Thursday, January 28, 2016

Every Company Could Profit from an Employee Payment Advance Program


Every company should consider adding an employee payment advance program to their payroll process, whether utilizing Activehours or their own internal processes, which could include a paper and, preferably, an online application that would be accessible via company employee portals.

Employees would be advanced their accrued wages, or whatever portion of those wages that they would request (and that each participating company would approve), prior to traditional pay days, via direct deposit and/or check, and for (optional) reasonable fees that would be deducted from the advancements, which they would not be required to re-pay...

Companies could require that employees demonstrate hardship or reasonable cause for payment advances, particularly in instances where they would be utilizing their own resources/staff.

Making a program of the sort privy to employees in only emergency situations might work better for companies that wouldn’t be interested so much in monetarily profiting from payment advance programs than making certain that their employees have the personal resources that they need and that would enable them to report and optimally perform at work...

Alternately, employee payment advance applications could at the least pose the question of why employees would seek payment advances and offer a “private matter that I do not wish to disclose” response option.

Companies that would be interested in monetarily profiting from offering internal employee payment advance programs would certainly have an edge over traditional payday loan companies, with which they could co-exist, however, considering that a significant number of employees might  need loans that are in excess of their accrued earnings within any given pay period...

A substantial number of employees would benefit from payment advance programs that would be offered by their employers and avoid the outlandish interest and other risks that are attached to traditional payday loan programs. An initiative of this sort would also benefit the economy in that employees could timely pay their bills and avoid interest and late fees on those bills, thus improving their credit and spending in consumer markets...







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