Instant pay (aka early wage access or daily pay) is an incredible benefit for employees and a way employers can stand out in the competition for labor. Learn about financial wellness benefits delivered by UniFocus and Rain Instant Pay.
Did you know that your frontline employees are spending a significant portion of their income just to access their income? And you can help solve it (without increasing your costs) with instant pay.
About two-thirds of the US population struggles to spend, save, borrow, and plan. And while that could easily be written off as poor money management, the problem is bigger than that – it simply costs more when you make less.
Because financial wellness is paramount to employees’ well-being, employers who provide financial wellness benefits see significant benefits in return, from higher engagement to reduced turnover.
UniFocus and Rain Instant Pay are teaming up to provide UniFocus partners a no-cost option to add employee financial wellness benefits, like early wage access.
Whether they’re telling you or not, your employees are struggling to access their wages. It is often the unspoken pain point in their work lives, miring them in financial stress.
The financial services fees they are incurring are essentially lost wages.
Financially coping and vulnerable households spent 13% of their income (a total of $255 billion) on fees for everyday financial services, in comparison to the 1% of income for financially healthy households in 2020 (FinHealth Spend Report 2021). When you’re making close to minimum wage, 13% is a big hit.
So why are they turning to expensive financial services? Many struggling households are unbanked or underbanked and 63% are living paycheck to paycheck (CNBC). With biweekly or varying pay schedules, employees struggle to access the money they are earning when they really need it and turn to expensive financial products for quick access.
Quick stats on the costs of accessing income (see infographic below for more):
Early wage access (aka instant pay, aka same day pay, aka on-demand pay) gives employees their earnings, wages AND tips, ahead of scheduled paydays.
Currently, about 60% of employees are paid bi-weekly or semi-monthly. Where employees might currently turn to payday loans, the UniFocus and Rain partnership allows staff to access the money they have already earned when they need it.
We connect Time & Attendance data to Rain so that the employee can see their earnings. They can then access up to 50% of their earnings in advance (the rest comes on the regular payday), through multiple payout options including debit cards.
Do employees even want early wage access?
You can learn more about early wage access from Rain here.
How would you like to turn on a benefit for your employees that costs you nothing and results in lower turnover, higher productivity, increased applications, higher job satisfaction, and more?
Financial stress impacts employees at their fundamental survival needs. Employers who find a way to relieve this stress position themselves to be the employer of choice.
In a recent survey of Rain users, they have seen impactful results:
While instant pay/early wage access is the primary benefit that employees will see, Rain offers a suite of financial wellness benefits and tools. Discount health and wellness programs are available and employees have access to financial wellness tools and information.
Our partnership with Rain is available to all UniFocus Labor Management and/or Time & Attendance partners. If you are interested in extending Rain benefits to your employees, contact your Partner Relationship Manager. They will work with you on the easy steps to get started.
What does it cost for UniFocus partners to use Rain Instant Pay? Nothing! We know, it sounds too good to be true. But this is why we decided to partner with Rain in the first place.
How much set-up is involved? How long does it take? Very little setup. Rain can have you set up in just a few weeks.
Set up a time to speak with us about Rain and the other ways UniFocus can help you through the labor crisis.
All of this data can be overwhelming! So we think it helps to look at it in a visual infographic. Click the image to enlarge.
You may be wondering where all of this data is coming from. There is an abundance of reporting and studies available. Below are the sources we used and some further reading on the matter.
Data and reports on the costs and state of financial services:
Further reading on the high cost of being unbanked: