Business
Empower Your Workforce With Financial Wellness This Labor Day
Global Banking and Finance Review
Company
By Ryan Mang, Chief Commercial Officer, DailyPay
They put a man on the moon. They built the Brooklyn Bridge largely by hand, as well as some of the most iconic skyscrapers in the world. They put computers and smart phones in many homes and pockets. They cured diseases. There is seemingly nothing the American worker cannot achieve.
There are approximately 163.37 million workers in the United States, and the majority are facing significant financial challenges related to continued high inflation, impacting the price of everything from eggs to rent. As a result, nearly six in 10 workers are living paycheck-to-paycheck, meaning they earn just enough to pay for the essentials, while one unexpected bill could prove disastrous. In addition, about three in four American workers carry some form of debt, including mortgages, credit cards, student loans, or medical bills. So not surprisingly, 39% of Americans worry they can’t pay their bills.
This all adds up to an endless cycle of stress to make ends meet. The research shows that about 72% of workers said they are at least somewhat stressed about their household finances. SoFi’s 2024 survey, The Future of Workplace Financial Well-Being reveals that employees are spending nearly 14 hours a week dealing with financial issues–with almost half taking place on the job. In fact, one in three employees say financial issues impact their ability to focus at work. This is a lose-lose situation for both the company and the employee.
We simply cannot let financial stress deplete the productivity and vitality of the American worker, who is truly the backbone of our country. They deserve better and they need their employer’s help.
So what can be done to help workers manage their finances and be the best employees they can possibly be?
This Labor Day, employers nationwide can make a real difference in the lives of their employees by offering the financial wellness benefit of On-Demand Pay, where employees are able to access their wages already earned, before payday. This employer-sponsored benefit offers employees more choice when it comes to their earned pay so they can pay bills on time, avoiding late fees and interest. So when employees feel in control over their financial situation, they are less stressed and more focused at work- and become better employees.
And that’s a big win for employers.
By improving retention and productivity, On-Demand Pay is able to generate tangible returns for employers by reducing absenteeism and turnover costs, estimated to be over a trillion dollars every year.
But best of all, by offering the benefit, employers are sending a message to their team members that they are not alone in navigating today’s uncertain economic waters.
There are far too few examples of tech innovations specifically designed to help workers on their path to financial security. While retirement programs such as 401(k)s are great for long term savings initiatives, they don't address the day-to-day challenges workers face. On-Demand Pay was created with the worker’s day-to-day needs in mind.
The ability to understand the exact amount of money you just earned on a shift, and how much is available to you right now can be incredibly empowering. Through this advancement in technology, employees no longer have to guess how they’re going to make it to their next payday. They can access their actual earned income with a press of a button instantaneously. After all, there is almost nothing we need to wait for anymore. Can you imagine telling your Gen Z employee that if they want a ride they either need to hail a cab or research the nearest car service? So why would you tell them they have to wait for the money that they have rightfully earned?
Labor Day’s origins can be traced back to the late 19th century, during the Industrial Revolution, when labor activists pushed for a holiday to recognize the achievements of workers. Today we have a chance to recognize their achievements in other ways as well - including helping them on their journey to financial wellness and security through modernized benefits like On Demand Pay.
On-Demand Pay is a financial benefit that allows employees to access their earned wages before the regular payday, helping them manage cash flow and reduce financial stress.
Workplace productivity measures the efficiency of employees in completing tasks and achieving goals, often influenced by factors like financial stress and job satisfaction.
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