Is it time to update how you pay your workers?
A recent study has revealed that the new generation of workers want to have more control over how they are paid, so much so that they will turn down job offers if this isn’t an option.
New generation want modern payroll options
A global study by ADP, a leading human resources provider, shows that almost half of Gen Z job seekers, the generation succeeding Millennials, would turn down a role if the company didn’t offer different options on how they receive their wages. The results from the study show that businesses who want to recruit not only the very best of the emerging talent, but to recruit at all, will need to take a hard look at their payroll and update it to keep in line the expectations of the modern worker.
Employees take control of how they are paid
Belinda Reany, division vice president and general manager at ADP, explains that the younger generation want more choice and that ‘speed, access and engagement are the three pillars [that matter to them].” She believes that as the younger generation are used to on-demand resources and fulfilment it’s only natural many of them want the same control over how they get paid. This could mean seeing prepaid payroll cards or mobile apps that free employees from cashing cheques or waiting for funds to appear in their bank account.
Smaller businesses may need to outsource payroll to compete
Devising a plan to update payroll to cater to the different demands of different people will be incredibly challenging. Employers will need to consider how often they’ll be able to pay staff, how quickly, and if they should make earnings, including unearned time, available 24/7, among other demands. This will likely involve a massive overhaul of how payroll is processed and will require the employer to be able to assess and deduct taxes and other contributions to calculate pay quickly or even in real-time.
Ms Reany notes that managing this changeable cash flow will be more difficult for smaller businesses and recommends they overcome this barrier to competing with the big players by partnering with the right outsourced payroll partner.
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Keep your employees happy by outsourcing your payroll responsibilities to the professionals at Essential Payroll. We offer payroll services that are tailored to your business to ensure accurate and timely payment and HMRC and tax compliance. To learn more, please don’t hesitate to get in touch with us today on 02382 023223.