Businesses now recognize that they can unlock many benefits by modernizing and digitizing the way they disburse funds.
On the one hand, faster and more reliable payments can increase employee loyalty, and instant payments can even serve as a recruiting tool in a competitive talent acquisition environment, according to the Expanding Payments Choice Playbook, a collaboration between PYMNTS and Onbe.
Get the report: Expand Payment Choices Manual
As the world continues to go digital, consumers increasingly expect faster transactions in all aspects of their lives. As a result, they seek digital payments in their working lives rather than waiting for payday for their salary. Gig workers are particularly interested in receiving their wages instantly.
Win the talent contest
“Not only is the offering of digital payment options non-negotiable for businesses, but consumers truly value choice when it comes to payments and disbursements,” Onbe CEO Bala Janakiraman wrote in a statement. PYMNTS e-book.
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When it comes to employee payments, workers between the ages of 18 and 44 don’t just want to get their paychecks fast; they want them immediately. Eighty-three percent said they should have access to their earned wages at the end of each workday or shift rather than waiting for payday.
On-demand pay could improve loyalty by 78%, and 79% said they would feel more valued as employees if paid this way. In terms of talent competition, 81% would be more likely to choose an employer based on the availability of on-demand compensation provided at no cost to the employee.
Rationalization of disbursements
Upgrading to the cloud could help streamline disbursements for aging payroll systems. Companies have been slow to implement cloud-based payroll systems, but usage of these systems has increased to 61% in 2020 from 34% in 2019, and 40% of companies plan to further modernize their systems by 2023.
Businesses need to pay salaries accurately and on time, as this is crucial for employee retention and motivation. These companies must also ensure that they comply with all relevant regulations when doing so.
Digital payroll solutions can eliminate human error that leads to mistakes that hurt employee satisfaction and even result in fines. Regulatory risk is a significant motivation for companies looking to move to cloud-based payroll solutions. Among the motivations cited by these companies are regulatory risk, cost control and shortage of qualified personnel.
Focus on initiatives to engage and support employees
Various additional HR processes, such as employee time tracking and leave administration, are already cloud-based, giving companies another reason to move their payroll to the cloud.
Many of these processes are managed through self-service mobile apps, which can be convenient for today’s increasingly mobile workforce. Legacy payroll solutions, many of which require technical support and are nearing the end of their viability, are often impossible to access remotely.
Faster, modernized payment practices can free up HR and finance teams to focus on other priorities while helping to ensure employee and customer satisfaction. HR departments can spend more time on initiatives to engage and support employees, finance professionals can spend their time identifying potential ways to improve their company’s finances rather than making payments, and beneficiaries at all levels can receive money in the way that suits them best. and without delay.