Employee retention is a challenge for employers, particularly when trying to keep younger employees happy. Some of the “perks” may not be as appealing as they once were, as employees are often looking for unique benefits. Depending on the industry your business operates in, you may have people looking for alternative payment methods. The traditional paycheck isn’t as appealing to someone without a bank account.
Who Uses Paycards?
Some of the most common paycard users include those who cannot or choose not to use bank accounts. Those going through financial or personal challenges may struggle to secure a bank account, which means they don’t have a place for their wages to be direct deposited. Beyond those who fit into this category, members of the younger generations are opting out of traditional banking practices. A paycard provides any eligible employee with a flexible solution, allowing them to spend their paychecks immediately without feeling tied to a specific bank or credit union.
Some parents of college students are opting for paycards instead of bank cards as well. This option allows the cardholder to pay for essentials, such as food, tuition, and books, with a fixed amount of money. You can’t overdraw on a paycard, which protects both the account holder and the person using it from overspending.
Why Offer Paycards
Offering paycards could be the difference between attracting a potential new hire and continuing your search for the right fit for an open role. Your business can offer flexibility for those who want access to their funds while avoiding traditional banks. Paycards are also extremely secure, ensuring that cardholders have access to their money quickly and efficiently. Users can swipe their physical cards or use them online, just as they would use a standard debit or credit card.
At Payality, we make it easy to accommodate all financial needs, offering solutions for payroll (with paycards as an option), time and labor tracking, benefits administration, and much more. Contact us at 559-634-3113 or visit our payroll page to learn more.