While a paycheck is the most important part of an employee’s compensation package, it is far from the only concern. Insurance and retirement benefits are a longtime staple of benefits packets, but a growing number of employers are moving forward with new initiatives to help workers overcome financial struggles and reach new levels of financial stability.
The Wall Street Journal recently shared how companies like PayActiv are partnering with employers to reach win-win solutions to help their workers improve their financial health while boosting the bottom line. If you’re looking for opportunities to boost employee morale and loyalty, a financial wellness benefit may be the perfect fit.
When the CEO of Nazareth Home, a long-term care facility operator based in Louisville, Kentucky, found out that a large number of her employees were regularly paying overdraft charges and taking out expensive payday loans, she knew something had to change. Two years ago, the company became one of a growing list to offer PayActiv as an employee benefit.
In the time since, 338 of 400 employees have enrolled and 280 regularly use PayActiv. Unlike payday loans that can charge hundreds of percentage points in interest, PayActiv charges just $5 per pay period when used. When the rent is due or it’s time to buy groceries, early access to earned wages at a low cost can help workers save precious dollars on fees and interest.
CEO Mary Hanes told the Wall Street Journal that PayActiv attracts so many new workers that they were able to cut back on staffing agency costs. And when employees feel valued and stable at work, they are more likely to stick around.
Robyn McGuffin is a Nazareth Home employee who uses PayActiv once or twice per pay period, on average, to help cover bills and expenses due before payday. She also tapped into her paycheck early when a car battery died and when her fiance was in between jobs. She says that PayActiv saves her about $80 per month on other financial costs.
In addition to early access to earned wages, PayActiv benefits include financial counseling and tools to help workers better manage their budget and savings.
As our industry grows and matures, we work actively with regulators and employers to ensure everyone gets the experience they expect. PayActiv CEO Safwan Shah is actively engaged with regulators in California to protect employers and workers looking to create more affordable alternatives to predatory payday loans.
High turnover is an incredibly expensive problem for any business to grapple with. Recruiting and training new staff takes resources away from other parts of the business and distracts managers and executives from doing other important work.
PayActiv integrates with most popular payroll services and is available at no cost to employers. Yes, you read that right. You can get up and running with PayActiv in less than a week and it doesn’t cost the employer a dollar.
Employees with stable finances are more likely to stick around and perform better when at the workplace. Financial stain can bleed into worker productivity and customer service. Workers that don’t carry the extra weight of financial struggle, on the other hand, are more likely to come to work happy, rested, and ready to give their best effort every shift.
Over the last decade, employers have added a range of new benefits spanning from health initiatives to student loan payment support. But if a worker is worried about paying their rent and putting gas in the tank, it can be tough to focus on anything else.
With PayActiv, millions of workers are empowered to improve their financial situation. If you are interested in adding PayActiv as a benefit for your valued team, contact us today!
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