[Global] Payroll is behind the curve on flexible payroll solutions

A new report from Everest Group has revealed that people around the world want flexible access to their wages yet global solutions to meet this demand remain in short supply, London Loves Business reports.

The report – Global Earned Wage Access (EWA): Strategic Benefits for Employers and Financial Well-being for Employees – shows that a combination of new demands from employees in a flexible working world, the need for quick access to funds amid financial concerns and a desire for a consumerised experience, is driving a need for employers to provide access to earned wages as and when workers want it.

According to Everest Group, despite the demand only a handful of vendors currently offer Earned Wage Access (EWA) solutions and even fewer provide a global approach. This potentially shows a reluctance to change what may be viewed as ‘unbroken’ processes in payroll or a simple lack of awareness of the availability of a global solution.

Failing to move with the times could be detrimental to hiring strategies. According to Everest Group, 75 per cent of the global workforce is currently looking to change jobs. 57 per cent of respondents indicated that wellness programs, including financial wellbeing, have a direct impact on their employee experience. And 43 per cent said that process improvement was a strong influencer, meaning future talent recruitment and retention strategies could be hindered without EWA solutions.

Paul Bartlett - CloudPay CEO - said, “The shift to more flexible payroll solutions has been gaining speed for some time, but it’s certainly accelerated in a post-COVID landscape where agile working options, combined with cost-of-living concerns, are rife.

“At CloudPay we’ve witnessed this evolution and have been adapting our global solutions as a result. It’s clear from Everest Group’s report that we’re only on the cusp of the adoption of Earned Wage Access and with a breadth of market drivers continuing to influence the market globally, this demand will only increase. However, there’s long been a reluctance across payroll to change processes that seemingly work.

“As the war for talent rages on, businesses need to ensure they are giving their people what they need, and to offer parity across a global workforce. According to this latest insight from Everest Group, people want more control over when and how they access their pay. Those who don’t provide this will lose out on top talent.”

The news of Everest Group’s findings follows recent data from CloudPay which revealed that the number of employers signing up for “on-demand pay services” has risen globally.

Additionally, the number of withdrawals per month of earned wages has more than doubled since October and the average amounts withdrawn have dropped from £97 to £66. This suggests employees are increasingly accessing earned money, as and when they need it, to cover their daily living costs.

Source: London Loves Business

(Link and quotes via original reporting)

A new report from Everest Group has revealed that people around the world want flexible access to their wages yet global solutions to meet this demand remain in short supply, London Loves Business reports.

The report – Global Earned Wage Access (EWA): Strategic Benefits for Employers and Financial Well-being for Employees – shows that a combination of new demands from employees in a flexible working world, the need for quick access to funds amid financial concerns and a desire for a consumerised experience, is driving a need for employers to provide access to earned wages as and when workers want it.

According to Everest Group, despite the demand only a handful of vendors currently offer Earned Wage Access (EWA) solutions and even fewer provide a global approach. This potentially shows a reluctance to change what may be viewed as ‘unbroken’ processes in payroll or a simple lack of awareness of the availability of a global solution.

Failing to move with the times could be detrimental to hiring strategies. According to Everest Group, 75 per cent of the global workforce is currently looking to change jobs. 57 per cent of respondents indicated that wellness programs, including financial wellbeing, have a direct impact on their employee experience. And 43 per cent said that process improvement was a strong influencer, meaning future talent recruitment and retention strategies could be hindered without EWA solutions.

Paul Bartlett - CloudPay CEO - said, “The shift to more flexible payroll solutions has been gaining speed for some time, but it’s certainly accelerated in a post-COVID landscape where agile working options, combined with cost-of-living concerns, are rife.

“At CloudPay we’ve witnessed this evolution and have been adapting our global solutions as a result. It’s clear from Everest Group’s report that we’re only on the cusp of the adoption of Earned Wage Access and with a breadth of market drivers continuing to influence the market globally, this demand will only increase. However, there’s long been a reluctance across payroll to change processes that seemingly work.

“As the war for talent rages on, businesses need to ensure they are giving their people what they need, and to offer parity across a global workforce. According to this latest insight from Everest Group, people want more control over when and how they access their pay. Those who don’t provide this will lose out on top talent.”

The news of Everest Group’s findings follows recent data from CloudPay which revealed that the number of employers signing up for “on-demand pay services” has risen globally.

Additionally, the number of withdrawals per month of earned wages has more than doubled since October and the average amounts withdrawn have dropped from £97 to £66. This suggests employees are increasingly accessing earned money, as and when they need it, to cover their daily living costs.

Source: London Loves Business

(Link and quotes via original reporting)