Payroll needs to adapt to the Modern World.
In a world of ever-changing technological developments, payroll has been left behind in the dark ages. And yet, the tech-savvy workforce of today has very different priorities to those of our recent past. These days, employees prioritise flexibility, wellness, and hybrid working over things like job security and title.
It’s for good reason that wellness and flexibility are high on the list of priorities. 35% of employees say their mental health affects their productivity on a weekly basis, and if the pandemic has taught us anything it’s that flexibility in the workplace often increases productivity levels.
Thankfully, we might have waved goodbye to the days of “No work: no pay.” but employee absenteeism is costly for the employer. And it's not just employee productivity that's impacted, absenteeism affects individual, team, and organisational performance. Mental health-related workplace absenteeism cost the UK economy £14bn in 2020, and mental health-related absences are on the rise.
One of the biggest causes of stress is financial worries, which if left unchecked can go on to impact both mental and physical health. And it comes as no surprise that more than three quarters (77%) of staff with money worries say their stress impacts their performance at work.
The statistics are telling:
In 2021, 7+ million people worried that they would not be able to pay their Council Tax bill.
Financial worries and lack of sleep were the main causes of stress among UK adults.
Workers aged 24 to 35 are the largest group of talent who are borrowing money to cover the payday gap for essential items like food and utility bills.
These findings reveal the need for a change in how companies engage with their employees. With this recent shift in employees' priorities and the alarming statistics on mental health, it’s time businesses offer a value proposition that better aligns with employees’ needs.
What do payroll and wellbeing have in common?
According to a meta-analysis of wellbeing data from almost 2 million employees and the performance of over 80,000 businesses, it was found that enhanced wellbeing is positively correlated with both productivity and business profitability. So how can we better look after the financial wellbeing of our employees?
Simply put, by giving the employee control over their money and easy access on a daily, weekly, or monthly basis, financial stress and anxiety, not to mention the need for payday loans, will be greatly reduced.
Wellbeing support in the form of access to earnings is what's needed to reduce the financial pressure today's employees are facing.
At Hi, we've created a new type of finance, making payroll accessible to everyone. Our products allow people to freely access their money at a time that suits them. No more monthly payday, and waiting 30-days for your hard-earned money to hit your bank account. We are committed to increasing financial freedom, flexibility, and wellbeing. A tool that solves the financial burdens of the employee, and gives the employer a payment option that puts their employee wellbeing and security at the forefront.
Giving employees financial resilience not only helps with their budgeting, debt management, and mental health but also provides a huge productivity boost for the employer. It's a win-win. As a company, financing salaries can create huge stress for the business. Hi enables businesses to finance salary payments completely unsecured and without taking on debt.
Giving your talent access to money earned, before payday, is the perfect way to bring payroll into the modern era and provide for the workforce of today.