99.9% of businesses in the U.S. are small businesses. Despite increasing inflation and a troubling worker shortage crisis, small businesses continue to prove their resilience and positive impact on the economy, employing nearly half of the American workforce and representing 43.5% of America’s GDP. It’s no doubt that supporting these businesses and their employees is vital to the overall American economic ecosystem.
Unfortunately, small businesses face challenges that large enterprises don’t, such as lack of access to comprehensive benefit packages. Due to high costs, administrative complexities, and limited resources, small businesses often struggle to provide employees with benefits that help them live more stable and fulfilling lives. This can decrease retention rates, decrease employee satisfaction, and increase financial stress.
Incorporating a financial wellness offering might seem like an unnecessary addition for a small business. However, neglecting this aspect could be a big misstep. Research indicates that finances are the primary source of stress for more than half (57%) of U.S. workers. However, according to the HR Research Institute, only 15% of organizations are effectively assisting employees in enhancing their financial well-being.
Human Capital Management (HCM) and Payroll providers have both an opportunity and a responsibility to better support employers using their platforms to offer a broad suite of employee financial wellness solutions. If employers, especially small businesses, are already using platforms to run payroll, the addition of a financial wellness product like On-Demand Pay can only enhance the employee experience.
DailyPay, a worktech platform and leading provider of On-Demand Pay, is redefining the category by embedding On-Demand Pay directly into HCM platforms as a built-in employee benefit at no cost to the employer. Employees can access their earned pay directly within the platform they already use, encouraging higher adoption and engagement. Meanwhile, providers gain a powerful, differentiated solution that enhances their platform, strengthens client retention, unlocks a new revenue stream, and keeps them ahead of the competition. There’s also no active management needed or change to how such employers run payroll.
DailyPay supports 180+ payroll and timekeeping integrations, and can be activated by the employer in as little as 15 minutes. The onboarding process is designed to be as seamless as possible so employers can begin offering the benefit to employees right away. The main goal is to make real-time pay visibility and access a natural extension of the employee workday.
It’s not enough for U.S. businesses to offer baseline benefits when three in four employers say their workers’ financial stress negatively affects their business. Financial wellness offerings are a strategic business practice as much as they’re a way for workers to improve their daily lives. It’s without a doubt that with big business benefits, all businesses can thrive by caring for their employees.
