Workers’ Day: Why you should consider paying wages on demand for your employees

Engaging and retaining a group of skilled and highly motivated employees to perform the day to day demands of their roles are fundamental requirements for the success of any business venture in Nigeria. It is also important that while they are performing their assigned tasks, there are no (or at least minimal) distractions that could affect the quality of their output. According to PwC’s 10th annual Employee Financial Wellbeing Survey, more than 63% of employee stress increased during the pandemic, and many were four times more likely to struggle to cope. monthly household expenses. The report goes on to say that employees were twice as likely to have used a payday loan or payday advance.

In recent times, financial distress in Nigeria has reached an all-time high, with some employers taking cost-cutting measures such as layoffs, pay cuts and freezing raises and bonuses. Employers are in a difficult situation, especially because the productivity of the workforce is directly proportional to the overall health of the company and its operations. Therefore, employers must take deliberate steps to ensure that a framework that supports the financial well-being of employees is embedded into the organizational culture of the company.

With many companies in Nigeria placing high value on key metrics such as productivity, retention and physical health, it has now become essential for employers to implement innovative solutions that provide some level of security to protect the above measures and the organization’s net income. . This is necessary to avoid lost productivity due to distractions that can often result from unmet financial obligations. A quick survey of some Nigerian employees whose financial stress has increased over the past few months due to inflation revealed that their finances have been a distraction at work.

These are the circumstances that have necessitated a greater focus on the financial well-being of employees around the world. Pay-as-you-go is one of the growing financial wellness solutions that have been proposed. Also known as Earned Wage Access (EWA), this is a system that allows employees to access wages earned before the traditional four-week payment cycle. Essentially, the pay-on-demand model allows employees to access their earned salary. It is not a loan or an advance; it is money that they have earned over a period of time.

Albert Owusu-Asare and Ameer Shujja, co-founders of Cadana, a Ghana-based tech start-up with recent expansion into Nigeria, are at the heart of this innovative solution for African businesses. Cadana helps companies delight their employees by providing a modern payroll platform that allows employees to access their earned pay on-demand, anytime, from anywhere.

With its formidable mission to accelerate wealth creation for African workers, the pay-as-you-go business is building a flexible, real-time, borderless compensation solution. Given the unpredictability of our daily lives, unexpected bills and expenses can cause great distress to employees who have no choice but to resort to payday loans with often unfavorable repayment terms.

Cadana is shaping the future of compensation for work by working on the vision of giving more than 400 million African workers access to financial solutions that will impact the culture of work in Africa through increased productivity. The compelling platform helps African HR managers digitize payroll, statutory compliance, onboarding, offshoring, reporting, time tracking, and other processes. Cadana’s time tracking solution automatically syncs with payroll to make disbursements seamless, making life easier for people managers and small business owners throughout the payroll cycle.

With the current state of inflation globally, and especially in Nigeria, it has become essential for business owners to explore solutions such as Cadana to address issues related to poor financial health of employees, as these issues hamper workforce productivity.

According to the 2019 Financial Wellbeing Index, 19% of employers reported an increase in absenteeism due to financial hardship. According to the same study, 22% of employers see a drop in productivity due to poor financial health. At this point, it’s safe to say that with the help of technology, pay-as-you-go can significantly reduce financial stress, resulting in a more motivated and productive workforce in Africa.

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