A new study has shown that businesses in the staffing and human resources industry who cling to weekly pay schedules miss out on significant cost savings. Payroll expenses could be reduced by up to 50%.
The Access Group’s on-demand payment experts, Access EarlyPay, analysed the 54,000 Indeed job postings to determine which sectors were most reluctant to switch to monthly pay despite the savings that could be made.
Human resources and staffing was one of the sectors with the most weekly-paid positions. 10% of all jobs in the sector offered weekly wages rather than monthly salaries to applicants.
Monthly payrolls are a cost-effective and easy-to-manage solution to rising costs and margin pressures. They also support growth and improve cash flow.
Data shows that switching to a monthly salary structure can save employers up to PS100 annually per employee. This could add up to PS140,000 for companies with over 2,000 employees.
Abhishek Agrawal is the general manager of Access EarlyPay.
This report highlights the urgent need for companies to improve their financial well-being by switching to monthly pay. Weekly pay is flexible for employees but the cost savings and efficiency gained by monthly payroll cannot be denied. Businesses must recognize that every penny counts.
It’s time to take advantage of the savings and adapt to their needs, especially in areas that are currently behind, such as human resources and staffing where 10% of positions still pay employees weekly.
On-demand pay can give you and your team more peace of mind. EarlyPay users have a 30% higher tenure. 46% of them work extra hours because they are able to access their wages instantly. And 93% report that on-demand payment has helped them get through the current cost-of living crisis.
For more information about how businesses can switch from weekly to monthly pay, view the full report here https://www.theaccessgroup.com/en-gb/earlypay/resources/on-demand-pay/easing-the-transition-managing-the-shift-from-weekly-to-monthly-pay/
