Coronavirus increases concern among companies for the financial well-being of their employees

Drafting. The financial well-being of employees is being an aspect Increasingly important for companies in the midst of the coronavirus.

According to the report The Future of Pay, produced by Automatic Data Processing (ADP), a multinational provider of technology for Human Resources management (HCM), 98% of employers admit that the financial well-being of workers affects their businesses, particularly in relation to productivity ( 67%) and commitment (62%).

As a result of the health crisis and the possible future economic crisis, this problem will become an even bigger challenge for organizations.

The new scenario is negatively affecting the job outlook, 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 the employees would pay once a year to be able to collect when they needed it, and 20% would do it at least once a month. Due to situations such as ERTEs or the reduction of billing 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 workers “on demand” They can respond to the immediate needs of a company in hours or even minutes. And, despite existing technology, collection methods and payment cycles do not adapt to the urgency of the health crisis.

For example, 70% of employers think that the 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 his part, more than half of European employees (58%) believe that employers should be interested in this issue. However, there is still a difference of opinion on how companies should respond to the financial well-being of their staff.

According Raúl Sibaja, head of operations of ADP Iberia, “You have to put the issue of financial well-being 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 ”.

“So 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. ”, Add.

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