey reveals that 47% of employees concur that financial stress is a significant concern in their lives. (PwC, 2020)
B. Attraction and retention of top talent: Offering on-demand pay can make your company more attractive to job seekers and help retain top talent. According to research conducted by Visa, if an employer provided on-demand pay, 89% of workers would remain at their current company for an extended period. Moreover, 79% would switch to an employer that provides this benefit. (Visa, 2019)
C. Reduced turnover: High turnover rates can be costly and disruptive for businesses. By offering on-demand pay, you can increase employee loyalty and reduce turnover rates. The cost of job stress to American companies is estimated to be over $300 billion annually, which includes health expenses, absenteeism, and substandard performance. Furthermore, 40% of job turnover is attributed to stress. (Ferguson, 2021)
D. Competitive advantage: As on-demand pay becomes more popular, it will become an expected benefit among job seekers. Offering this benefit can give your company a competitive advantage over other employers who don't offer it.
E. Flexibility and convenience: On-demand pay is a flexible and convenient benefit that allows employees to access their earned wages on their schedule. This can be particularly valuable for employees who may be experiencing unexpected expenses or financial emergencies.
F. Increased employee engagement: Employees who feel valued and appreciated by their employer are more likely to be engaged and productive. Offering on-demand pay can show employees that you care about their financial well-being and value their contributions.
Incorporating on-demand pay into your employee benefits strategy can have significant benefits for both employees and employers. In the next section, we'll explore some tips for effectively implementing on-demand pay in your workplace.
Implementing on-demand pay in your employee benefits strategy
If you're considering adding on-demand pay to your employee benefits strategy in 2023, here are some tips to help ensure a successful implementation:
A. Choose the right on-demand pay provider: It's essential to choose a reputable and reliable on-demand pay provider. Look for a provider that has experience working with businesses in your industry and has a strong track record of delivering excellent service.
B. Communicate the benefit to your employees: Be sure to communicate the availability of on-demand pay to your employees and explain how it works. This can help them better understand the benefit and take advantage of it when needed.
C. Set clear guidelines and policies: Establish clear guidelines and policies around on-demand pay, such as the maximum amount that employees can access and any fees associated with the service. This can help prevent misuse and ensure a smooth implementation.
D. Monitor usage and feedback: Keep track of employee usage of on-demand pay and collect feedback from employees to gauge its effectiveness. This can help you make any necessary adjustments to the benefit over time.
E. Consider integrating with payroll software: Integrating on-demand pay with your payroll software can help streamline the process and reduce administrative burdens. OrbisPay is integrated with PayChex, ADP, CareSmartz360, and many more to provide seamless on-demand pay service.
F. Ensure compliance with laws and regulations: It's essential to ensure compliance with applicable laws and regulations, such as wage and hour laws and banking regulations. Consult with legal and financial experts to ensure that you're implementing on-demand pay in a compliant and ethical manner.
By following these tips, you can effectively implement on-demand pay into your employee benefits strategy and reap the benefits for both your employees and your business.
Revamp your workplace benefits in 2023 with on-demand pay
In conclusion, as we move into 2023, it's essential for businesses to revamp their employee benefits strategy to meet the changing needs and expectations of their workforce. On-demand pay is an increasingly popular benefit that can have significant benefits for both employees and employers, including improved financial wellness, increased employee engagement, and reduced turnover rates.
To effectively implement on-demand pay into your employee benefits strategy, it's essential to choose the right provider, communicate the benefit to your employees, set clear guidelines and policies, monitor usage and feedback, consider integration with payroll software, and ensure compliance with laws and regulations.
By incorporating on-demand pay into your employee benefits strategy, you can help attract and retain top talent, reduce financial stress among your employees, and gain a competitive advantage in the marketplace. Don't miss out on this essential benefit - explore OrbisPay’s on-demand pay service today and take the first step toward successful implementation in 2023.
Ferguson, J. (2021). Workplace Stress Strains Organizations' Bottom Lines. Corporate Wellness Magazine. Retrieved April 6, 2023, from https://www.corporatewellnessmagazine.com/article/workplace-stress-strains-organizations-bottom-lines
PwC. (2020). 2020 Employee Financial Wellness Survey. PwC. Retrieved April 6, 2023, from https://www.pwc.com/us/en/services/consulting/business-transformation/library/financial-well-being-retirement-survey.html
Visa. (2019). Earned Wage Access (EWA) provides early access to already earned wages, helping both workers and emloyees. Visa. Retrieved April 4, 2023, from https://usa.visa.com/dam/VCOM/blogs/visa-earned-wage-access-infographic-text.pdf