For on-demand pay tools to be successful they need to do more than offer early access to workers’ paychecks. On-demand pay platforms have to help with savings in order to improve employees’ financial resilience.
Despite the proliferation of budgeting apps and financial education programs, behavioral psychologists and economists agree: Saving is hard. The good news? We now have proven strategies that work to increase savings. And we know that employers are uniquely positioned to help implement those strategies in tandem with on-demand pay.
Why savings is the bedrock of long-term financial stability
Research-based strategies that work to increase savings
Why employers are uniquely positioned to influence savings behaviour
Three steps employers can take to help employees build savings
Director Total Rewards
Noodles & Company
When employers decide to offer on-demand pay platforms, their goal is often to help workers financial health. On-demand pay will help their workforce immediately but doesn’t offer long-term solutions; that’s where savings comes in.
We wrote this guide to underline the importance of pairing on-demand pay with powerful tools designed to improve savings. As employers evaluate on-demand pay solutions, it is critical to consider whether earned wage access providers are motivated to create a habit of reliance on early pay, or whether they have a responsible and holistic approach focused on improving employees’ financial resilience and savings.