Employee Benefits poll: Almost a fifth (18%) of organisations offer a salary advance scheme allowing staff to access their wages before payday, according to an online survey among Employee Benefits readers.
Conversely, 54% of respondents said that they do not offer a scheme of this kind. However, 31% revealed that while they do not have this option for their workforce, they are planning on introducing it at some point in the future.
Last month, contract caterer Compass Group launched a salary advance scheme for its 50,000 British and Irish staff to support them during the cost-of-living crisis. The advance option gives monthly salaried employees the ability to withdraw up to 50% of their earned pay before payday, and they can make up to three withdrawals per pay cycle.
Robin Mills, managing director, UK and Ireland at Compass Group, said: “We are proud of our caring culture and are committed to supporting our people and the communities we serve during this difficult time. Working with our employees, we have put together a comprehensive support package to help our thousands of frontline workers over the coming months.”
Supermarket chain Tesco also introduced a benefit allowing its 280,000 employees to access up to 25% of their contractual pay early. The scheme, provided by Salary Finance, costs a single set fee of £1.49 per advance, and aims to help staff avoid payday loans or debt with high interest payments.
James Goodman, UK people director at Tesco, said: “We know that colleagues can face unexpected bills, which can leave them short. To give them a helping hand with their financial wellbeing, we have launched Pay Advance to give them a simple and low-cost way to access some of the money that they have already earned. We hope this helps to support colleagues, particularly in the run up to Christmas.”
Take part in our next poll: Has your organisation given staff a Christmas party or bonus this year?