California people ops manager suggests HR leaders consider on-demand pay to recruit and retain talent
As companies scramble to recruit and retain talent during the Great Resignation, HR leaders have been tasked with developing benefits and perks that will entice workers.
Well, a whopping 83% of surveyed North Americans wish their employer offered non-health benefits, such as on-demand pay and flexible work arrangements, according to a new study from Ceridian, a global leader in human capital management (HCM) technology. Furthermore, if those amenities were offered, 82% would feel more loyal to their employers.
“Gone are the days when basic health insurance, paid time off and retirement plans were good enough to attract people to the workforce,” said Seth Ross, general manager of Dayforce Wallet and consumer services at Ceridian. “As we enter the third year of the pandemic, it’s clear that many North Americans, especially the younger population, want employers to support their financial well-being. The market is demanding that employers step up and begin offering modern benefits like on-demand pay to meet the needs of their workforce.”
Read more: How to budget for more employee benefit offerings
Increased employee expectations are particularly evident among millennials and Generation Z. Nearly 90% of these workers who experienced trouble covering expenses between pay periods over the past six months say it had a negative impact on work. Moreover, 82% in this age group expect a current or future employer to play a role in supporting their financial security and well-being.
The study found that over half (54%) of all respondents had trouble covering expenses between pay periods over the past six months, with recent inflation and high expenses as some of the biggest contributors. In response, many employers are implementing on-demand pay to help alleviate financial stress.
“At Good Eggs, we recognize the importance of supporting our employees’ physical and financial well-being,” says Cynthia Sanchez, people operations manager at Good Eggs, an organic grocery delivery service in California.
“Throughout the pandemic, our goal has been to ensure that our employees feel financially secure, and Dayforce Wallet has allowed us to do just that. Through our partnership with Ceridian, we can offer on-demand pay and early direct deposit for our people, at no additional cost. Most importantly, the responses have been overwhelmingly positive. Since implementation, Good Eggs has had over $1 million paid out through on-demand pay requests, and we’re continuing to see growth in new enrollments and usage.”
The study reveals other significant gaps between what millennial and Generation Z employees expect and what employers are currently providing. More than 80% would be less likely to look for a new job if their current employer began offering more financial wellness tools, including on-demand pay. However, only 17% currently have access to on-demand pay through their employer.
Meanwhile, 86% have access to at least one type of non-health-related benefit, but almost a third (32%) say their benefits package doesn’t meet their needs. Nearly 80% say access to on-demand pay would impact their decision to choose an employer. Finally, 63% of workers who don’t currently have access to on-demand pay indicated that they would feel less stressed financially if given access to it.
The survey was conducted online by The Harris Poll on behalf of Ceridian from April 19-21, 2022, among 3,033 U.S. and Canadian adults ages 18 and older.
