Beyond the pay check: Unlocking the power of employee benefits in 2024’s challenging economy
More than half – 57 percent of full-time employed adults[1] said their finances were the top cause of stress in their lives at the start of 2023. The following 12 months did little to alleviate that stress, with the annual inflation rate sitting at an average of 3.4 percent, markedly higher than the 2 percent target. This manifested as the tail end of a cost-of-living crisis that began with COVID-19 and remained due to a series of geopolitical events, including the Russian invasion of Ukraine.
Workers are simultaneously impacted by the direct price hikes of everyday items and how their employers react to the economic challenges. One survey1, taken in October and November 2023, found that 52 percent of CEOs said their companies had begun cost-cutting measures to aid recovery, which could include layoffs. For example, about 720,000 job cuts were announced[2] in the US over the year, almost doubling the numbers from 2022.
Source: Dayforce
The financial reality for workers going into 2024 is not much better. Forecasters[3] expect the economy to grow by just 1.3 percent, down from a projected 2.4 percent in 2023, and the unemployment rate has risen to 4.2 percent. Workplaces can play a huge role in supporting their employees through turbulent economic conditions through more than just a pay check. Benefits like comprehensive health coverage, matched retirement fund contributions, and emergency savings programs can demonstrate an organization’s commitment to its workforce’s overall health and stability.
One survey[4] found that financial wellness is the most requested employee benefit, and On-demand pay enables employees to access their earned wages at any time between regular pay periods. Traditional pay cycles may not always align with the timing of financial obligations and unexpected expenses that crop up in everyday life. By allowing employees to access their earned wages when needed, on-demand pay means they can manage their cash flow better, avoid late fees, and respond promptly to financial emergencies, ultimately reducing financial stress.
It is not only the employees that benefit from the option of on-demand pay, as there are also significant business advantages to having a contented workforce. Financial wellness has proven links to job satisfaction, and such a benefit can assist with recruitment and staff retention. A survey by Dayforce found that 54 percent of surveyed on-demand pay users say they’re less likely to leave their current employer if the benefit is on offer. Indeed, during a national skills shortage, offering more than just a healthy salary is essential for an organization to attract top talent. Access to every dollar earned in real-time can also increase employee productivity, reduce absenteeism, and encourage staff to take on more shifts.
The positive impact of earned wage access on a business is exemplified in the case of Danone, one of America’s largest food and beverage companies, which implemented Dayforce Wallet in March 2020.
Even though the deployment at Danone was achieved remotely due to COVID-19 restrictions, the implementation was simple, quick, and cost nothing. In two years, nearly a third of all Danone employees had started to use Dayforce Wallet to access their pay, providing them stability during the uncertainties of the pandemic. By 2022, the company had funded more than $13.6 million in pay requests, reducing its pay schedules from six down to two and move employees away from paper pay checks, resulting in substantial time and cost savings.
Source: Dayforce
Dayforce Wallet leverages the Dayforce platform’s unique continuous calculation capabilities for accurate, on-demand payment and real-time data access. As the only native solution on the market in the US, Canada, and UK, it seamlessly integrates with existing payroll processes and eliminates time-consuming reconciliations.
Danone is committed to offering competitive wages and a comprehensive total rewards package to aid recruitment, especially in the competitive consumer-packaged goods sector, and to reflect its B Corp values.
“Dayforce Wallet boosts our reputation as an employer of choice,” said Gavin Flynn, former Director of Technology and Payroll at Danone. “Often, our wages and benefits are similar [to those of our competitors]. We now have this differentiator that allows us to say to a prospective candidate, ‘You can go across the street and get paid every two weeks, or you can come here and get paid every day if you want to.’ Dayforce Wallet really speaks to our employee base and our total value proposition as an employer.”
Dayforce Wallet is an invaluable solution for employers seeking to boost their workforce’s financial well-being and plays a central part in an attractive benefits package for new recruits. It facilitates on-demand access to earned pay, mitigating financial stress, fostering higher employee satisfaction, and reducing staff turnover rates
Employees can set up direct deposit of their pay checks to their Dayforce Wallet Mastercard®, which can be used anywhere Mastercard ® is accepted, or to withdraw funds from thousands of ATMs with no additional fees.
Download Dayforce’s free buyer’s guide for on-demand pay today to discover how Dayforce Wallet can boost employee financial wellness at your organization and guide the workforce through turbulent economic times.
Canada: The Dayforce Prepaid Mastercard® is issued by Peoples Trust Company under licence from Mastercard International Incorporated. Funds loaded onto the card are held by the issuer Peoples Trust Company, a member institution of the CDIC, and are eligible for CDIC coverage. Dayforce Canada Ltd. is not a CDIC member institution. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated. Certain fees, terms, and conditions are associated with the approval, maintenance, and use of the Card. You should consult your Cardholder Agreement and Fee Schedule. If you have any questions regarding the Card or such fees, terms, and conditions, contact Customer Support at 1-888-999-6824, Monday – Saturday, 8 am EST – 6 pm EST.
[1] PwC’s 2023 Employee Financial Wellness Survey, www.pwc.com/us/en/services/consulting/business-transformation/library/employee-financial-wellness-survey.html
[2] Reuters, www.reuters.com/markets/us/us-job-cuts-fall-back-december-nearly-double-all-2023-2024-01-04/
[3] USA Today, eu.usatoday.com/story/money/2024/01/02/2024-economic-outlook-brightens/72055290007/
[4] BenefitsPRO, www.benefitspro.com/2023/05/16/financial-wellness-the-number-1-requested-employee-benefit/
