With inflation high and union strikes dominating the headlines, many employers are naturally worried about what they can afford to pay their workers. Despite good intentions, the current economic climate is making it almost impossible to match the expectations many workers have for pay rises. In the care sector, where staff turnover remains an enormous challenge, this mismatch is causing even greater concern.
However, what you pay is only part of the puzzle – when you pay matters as well. By approaching this from a different angle, employers like Home Instead, the NHS and Tesco are taking steps to reduce staff turnover and increase wellbeing by putting their employees in control of when they are paid.
On-Demand Pay is a new technology that enables workers to access some of their earned income any day they need, rather than having to wait until payday. This provides a debt-free solution for dealing with unexpected expenses and helps solve personal cashflow issues.
Interestingly, one of the UK’s biggest employers, Capita, has almost halved staff turnover at its call centres since introducing On-Demand Pay. By helping to smooth out the financial ups & downs inevitable for many care workers, Capita’s data shows that On-Demand Pay could help to bring down the industry’s stubbornly high staff turnover rate. Plus, by reducing the gap between work and pay, unfilled shifts plummet as workers are more motivated to take on overtime when the reward is more immediate.
Perhaps most innovatively of all, new technology now enables this in a way that doesn’t impact the payroll systems and cashflow of employers. Payroll simply runs as usual, and everything else is handled automatically by the On-Demand Pay provider.
With On-Demand Pay already commonplace in America and many British sectors like retail, in addition to its recent launch at care giant Home Instead, the technology feels increasingly inevitable for care providers, both big and small. The hope is that, as well as supporting staff through this awful cost-of-living crisis, innovative technology like this might finally help crack the high turnover that’s plagued the UK care industry for decades.