If you’re not embracing flexible pay options, consider this – 47% of Gen Z workers and 31% of millennials say they would turn down a job if they couldn’t choose their method of payment. Alternatives to checks and direct deposit, like pay cards, can help you recruit and retain talent and prepare your business for the future.
Employees appreciate pay cards because they are prompt, reliable and convenient. They also provide financial wellness for those who need help managing their expenses. Through a website or mobile app, they can easily view their balance and pending charges or set low-balance alerts.
Another reason pay cards are on the rise is the cost savings. Workers who don’t have a bank account often pay upwards of $5 each time they need to cash a check, and when you factor in printing and distribution fees, paper payments cost employers an average of $3 per check.
Despite the inherent advantages of pay cards, using them without a well-thought strategy might be detrimental to your goals.
In addition to employee adoption, you need to think about complying with state laws that govern how people are paid. Our Employer Pay Card Guide can help you navigate these issues and more. It covers pay card benefits and challenges, best practices and the keys to implementation.