“The only constant in life is change.” —Heraclitus
Amid today’s constant change, you might be tempted to crumple up this gem from Heraclitus and toss it in the trash. Right now, you probably crave stability and wouldn’t mind a break from volatility, particularly since today’s ups and downs likely impact you and your employees’ financial wellness so heavily.
On the other hand, now presents an ideal time to embrace change on your own terms. Doing so with PayActiv can transform your workplace in ways that boost workplace productivity and improve employees’ financial wellness.
Prior to a switch to automated systems in the 1980s, businesses handled payroll in long, dynamic, error-ridden manual processes. Human minds and hands made mistakes, and rifts between employees and employers about inaccurate pay ran rampant.
Can you imagine handing your employees envelopes of cash on payday? It seems crazy now, yet that was the norm before companies started issuing checks. Today, direct deposit makes payday nearly seamless. Thank goodness payroll evolved.
Strangely, however, payroll stopped progressing in the 1990s when Social Security payroll deductions forced an “upgrade” in automated payroll systems. Since then, HR departments and employees alike have been stuck with a rigid system that keeps workers trapped in cycles of debt.
This system expects workers to work up to eighty hours before employers pay them even once. Workers who suffer between biweekly paychecks simply must do so, not because employers want them to struggle, but because letting time lapse between work and pay is simply how we do things.
We don’t have to, though.
By adopting PayActiv, we begin to transform the way we think and talk about pay in the workplace. Phrases like “Earned Wage Access,” “on-demand pay,” “financial wellness,” and “financial distress solutions” become commonplace. Workers talk less about payday loans and financial stress and more about budget management, saving, planning, and achieving their financial goals.
This transformation makes workers happier and workplaces more productive. A win-win.
Once you realize it is possible to offer employees more flexibility in the timing of their pay, it’s hard to go back to the usual methods. While there may be benefits to the traditional weekly, biweekly, or monthly payroll system, you now recognize that you have the power to transform workers’ financial lives, to help them improve their budget management and avoid predatory lending schemes.
You want to make this change, but you also know that overhauling an existing payroll system can be technologically difficult and expensive. Changes to a payroll system can put timely and seamless pay at risk. You may think that it’s just not worth risking the convenience and predictability of your current system.
PayActiv enables companies to keep their existing payroll systems while offering employees access to pay when they need it, even daily. Companies can adopt PayActiv without any expense, and employees can use it for little to no cost. PayActiv handles all the integration details, which doesn’t affect your payroll process or systems in any way, all at no cost to the employer.
Along with on-demand pay, workers gain access to numerous resources and tools that help with budget management and promote overall financial wellness.
With PayActiv in the workplace, workers feel less like pawns and more like partners with employers. When they are paid for the time they’ve worked, without delay, they have evidence that their hard work matters to the people they’re working for. They feel like their employers care about their financial health and that they’re part of a system that contributes to their financial wellness.
That sense of partnership may not develop all at once, but if you make conversations about PayActiv’s features part of your onboarding process, employees are more likely to feel like a valued part of the team from day one.
Continue the conversation by informing them about all of PayActiv’s features, such as access to Uber and Amazon without a credit card, prescription drug discounts, and quick cash pickup at Walmart. When your employees experience the support you’re giving them through PayActiv every day, you create even stronger connections with them.
People who feel supported are more likely to stick around, saving you recruitment and turnover costs. In fact, companies with PayActiv report a 36 percent reduction in turnover, because they’ve built a relationship with their employees that works for the long term.
Circumstances will continue to change, but you can create meaningful transformation in your workplace and your workers’ lives simply by adopting PayActiv. It’s free to you and free or low-cost for them. It’s easy to use and offers a priceless benefit: financial wellness and a workplace that truly cares.
In fact, a study found that only one in five (21%) employees would describe...
*The Payactiv Visa Prepaid Card is issued by Central Bank of Kansas City, Member FDIC, pursuant to a license from Visa U.S.A. Inc. Certain fees, terms, and conditions are associated with the approval, maintenance, and use of the Card. You should consult your Cardholder Agreement and the Fee Schedule at payactiv.com/card411. If you have questions regarding the Card or such fees, terms, and conditions, you can contact us toll-free at 877-747-5862, 24 hours a day, 7 days a week.
1 Many (but not all) employers, government benefits providers, and other originators send direct deposits early with an effective of 1-2 days later. Beginning with your second direct deposit of at least $5 from the same source, Central Bank of Kansas City (CBKC) will post the funds to your Payactiv Visa Card when we receive it, rather than on the effective date. This may result in your having access to the funds sooner. The date CBKC receives your direct deposit and the effective date are controlled by the originator.