Organizations are working on more flexible payment options, including same-day pay, as an incentive to attract and retain top talent within a tight and “gig” economy-focused labor market.
Technology, connectivity, and a competitive talent market have enabled modern professionals to demand more flexibility in how they work—and how they are compensated. Traditional weekly, biweekly, and monthly pay cycles don’t meet the expectations of this evolving workforce.
ScottMadden partners with leading organizations to help optimize their payroll operations. We recently completed the development and implementation of a flexible pay program within the healthcare sector.
Workforce profiles common to healthcare, including shift-based work, illustrate the opportunity to adapt pay cycles to match an organization’s talent profiles:
By reviewing your organization’s operations and workforce structure, you can begin to understand what type of payment solutions to consider and how to implement them. Whether your employees are full time, contract, freelance, or a combination, there are three fundamental steps ScottMadden recommends taking:
Each organization is different. You’ll want to know if a flexible payment solution would truly be effective with respect to your workforce and operational challenges. Look closely at the problems you are trying to address:
Being clear about these and other potential challenges will allow you to make the most effective choices in the most efficient ways possible.
Having reviewed the unique components and characteristics of your payroll operation, you can now best evaluate the various pay options available to you:
You will also want to consider the fee structure, regulatory considerations, and accounting implications for each option relative to the scale of your organization.
Your final decision should encompass how your organization assesses factors such as fees and risks, as well as potential obstacles long term. For instance, internal processing may not be a viable option due to existing system capabilities or resource limitations.
With key decisions made, next comes the most exciting—and the most intricate—part of the process. To make your organization’s new flexible pay solution function smoothly, you’ll need to:
Figure 1: Flexible Pay: Payment options should address organization objectives and talent profiles.
With more than 25 years of experience in HR operations and shared services consulting, ScottMadden can help you identify optimal pay solutions within an increasingly competitive talent market. Our team of experienced specialists and can help you implement a successful new approach that helps attract and retain employees, all while avoiding potential pitfalls along the way. To learn more about ScottMadden, visit us at www.scottmadden.com.
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