As the workplace evolves and business dynamics shift, employee compensation is also transforming. In this changing landscape, payroll needs to adjust to put employees first, not only enhancing their experience but also driving cost savings for the business.
A new working environment
People continue to live paycheck-to-paycheck, and 760,000 people took payday loans last year because they couldn’t wait for their pay.
Millennials are the largest workforce since 2020, so flexible workplace benefits as well as hours, location etc. all need to be accessible from a mobile.
Every element of pay needs to be accessible and controlled from the palm of your hand including benefits, timesheets, holidays, sickness.
Workers will no longer have a fixed contract or salary – expect to pay them by the day, the week or project. Since 2020, UK employers are having to operate PAYE for all personal services company contractors.
Daily pay is
Gig economy companies are unable to pay workers daily. They are stuck with 2-weekly or monthly cycles.
What challenges does this mean for businesses?
Replacing staff costs
Replacing staff costs British businesses £4bn each year with the cost per worker exceeding £30k. Attrition rates average 20% as people switch jobs every 5-years.
Traditional outsourced back office pay and associated benefit platform costs approach £100 per employee pa.
Employees are often frustrated with payroll mistakes.
Anyone responsible for pay, talent acquisition & retention will need to be aware of these and have an expense reduction plan
The solution: Get your employees engaged in payroll
Employees who access their pay, several times a month, become more engaged and financially aware which leads to:
Employees who understand their pay and feel fairly rewarded experience less stress and more stability. This boosts job satisfaction, and motivates employees to stay with the company.
Increased staff retention translates into cost savings for businesses, as they avoid the expenses associated with recruitment. It costs on average £30k to replace an employee every 5-years, so every improvement in retaining staff represents a significant cost saving.
Allowing employees to view and access their pay earlier (e.g. daily pay) gives a company a competitive edge in the war for talent.
The paiyroll® App allows employees to view their pay at any time, anywhere and on any device.
We transform an administrative process into a revolutionary benefit for every employee. That’s why paiyroll® is for everyone!
Finally, a payroll app designed to engage everyone in the enterprise
Used directly by employees, managers, operations, HR and finance
E.g. HR upload salary changes, Finance upload commissions
Integrated with HR, Finance and ERP systems