One thing our experienced team has learned is that employee benefits are not one-size-fits-all solutions. Every company is different, every team is different, and employee benefits are ever-evolving.
Karen Oakey, Director of Human Resources for Fracture, summarized it perfectly, saying “Benefits can make up to 30% of an employee’s total compensation, companies should not overlook or short-change how they approach benefits strategy or shopping.”
We surveyed HR professionals globally. Our top findings were that:
A pay advance is when your employer agrees to pay you all or part of your next paycheck before you have worked for it. Chances are, your employer is not going to simply hand you a check. There will be paperwork involved, and potentially some interest. For that reason, an advance is something that should only be used for emergencies.
Typically, employers only agree to give pay advances when there is a true need. Even then, not every employer is going to be willing to give advances. It creates an unnecessary risk for the company.
If you do find yourself in a situation where you don’t have enough money to make it to your next paycheck, and you don’t have another option (such as Rain), it may be time to ask your employer for an advance. …
We all have financial emergencies from time to time. The Federal Reserve found that 46% of Americans would not be able to cover a $400 unexpected expense. When people can’t cover unplanned expenses, they end up in a debt cycle. They take out loans or add to their credit card debt, and their interest keeps building.
Realistically, most Americans probably need to earn more money. However, the federal minimum wage is still set at $7.25/hour, and many businesses can’t afford to pay their workers more than that. So what is a struggling American to do? …
Early wage access programs allow workers to gain access to wages before their company’s regular payday. These programs are great for helping employees make it from paycheck to paycheck, which in turn increases their productivity and reduces company turnover rates.
Since these programs simply provide access to money that the user has technically already earned, it is not a loan. There is no interest. Early wage access companies typically charge a small fee (a few dollars) for each early withdrawal. …
One of the most common questions we get is, “Doesn’t more frequent pay encourage bad spending habits?”
In theory, it could…but that’s not usually what happens.
Think about daily or on-demand pay like an ATM. Just because all your money is in your bank account, doesn’t mean you’re going to spend it all in one day, right? Some people with really bad spending habits might, but most people are going to have some sort of restraint.
Instead, having the freedom to access wages any day can result in stronger financial wellness. Here’s why.
Daily pay or on-demand pay from Rain gives people the option to develop stronger budgeting skills. When you’re only getting paid every other week (or even less often), it can be hard to visualize how long you need to make each paycheck last. You may forget to leave room for emergencies, or you may forget about a bill that only comes once per quarter. When you have instant access to your earned wages, budgeting is much less of a problem. …
By Anastasia Iliou at Rain
Employee benefits are becoming increasingly competitive. Gone are the days when you only needed a robust health insurance program to survive. People are expecting more from their employer, and you’ll have to comply to get the best job candidates.
Airbnb is offering travel stipends, Twitter employees get laundry and dry-cleaning services, and Netflix provides a full year for maternity and paternity leave. Those benefits can all add up very quickly, but don’t panic if your company doesn’t have that large of a benefits budget. Financial wellness benefits are wildly popular, effective, and cheap to implement.
Financial wellness is a term that describes not necessarily how much money a person earns, but how healthy their accounts and their credit are, overall. There are plenty of high-earners who live paycheck to paycheck either due to financial illiteracy or unfortunate circumstances. …
If you search the internet for “paycheck to paycheck,” you’ll find several scary statistics, studies, and political opinions. We wanted to go straight to the source and publish some real stories from real people who have lived paycheck to paycheck.
The numbers can tell you how big of an issue this lifestyle is, but these stories can tell you what it means.
CareerBuilder conducted a survey in the summer of 2017 which found that a whopping 78% of Americans live paycheck to paycheck.
What does that mean really? Does it mean that 78% of Americans are underpaid? Possibly — but the study was not limited to low-wage workers. Plus, whether or not you rely on every single paycheck coming in on time is not indicative of spending habits and financial literacy. …
By: Anastasia Iliou at Rain Instant Pay
Today, 78% of Americans live paycheck to paycheck. When unexpected costs arise, they end up caught in a debt cycle. How do we fix this as a culture?
Naturally, most Americans want higher wages — but the reality is that many companies are not in the position to offer raises. Right now, during this COVID-19 crisis, companies are forced to do the opposite. So, how are people who live paycheck to paycheck expected to get by?
Most companies pay either biweekly, weekly, or monthly — but that doesn’t always work for people who live paycheck to paycheck. Even if you set a strict monthly budget, unplanned expenses are going to pop up over time. Whether it’s a surprising medical bill, a speeding ticket, or an abnormally high electric bill, it’s hard to keep your budget the same every month. …
Yesterday, across the nation, millions of salaried office workers were stocking up on food and paper goods, preparing for a long week of working from home. They were complaining about how difficult it would be to work with their kids and pets at home and they were scrambling to clean their home offices in preparation for Zoom meetings.
Meanwhile, millions of hourly workers who cannot work remotely, especially in food and entertainment industries, were told that they would either be reduced to half of their normal hours or would not be called into work at all for the next few weeks. …