Financial stability plays a crucial role in our overall wellbeing. Unexpected expenses – particularly in the current challenging economic climate - can disrupt even the most carefully planned budgets.
To alleviate financial stress and give employees greater control over their finances, PayCaptain offers a user-friendly solution in the form of wage advances and emergency cash features. These are available directly to employees through the PayCaptain mobile app and are included free of charge in the payroll solution.
What are wage advances?
Wage advances give employees a financial helping hand before their next payroll is run. Waiting for the next payday can be challenging, especially when financial needs arise and budgets are tight. PayCaptain's wage advances offer a practical solution, allowing employees to access up to £50 each week prior to their regular payday, if they’ve already accrued the salary.
By using this feature, employees can proactively manage their monthly budget and manage their expenses without putting themselves under undue financial pressure by drawing too heavily against their next salary payment.
Setting up a wage advance is straightforward. Once the accrued amount is calculated, employees can request a wage advance through the PayCaptain mobile app. The requested amount is then deposited directly into their chosen bank account every Monday morning, ensuring quick and convenient access to the funds they need.
Wage advances allow employees to cover essential expenses or bridge financial gaps without resorting to costly short-term loans or credit options.
What is emergency cash?
According to a survey by the Money and Pensions Service (‘MaPs’), around a quarter of UK adults (11.5 million people) have less than £100 in their savings account, with one in six people having no savings at all.
When urgent situations arise, many UK workers have no savings to fall back on. PayCaptain's emergency cash feature provides employees with a safety net to help them navigate unexpected situations. In an emergency, employees can request a cash advance of up to £200, provided their salary has already been accrued.
The function is available to employees only once in each pay period. Once requested by the employee through the app, the emergency cash amount is directly deposited into the employee's primary account, offering immediate access to the funds. On the designated payday, the advanced amount is then deducted from the employee's net pay, ensuring the employee receives the correct salary payment.
Why do employees use wage advances and emergency cash?
1. Unexpected expenses can arise at any moment. Whether it's a car repair or home maintenance, wage advances and emergency cash allow employees to address these immediate needs without undue stress or financial strain.
2. Wage advances can help employees manage their monthly budget. Some employees may prefer to receive smaller, regular wage advances to help them manage their monthly budget more effectively. This feature can aid in maintaining financial stability, ensuring bills are paid on time and minimising the risk of falling into debt.
3. In urgent situations, employees may feel the need to resort to high-interest loans or credit cards, which can lead to long-term financial challenges. By using PayCaptain's wage advances and emergency cash options, employees can avoid these costly alternatives and maintain control over their finances.
4. Financial worries can significantly impact an employee's overall wellbeing, attendanceand work performance. By offering wage advances and emergency cash, employers demonstrate their commitment to supporting employees' financial security, reducing stress levels and fostering a positive work environment.
Employers are able to view which employees have accessed the emergency cash feature through the PayCaptain Feature Adoption Dashboard and use the information to build up a picture of an employee’s financial wellbeing. If an employee is having to resort to requesting emergency cash each pay period, this can be indicative of a more deep-seated financial problem than just a ‘one off’ financial emergency.
Employers can see if a pattern is building if an employee regularly uses the function and then be able to offer support and guidance to the employee to help improve their financial situation. Employers can sign postemployees to Money Helper or other financial organisations, available throughthe PayCaptain app, to help them address their financial concerns and improve their overall financial management.
PayCaptain goes beyond traditional payroll solutions and empowers employees to navigate unexpected financial hurdles with wage advances and emergency cash options.
By granting access to a portion of their earned income ahead of payday, employees can more confidently manage their expenses, tackle unforeseen situations and maintain better financial stability. These features not only benefit employees, but also contribute to a more engaged and productive workforce.
PayCaptain Payroll Solutions Limited, www.paycaptain.com is a multi-award-winning Payroll/FinTech company that delivers a fully automated cloud outsourced payroll service. The solution contains many unique and innovative features for employees, helping them to take control of their pay and increase their financial wellbeing.
PayCaptain is a payroll solution that helps employers pay their workforce, regardless of income and personal circumstances. The solution incorporates functionality, however, that's specifically designed to positively impact financial resilience for people struggling with money, or vulnerable and low-income employees.
PayCaptain is the world’s first payroll company to be B-Corporation certified. To read more about B-Corporations, visit www.bcorporation.net
PayCaptain has been recognised and rewarded with two B Corp ‘Best for the World’ awards for being within the top 5% of highest scorers within both the Workers and Governance impact areas in the B Corporation B Impact Assessment.
In October 2022, PayCaptain was awarded the Chartered Institute of Payroll Professionals ’Software Product of the Year 2022’ at the CIPP Annual Excellence Awards.
