Weekly, bi-weekly, monthly? Whatever the frequency, payday is always a highly anticipated day for employees. And for many, payday can’t come soon enough.
The average American worker struggles to make ends meet each month, with 78% of American full-time employees living check to check. With a seemingly endless list of bills to pay and financial responsibilities to take care of, it’s increasingly more and more difficult to wait it out for company-mandated paydays.
Financial stress: it is something we have all dealt with more times than we’d like to admit. One in five employees say they run out of money every week. Whether it’s poor spending habits, the cost of living or one of life’s unexpected curveballs, 21% day they run out of money every week before their next payday.
What can employers do to ease the burden of financial stress on employees?
Those who have found themselves in a financial bind have had to turn to a payday lender for a payday loan. Payday loans are high-cost, short-term loans typically meant to be repaid with your next paycheck. Convenient but costly, payday loans carry high interest rates and allow rollovers, trapping many in a cycle of repeat borrowing which in turn leads to more debt.
There are many resources in the marketplace that help individuals manage their finances. Some serve as a saving grace while others, like predatory lenders, aim to take advantage of those who are financially vulnerable.
A Solution That Makes Sense
In recent years, apps like ZayZoon have emerged to offer payday alternatives to employees through their employer, encouraging financial wellness and sustainability. These applications have put a new twist on the standard pay cycles to give employees flexibility and break the cycle of unsustainable paycheck lending practices. This streamlined approach allows the employee to access already-earned wages through a third-party application while still retaining the employer’s standard pay cycle.
How Does It Work?
Applications like ZayZoon offer employees a new level of financial control by giving them access to their already earned wages before payday. ZayZoon’s Wages On-Demand provides a seamless solution for employers to offer payroll advance options all while promoting positive financial management practices.
There are endless benefits that go along with offering financial wellness through ZayZoon. Reducing the financial stress on employees can result in increased productivity, improve recruitment efforts, reduce turnover rates, and eliminate any current administration of employee advances.
In addition, it will:
- Lessen employee’s financial burden. Making payday a little closer can go far in lowering financial stress for your workforce. Employees can access their earnings whenever they need to for a small flat fee.
- Enable them to handle rainy days. I’m sure you’ve heard it: when it rains, it pours. Whether an unexpected car repair, surprise trip to the emergency room, or forgotten bill, with access to ZayZoon, employees can address these things right away rather than waiting until their next scheduled payday.
- Save them from fees. Accessing earned but unpaid wages, employees can avoid predatory lenders who can end up costing them hundreds (or thousands) of dollars in fees and interest.
Join the Financial Wellness Movement
LinkHCM is proud to be a ZayZoon partner, and any of our Workforce Ready clients are eligible to add this service to their accounts, free of charge. Ready to offer financial security to your employees? Click here to get started today.