When it comes to imagining popular employee benefits and perks, our first thoughts often go to freebies such as beer on tap or free snacks. But the heyday of office rooftops and ping pong tables is being pushed aside as more essential and practical perks take the spotlight, such as getting paid on demand.

Despite a strong run for the American economy, individuals and households continue to find themselves pinched for extra cash. Studies show that 80 percent of Americans still live paycheck to paycheck and that many would have trouble coming up with just $400 cash in the case of an emergency.

In response to and in an era of instant everything, many workers are turning to their employers for relief through on-demand, instant payroll features. Inspired by early gig economy companies and mobile apps that allow workers to tap earned income on-demand, these more mainstream employees now expect similar functionality.

This trend is beginning to take hold in sectors like hospitality where restaurants, hoteliers and others have begun implementing new technology that allows for staff to receive money from upcoming paychecks or tips simply by tapping on an app. Even companies who employ thousands of people have begun to adopt the trend—Walmart has just launched a partnership with Even that allows workers to take a portion of their paychecks early to handle cash emergencies.

The benefits this provides to workers are numerous and obvious. As consumers, they expect speed and convenience for everything in their lives. By gaining access to portions of money owed to them outside of the traditional two-week cycle, they can better match income to expenses and cover emergencies as they arise.

However, a closer look at this trend shows that employers can also benefit from offering on demand instant payments. By allowing workers to get paid on demand, employers can help relieve the potentially tremendous financial stress on their employees and help them to avoid missing work or having to take out short term loans to cover expenses.

The pros to offering instant payouts as a benefit do not stop there. Companies that offer instant or on-demand payroll could also save on back office expenses. By moving to a completely digital push payment platform, employers can save on the time and expense of managing traditional paper check or ACH payroll systems. The instant nature of push payments and verification and reconciliation features can also help save on missing paychecks or other expensive manually-intensive operations.

Those companies that do offer on-demand payroll as a benefit can gain a distinct competitive advantage in the marketplace. At a time when unemployment is at all-time lows and companies are aggressively competing for workers at all levels, the ability to stand apart with a unique benefit offering and a reputation for being innovative is priceless.

Drew Edwards is founder and CEO of Ingo Money.

Related:

Instant Insights /

Forget ping pong and beer taps, this is the perk employees want

More From HR Executive

Related Stories

Recommended For You