Why are employers signing up for Instant Pay?

Instant Pay programs are taking the world of payroll benefits by storm by enabling employers to offer more flexible and competitive wages to workers without harming their bottom line.

An intense labour shortage that has frustrated hiring managers in many sectors means that companies need to make use of every tool in their arsenal to retain happy and talented employees.

Enter: Instant Pay.

With Instant Pay, employees can access up to 50% of their earned wages at the end of every workday—all without any extra work for their employer’s payroll department.

But why are employers signing up for Instant Pay, and what benefits does this flexible system offer to companies and workers?

Here’s everything you need to know about Instant Pay and the earned wage access (EWA) programs that could represent the future of workforce compensation.

What is Instant Pay, anyway?

Instant Pay is easy to understand—most of its meaning is found in the name itself. In other words, Instant Pay is a program where employees can get instant access to their pay.

Simple enough, right?

The basic idea is that, rather than forcing workers to wait for days or weeks on end for a paycheque to clear, earned wage access (EWA) programs like Instant Pay offer workers more immediate access to their wages after they’ve finished a day of work.

Instant Pay lets employees unlock parts of their paycheque earlier than usual. This lets employees pay for bills or unexpected expenses that could otherwise disrupt their life and make it difficult to focus on their passions and work.

By enabling workers to access the money they’ve already earned through their hard work, Instant Pay serves both employers and employees. Managers don’t have to worry about a burnt-out workforce that’s overstressed from financial strain, and workers get easier access to the money they rightfully earned through their talented work. When used properly, Instant Pay serves as a win-win for everyone involved.

To better understand how Instant Pay programs operate, the experts at KOHO have put together the best definition available: “Instant Pay is a free payroll benefit that gives employees on-demand access to their pay.”

With more immediate access to their money, employees are happier and better compensated than ever before. This can help a company retain and attract top talent in an ever-competitive workforce market.

The benefits of Instant Pay for employers

Workers love Instant Pay programs because it makes it easier to afford groceries, pay the bills, and have extra spending money in their pockets. It also encourages a culture of competitive and flexible compensation from businesses across sectors that ultimately ensures no one is left behind despite their hard work.

But why are employers across the world embracing Instant Pay like never before? Here are a few reasons.

First, Instant Pay is a free payroll benefit, so companies don’t have to worry about spending any extra money to embrace this revolutionary service. Indeed, implementing Instant Pay is likely to supercharge financial well-being in the long run by reducing worker turnover. It can also ensure that every member of a team is properly compensated and thus less prone to burnout or being lured away by a competitor who offers better wages or benefits.

Reducing absenteeism and worker turnover can mean the difference between commercial success and failure. High turnover rates don’t just reduce workplace cohesion, it threatens to harm your business through brain drain that stifles your ability to innovate or even meet the needs of regular customers on a daily basis.

Instant Pay can also help make social progress in the workplace that benefits employees and employers everywhere. That’s because the gender pay gap is still alive and well in the twenty-first century.

Thankfully, experts note that more flexible and transparent payment systems like Instant Pay that meet the needs of workers and ensure everyone is paid fairly can help remedy this pressing issue. When everyone is on the same page about payment and has access to the money they’ve rightfully earned as quickly as possible, everyone can enjoy a more level commercial playing field.

From attracting the best talent and ensuring all workers have fair access to the wages they’ve earned, Instant Pay programs help employers stand apart from the competition during intense labour shortages that make hiring harder than ever before. With quick integration into existing payroll services, Instant Pay doesn’t cause any additional paperwork or hassle for business owners who are interested in reshaping the future of work.

With experts like KOHO on your side, business owners don’t even have to worry about managing technical glitches. KOHO’s Instant Pay program funds all Instant Pay requests and manages all employee support requests, ensuring business owners can focus on the big picture in the rare event of a payment problem.

Which companies use Instant Pay?

Instant Pay programs may be heralded as the future of compensation, but the truth is that many companies are already making use of this revolutionary service. KOHO Instant Pay is rapidly spreading across Canada, with major brands like HYR, Ameego, and OSL already supercharging their workforces with KOHO’s support.

Given that KOHO Instant Pay is free to implement, takes only a few minutes to master, and integrates well into existing payroll systems, it will only become more common as time goes on—especially as employers realize the economic potential of a flexible and fair payment system for employees.

KOHO even offers complete French and English language support for Instant Pay to ensure that as many companies as possible can adopt the latest compensation plans to enhance their productivity and stand apart from their competitors.

News reports across North America show that modern companies are making more frequent use of flexible Instant Pay programs to attract and retain the best talent during a labour crunch. Major corporations like Walmart are embracing flexible Instant Pay programs, while Uber and Lyft have also implemented Instant Pay to retain their top workers.

Now that KOHO Instant Pay is taking off across Canada, we can expect more companies to treat their workers right by offering these sorts of flexible payroll programs.

Does Instant Pay benefit small businesses?

It’s easy to see why large companies like Walmart and Lyft are making use of revolutionary payment technology to improve their workforce morale. Nevertheless, many small business owners may be hesitant to embrace Instant Pay until they learn how suitable it is for local companies that have smaller workforces.

The truth of the matter is that Instant Pay serves to help small businesses just as much as it does larger corporations.

During the COVID-19 pandemic, a “shop local” trend was ignited across Canada in an effort to support those small businesses struggling with the economic recession. According to American Banker, this “shop local” trend also fueled a growing interest in Instant Pay programs for small businesses owners and employees.

According to the AB report, real-time processing of payments can make it easier for local businesses to ease up strain on their supply chains. This is critically important during a supply chain crisis that’s frustrated businesses of all shapes in sizes in virtually every industry.

Lightning-fast Instant Pay systems also please the employees of small businesses across Canada, who enjoy more immediate access to their hard-earned wages at a time when the bills may be piling up. Even for well-off workers who have managed to avoid any serious economic struggle, faster access to their money means easier and more frequent consumer spending that, in turn, can potentially fuel economic growth in other sectors.

Finally, there’s the element of trust to consider. Instant Pay ensures that workers receive their money more immediately and have faith in their employers to pay what they’re owed. In a service economy with low levels of unemployment, retaining workers and avoiding costly turnover is crucial.

Business owners will thus find that Instant Pay systems, which increase the bond between employers and employees, are healthy for them in the long run.

Implement KOHO Instant Pay for free today

KOHO Instant Pay is excellent for employees, as it helps them stay ahead of bills and manage their money for the sake of long-term wealth building.

KOHO Instant Pay is offered in partnership with Peoples Trust, a federally regulated bank that backs any money that’s loaded into your account with CDIC protection. Small businesses across Canada and large corporations with a global footprint can all benefit from the help of Instant Pay.

Plus, KOHO Instant Pay has no fees for employees who have KOHO accounts, and it offers bilingual support to ensure you always have access to your money the minute you’ve earned it in the workplace.

KOHO’s Instant Pay program also ensures that there’s no administrative burden, fees, or stress for employers. With Instant Pay, payroll is more flexible and streamlined than ever before. All the while, workers get immediate access to their hard-earned money, which leads to higher job satisfaction thanks to a compensation method that takes their daily needs into account. 

With Instant Pay from KOHO, embracing the future of work is just that easy.