Financial uncertainty has taken a toll on employees’ wellness and has caused even the best companies to struggle with a stressed and preoccupied workforce. The problem surfaced prominently during the COVID-19 pandemic - when businesses were managing to stay afloat while employees were heavily reliant on paychecks.
60 percent of Americans shuddered at the thought of covering a $1000 financial emergency while 61% were of the view that, they should not have to wait until their scheduled payday to meet their expenses.
Concept of Financial Wellness- Redefined!
Employees' financial wellness includes the ability to manage their day-to-day expenses and not be taken aback by expense-based emergencies. It means that employees do not have to rely on predatory loans with high-interest rates.
Building a financially resilient workforce soon became a business imperative for many employers. Earned Wage Access (also referred to as wages on-demand) quickly became the top choice to decrease financial strain on employees.
With more than 50% of Americans living paycheck to paycheck, including hourly workers in the healthcare, transportation, and QSR industries, earned wage access or wages on-demand looked like one of the many possible ways to decrease financial strain on employees.
Financial Matters to Address
Lack of financial inclusivity for all and living paycheck to paycheck is a tremendous challenge for most working-class Americans.
In a recent interview with Startup Boston, CEO OrbisPay, Mo Saeed states:
“One of the pressing problems with society today is that only the affluent have access to financial services. There is a vastly underserved market in the everyday American population. The everyday American doesn't even have $400 worth of savings in their bank account.”
He further addressed the challenges faced due to unforeseen emergencies like your car breaking down or if you have a down payment pending. We knew we had to do something about it.
What followed was a discovery for OrbisPay’s motive: to democratize financial services.
Finance Management shouldn’t be a problem anymore
To cater to these unexpected financial shocks, employees often fall prey to payday loans which typically amount to 600% interest rates on that loan, leaving them with less than half of their pay before addressing monthly expenses.
In such stressful circumstances, workers are likely to make poor life and work decisions. All of this takes a toll on employee mental health and causes the employer to compromise, ignorant of the underlying burdens.
Instant access to their earned wages whenever they need it, is the only solution to help workers escape from the vicious cycle of predatory lending.
Beware of the Villain
Every story has a villain. Consider one here. As many are standing up to alleviate the financial crunch and help people achieve financial wellness, many predators are targeting your profits in the name of providing you with easy cash.
Many financial companies would hide behind a “caring” brand under the guise of helping people in need but trap them in a vicious interest cycle, further adding to their problems.
Rather than catering to the customers’ problems, some financial services are overpriced and prey on the fact that you do not have other handy alternatives. Some Americans have even ended up losing 14% of their income to predatory credit products.
Do your research and be selective about the financial service you choose!
Making a Difference through Fintech
The primary purpose of stepping into Fintech is to make a difference in the lives of people who matter and to create a financially inclusive society for all.
The first step towards tackling this problem is to offer Wages On-Demand with no hidden fees and nasty surprises.
Let’s see how this can solve the problem of a bright and talented lady, “Ariana,” who aspires to be a pediatrician. Ariana’s dad lost his life in a car accident, while her mother is the sole breadwinner, left to raise her and her younger siblings.
Debra, Ariana’s mother, works two jobs- one as a waitress at a restaurant downtown and as a seamstress in the evenings. While work at the tailor shop isn’t much, she relies on preapproved credit cards for a $5000 share in her bills. Only to her horror, she noticed that the interest rate on the credit card is 29%, and she now owes double to the credit card company.
On the other side, Ariana does well in school but must work at a store every night to help her mom. She hardly finds time to study while on duty and doesn’t get the grades she needs, to obtain a scholarship. The reality is she can’t enter college at usual fees without relying on credit, which means digging the family into further debt.
If only there had been a way for Debra and Ariana to get their wages on time, with zero interest, Ariana would have been on her journey towards becoming a devoted pediatrician.
But the dream was shattered, and she had to give up without even starting the journey. Nobody deserves to give up on their dreams because of financial constraints when they can access their hard-earned money without guilt.
OrbisPay at Work
“It’s time we started looking at wages differently, which is why our wages on-demand platform empowers and protects the most vulnerable. We’re on a mission here and our team members continue to strive to offer the best-in-class products and services.”
Mo Saeed, CEO OrbisPay
We, at OrbisPay, believe that a financial crunch shouldn’t get in the way of a hardworking employee or shatter someone’s dream of becoming who they want to be. Being paid whenever one needs it; should be the “new normal”.
With zero cost, you can be a part of building and leveraging a financially resilient workforce. OrbisPay is entirely free to sign up and helps you automate the payroll process within a few clicks. Now your employees can enjoy a stress-free work experience and withdraw their day’s salary whenever they want.
Feel free to visit OrbisPay for more information.
A financially inclusive society goes a long way! Let’s work towards achieving financial wellness together.