Can employers help by scrapping outdated payday cycles?
According to a recent survey over 2,000 British people, one in four people are skipping meals over their rising cost of living worries.
With inflation at record highs, and increasing financial pressure, especially on ‘lower income’ workers, employers are urged to scrap outdated payday cycles which exacerbate stress.
Steve Tonks, SVP EMEA at WorkForce Software commented: “48% of the UK population frequently feel monetary stress, with financial anxiety being a leading cause of poor mental health for three fifths (60%) of employees – with the rising cost of living soaring it is no surprise that the fear of food poverty is growing. With grocery price inflation reaching 5.9 per cent, the highest level since December 2011, it is inevitable that the most affected by these hikes will be low-wage, hourly workers – many of whom are frontline.”
“For these employees, lunar pay cycles can be a particular pressure point– as there can be up to eight weeks of elapsed time between when hours were worked and when payment is received. As a result, many workers are forced into high-interest payday loans to make it through the month- an issue that is only being exacerbated by rising inflation.”
“Earned Wage Access (EWA) is a simple yet highly effective way to improve the employee experience, while helping workers to better manage their finances both in the short and long term.”
“Employers have a responsibility to help break outdated pay cycles, now more than ever. But, EWA shouldn’t just be a ‘nice-to-have’ during times of economic upheaval. Instead, it should be viewed as a long-term CSR goal for organisations, supported by ongoing education and advice on money management.”