Nearly two-thirds (62%) of global employee respondents think that off-cycle pay options, such as the ability to choose their pay frequency, would make a difference when considering a job offer, according to research by ADP.
The future of pay: Exploring the evolution of worker pay and talent management, which surveyed 7,000 employers and employees at organisations with workforces of 50 or more, across 13 countries, also found that almost all (98%) global employers think that employee financial wellbeing impacts on their business.
Employers have found that employee financial wellbeing affects productivity (67%), engagement (62%), turnover (53%), the organisation’s bottom line (38%) and absenteeism (31%).
More than four-fifths (86%) of employers and 78% of employees globally stated that an organisation should take an interest in the financial wellbeing of its staff, with 84% of employers agreeing that offering financial wellness tools would help in attracting top talent.
A further majority (89%) of employer respondents stated that financial wellness is important to overall wellbeing; 85% of employees agreed, while 79% said that they want to work for an employer that cares about their financial wellbeing.
Jeff Phipps (pictured), managing director at ADP UK, said: “Payment options, off-cycle payments and financial wellness support can help differentiate [an organisation] competing to attract and retain talent. Ultimately, when an employer can help employees improve their financial health, everyone benefits.”
Almosth two-fifths (36%) of employee respondents agreed that the ability to select pay frequency would make a difference in their decision to accept a job offer, while 29% felt that being able to have early access to their earned wages would be a factor.
More than a quarter (26%) also said that being able to receive same-day pay would influence whether they accept a job offer, while 22% of millennial respondents stated that access to budgeting and savings tools would make a difference.
In the UK, 45% of employees would pay for early access to earned money at least once a year, while 19% would do this once a month or more.
For employers, 78% believe that organisations will need to customise pay options in order to remain competitive in the war for talent; a further 70% have seen a need for different payment options and 63% feel it is important to customise pay methods for different types of workers.
As a result, 28% of UK employers stated that they are extremely or very likely to offer early access to pay; these employers think that 36% of their workforce would utilise early access to pay at least once a year.
Two-fifths (42%) of employers already offer non-traditional payments, and 44% of employees are open to utilising these.
Phipps added: “For employers, providing payment options and frequency of pay that reflect the needs of their employees has clear and quantifiable cost benefits. It also helps to improve employee perceptions, financial wellness and productivity.
“Consumers can transfer money and manage finances in real-time, but employer pay cycles, by comparison, [move] at a snail’s pace. While there is a wealth of research regarding employee compensation and its impact on recruiting, retention and satisfaction, how employees are paid has been overlooked and undervalued.”