Employee Aid as an Employee Benefit
Last week I talked about the shift in workplace wellness plans from traditional benefits to employee aid. I met several companies at the California HR Conference that offer more aid focused services that employees can use that are outside what you think of as traditional benefits.
One of the companies that I met with and was impressed with was PayActiv.
In their words, “PayActiv offers a workplace wellness solution offered by employers as a voluntary benefit to reduce employees’ financial stress and improve productivity.”
I spent most of my career in companies with high numbers of hourly workers. The first was retail and then later call centers. Individuals in these industries often work paycheck to paycheck and struggle each and every week to make ends meet. Many of these employees use the loan type services that give you cash the same day but then charge you an astronomical interest fee. Many of these employees are drowning in debt and often count the days until their next pay day.
This is the problem PayActiv is working to fix. They offer real time access to earned income. Employees have access to their pay as it is earned rather than waiting for payday. For employees who run out of money yet need to buy diapers or put gas in the car, accessing money as they earn it could greatly reduce their financial stress.
PayActiv offers this at no cost to the employer and at a very minimal cost to the employee. The cost per transaction is significantly cheaper than using those same day loan services. One of the features that I really found insightful was the limit on how many transactions an employee could have outstanding at any given time. When I first heard that employees could access cash as they earn it, I imagined employees taking out that money on a daily basis and then incurring huge fees or the inability to ever get caught up. The limit makes that impossible.
PayActiv integrates with all payroll systems and is seamless for the employer. Employees access their account via an app they download to their smartphone or via the web. PayActiv funds the transaction and then recoups the money through a payroll deduction plus the admin fee. HR literally has no work to do other than process payroll like normal. Employees can choose additional services as well which could help them build credit or save money.
Here’s what I love about PayActiv and others I will be writing about soon. They are addressing a problem that for years, decades really, many of us have assumed there are no solutions for. We have accepted them as “the way things work” and never really thought about what could be different. This is an innovative solution to a problem that we have all just accepted.
If your employee population is heavy on the hourly worker side and you know that financial issues create stress for them on a regular basis, PayActiv may be a service worth looking into. We HR folks love perks we can offer our employees at no cost to us and that integrate with our existing systems and this does both.
- PayActiv has not paid me to write this post nor am I affiliated with them in any way. I met them at CAHR and felt their service was good enough to share with my readers.