Thefinancial well-being of employeesIt is becoming an increasingly important aspect in the current coronavirus situation. 98% of employers admit that the financial well-being of employees affects their businesses, particularly in relation to productivity (67%) and commitment (62%), as indicated in the report “The Future of Pay” by ADP (Automatic Data Processing), a leading company in the world in the use of technology for the management of Human Capital (HCM). As a result of the health crisis and the possible future economic crisis this problem will become an even bigger challenge for employers.
The new scenario is negatively affecting the labor landscape and both companies and employees must adapt to the new situation and try to find solutions that satisfy both parties. The ADP study indicated, for example, that almost half of employees would pay once a year to be able to collect when they needed it, and 20% would do so at least once a month. Due to situations such as ERTES or the reduction of invoicing in companies, employees and employers must operate with other types of means such as optimization of payroll management or greater flexibility in collection. The coronavirus is creating a new class of “on-demand” workers who can respond to a company’s immediate needs in hours or even minutes. And despite the existing technology, the collection methods and payment cycles do not adapt to the urgency of the health crisis.
For example, 70% of employers think that salary level is the main motivation to accept a job, while according to 40% of employees, the choice of different payment options is of great importance, mainly in frequency. For their part, more than half of European employees (58%) believe that employers should show interest in this matter. However, there is still a difference of opinion on how employers should respond to the financial well-being of their staff.
According to Ral Sibaja, Head of Operations of ADP Iberia, “the issue of financial well-being must be placed on the agenda. The current situation around the virus and the imminent economic crisis increase the concern about the economic health of companies and employees. That is why it is important that employers not only pay attention to the new needs of their employees, but also offer them options to help them improve their situation. This need already existed before the crisis but now it has become even more urgent. ”
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