Employee Financial Wellness is Key to Productivity
According to Mercer’s Inside Employees Minds Survey, on a per employee basis an average of 13 hours and as much as 20 hours are lost per month worrying about financial issues. Globally, the business community is recognizing the implications of financial stress in the workplace and is adopting financial wellness programs to give workers early access to their earned wages to enhance cash flow and alleviate financial stress.
PayActiv has helped employees avoid over $35M in direct Fin-Tax®costs in 2018
"PayActiv costs the employee $5 in any month the product is used (although employers frequently subsidize all or part of the fee). Meanwhile, the typical overdraft or payday loan costs around $35. And PayActiv is available to all employees regardless of past credit history." - Todd H. Baker and Snigdha Kumar, Harvard Kennedy School
19% Lower Turnover Rate
Active users of PayActiv products had a 19% lower turnover rate than Enrolled users.
"Our analysis clearly shows that active use of the PayActiv product by an employee is associated with a materially lower turnover rate as compared to those employees who think about using the product but don’t use it actively. This effect, especially if it is shown to persist over a longer period, provides evidence useful to corporate decision makers assessing whether FinTech financial health benefits like PayActiv can reduce turnover costs.
Once again, the dollar benefits to employers using this type of FinTech product could be quite large. If we apply the PayActiv reduced turnover rate to our simplified Target attrition model, we would anticipate annual cost savings of ~$110 million per year."