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- a 29% reduction in turnover
- an eight-hour-per-month reduction in absenteeism
- twice as many job applicants compared to those who don’t.
A previous ADP research also found 96% of employers offering EWA find that their employees like it. That same study finds 96% saying it helps with talent attraction, and 93% saying it helps with employee retention, noted Workable.
However, there are possible drawbacks to on-demand pay, notes Workable.
“It may lead to impulsive spending on the part of employees if they lack financial literacy or discipline. While this falls more on the employee than it does on you as an employer, it’s worth thinking about.
“Also, some on-demand pay services charge extra fees, which can add up over time.
“And finally, in contrast to the above-listed benefit of reduced administrative work. An on-demand pay model built into an existing payroll system can lead to numerous technical and logistical headaches, at least in the short term.”